Ok then why not cut now? Are some of you people unproductive now? Or does raising the minimum wage improve productivity? Which is it?
When wages are lower, the managers can have a larger crew pool, because people don’t have to be peak producers in order to be affordable. A larger crew pool gives the managers and other workers more flexibility and less stress.
When wages go up, either the cost of what they’re selling has to go up, or the employees have to earn more (get more work done in the same amount of time). Usually both — prices go up, and only the most effective and efficient workers stay on.
This is why raising the minimum wage is usually hardest on young black males. When the minimum wage is high, they often don’t have the skills to earn enough to match their wage, and no one can afford to take them on and train them so they can learn those skills.
Minimum wage hikes generally result in fewer “entry level” kind of jobs, both because there are fewer of those jobs to start with, but also because a higher percentage of people who already have the basic skills to move on will stay at entry level, because there’s not enough financial incentive to move up. So the kids who most need those jobs — which, in our culture, is mostly young black men who aren’t getting those basic skills at home — can’t find them.
He is saying that he will only be able to retain his top performers and will in the future only hire people who come in at the top of their game.
No more trainees. No more being able to cut someone slack because they are having a hard time outside of work. No more being able to take an injured worker back on light duty. No more having more then the bare minimum of people on during the down hours. And this will probably result in short shifts for many. Rather then working an eight hour day you will work six coming in just before the breakfast rush and leaving right after the lunch rush or coming in just before lunch and leaving right after dinner.
Ok then why not cut now? Are some of you people unproductive now? Or does raising the minimum wage improve productivity? Which is it?
**********************************************************************
Your logic is correct. What she will expect is fewer people carrying a larger work load but if they are already working at or near capacity there will be very little or no slack to pick up. It’s a lose, lose situation for both employer and employee.