Connect with us

Economy

Restaurant association says the industry will suffer from a minimum wage increase

Published

on

Screen Shot 2021 02 16 at 12.24.09 PM

The National Restaurant Association is urging Congress against implementing the Raise the Wage Act, which would raise the federal minimum wage to $15 an hour.

The association wrote a letter to congressional leadership Tuesday requesting Congress remove the act from the $1.9 trillion stimulus plan. They warned that restaurants would suffer from a wage boost amid the coronavirus pandemic and cited results from a February survey polling 2,000 restaurant operators, who said that the increase would lead to job losses, higher menu prices and restaurant closures.

The survey found that 82% of restaurant operations say the initial wage increase would negatively impact the ability of the restaurant to recover from the coronavirus pandemic.

“The survey results make it crystal clear that the restaurant industry and our workforce will suffer from a fast-tracked wage increase and elimination of the tip credit,” Sean Kennedy, Executive Vice President of Public Affairs for the National Restaurant Association, wrote in the letter. “Restaurant jobs will be critical to every local community recovering from the pandemic, but the Raise the Wage Act will negate the stimulative impact of a worthy plan.”

Kennedy continued, “Passage of this bill this year would lead to job losses and higher use of labor-reducing equipment and technology. Nearly all restaurant operators say they will increase menu prices. But what is clear is that raising prices for consumers will not be enough for restaurants to absorb higher labor costs.”

The Raise the Wage Act, which Sen. Bernie Sanders (I-Vt.) introduced last month, would also eliminate the tipped minimum wage for restaurant service workers.

“Eliminating the tip credit will hurt millions of servers who rely on the current system where they earn between $19-$25 an hour with tips,” Kennedy wrote.

Kennedy understands the minimum wage issue in America, but thinks the Raise the Wage Act is “the wrong bill at the wrong time.”

“We share your view that a national discussion of wage issues for working Americans is needed,” Kennedy said, “but the Raise the Wage Act is the wrong bill at the wrong time for our nation’s restaurants.”

Follow Annaliese Levy on Twitter @AnnalieseLevy

Continue Reading

Economy

Michigan asks residents to house migrants, enroll children in school and help adults find employment

Published

on

Screen Shot 2023 01 09 at 4.26.56 PM

Michigan is asking its residents to help with the mess its leadership created and house migrants in their own homes. The state Department of Labor and Economic Development said volunteers who participate must commit for at least 90 days as part of the refugee support program.

In addition to opening up their homes, sponsors are expected to support newly arrived refugees by greeting them at the airport, securing and preparing initial housing, enrolling children in school and helping adults find employment.

“Programs like the Welcome Corps advance the Office of Global Michigan’s mission to make Michigan the home for opportunity for our immigrant, refugee and ethnic communities,” said Poppy Hernandez, Global Michigan Director and Michigan’s Chief Equity and Inclusion Officer. “Expanded refugee resettlement pathways empower more Michiganders to support our state’s growing refugee population and build a more welcoming and inclusive Michigan for all.”

The migrants will come from Cuba, Haiti, Nicaragua and Venezuela, all points of origin where many have been hoping to apply for asylum at the U.S.-Mexico border.

Fox News reports “cities like New York and Chicago have also dealt with issues related to migrants committing crimes, as well as pushback from residents who have voiced anger and concern over the influx. Migrant shelters in those cities have largely been full, forcing officials to come up with ways to safely house the migrants.”

Last year, Massachusetts officials asked residents to open their doors as migrant shelters were full at the time. “Most importantly, if you have an extra room or suite in your home, please consider hosting a family. Housing and shelter is our most pressing need and become a sponsor family,” said Massachusetts Lt. Governor Kim Driscoll.

Continue Reading

Trending