Coffee Giant Increases Min Wage And Employees Learn A HARD Lesson In Economics…
When most of us first started out in the work force, at one point or another we all started at minimum wage jobs. For some it was the fast food place down the street, for others it was a grocery store. The point is, we all knew what was up.
The reason why we didn’t get anything above minimum wage at the time is that we didn’t deserve anything above minimum wage.
The liberal left really has a hard time with the whole minimum wage thing. Many of them have their heart in the right place, they want people to have more money. But, the economics simply don’t make sense. When you raise the minimum wage, employers are forced to either raise prices or cut costs.
In Canada, Tim Hortons employees are learning that the hard way.
From Washington Times: Heirs of the Canadian coffee chain Tim Hortons taught lawmakers a lesson in economics this week in response to a minimum wage hike.
Jeri Horton-Joyce and Ron Joyce Jr., children of the late NHL legend and restaurateur Tim Horton, told Ontario employees this week that a $2.40 minimum wage jump has forced them to adjust benefits packages. The pair said their decision is the prudent thing to do as unintended financial consequences of the policy make themselves known.
“These changes are due to the increase of wages to $14.00 minimum wage on January 1, 2018, then $15.00 per hour on January 1, 2019, as well as the lack of assistance and financial help from our Head Office and from the Government,” a letter to employees said, The Toronto Star reported Wednesday.
As you can imagine, the employees weren’t pleased.
From Conservative Tribune: According to the CBC, employees at the Cobourg, Ontario, were not particularly pleased when they were asked to sign a document noting that they would be losing their paid breaks and had to begin contributing toward certain health benefits because of the minimum wage hike, with one anonymous employee stating, “I feel that we are getting the raw end of the stick.”
The tough news came in a letter distributed to employees by Ron Joyce Jr. Enterprises, which stated, “These changes are due to the increase of wages to $14.00 minimum wage on January 1, 2018, then $15.00 per hour on January 1, 2019, as well as the lack of assistance and financial help from our Head Office and from the Government.”
Liberals really need to rethink their position on this issue. It’s not a winner. In fact, raising the minimum wage ends up hurting the lower skilled workers that the left thinks they are helping.
From Heritage Foundation: Supporters of raising the minimum wage say that it is an important way to help disadvantaged workers get ahead. Though the majority of minimum wage workers are teenagers or young adults under the age of 25, the case for raising the minimum wage focuses on how it will help low-income adults who are struggling to get by. But businesses change their mix of workers when the minimum wage rises. If they must pay higher wages, companies hire more highly-skilled and productive workers. Poor, low-skill workers thus lose out.