For years, Democrats have been fighting to raise the minimum wage. While most states have raised this minimum, the national limit is $7.50 an hour. Liberal activists have demanded $15 an hour. Some progressives want even more.
At a time when inflation is destroying entire industries, forcing companies to raise prices higher and higher—Democrats seem to think they can limitless cash to give to low-skilled workers.
In one blue state, a new law just went into effect. It has raised the minimum wage all the way to $20 an hour. While fast food workers celebrated the news, companies made a dire warning. This “victory” could end up putting many out of work.
The California Fast Food Workers Union held a rally on Wednesday celebrating the state requiring fast food workers to be paid at least $20 per hour…
Some companies and managers have warned that the pay increase will come alongside cut hours for employees…
One worker, Sangra Jauegui, said she was happy to get the additional money in her paycheck, but was worried about her co-workers’ hours being cut.
“My boss told me that he won’t reduce my hours but that he will cut others’ hours,” Jauregui said.
Companies such as Jack in the Box, Chipotle, McDonald’s, and Starbucks have warned that the wage increase could inflate menu prices by between 2.5 and 3.5 percent. Pizza Hut has warned around 1,000 workers that they could lose their jobs. [Source: The Post Millennial]
California’s new minimum wage law for fast food workers went into effect this April. A union that represents fast food workers celebrated the new law with a “rally”—which appeared to be lightly attended.
But as these workers brag about this new, government-mandated rule, companies are looking to quickly find ways to save money. Food costs have skyrocketed under President Biden. That has put a major burden on restaurants, especially fast food chains—which historically offer affordable meals to families.
Prices have exploded in recent years. Now, in California, these companies are faced with one of two options. Either they jack up prices even higher, hurting customers. Or, they slash their workforce to pay their higher wages.
Companies like McDonald’s have been rolling out plans to cut their workforce for years. These chains are using apps and digital kiosks to reduce the number of workers. They are making restaurants smaller and removing self-service soda dispensers, to cut down on cleaning staff.
This new wage hike will only speed up this process. It might not be long before most fast food chains in California have zero workers—only automated systems. Even as Democrats brag about this change, they are helping accelerate layoffs.
Author: Bo Dogan
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