Living wage

Auckland Council finally gets one right, but probably by accident

Simon Collins has run dry of faux poor people to pimp.  But he’s getting stuck into Auckland Council for voting against a living wage initiative.

Auckland Council staff have told a local board that it cannot pay the “living wage” to its swimming pool attendants because it would set a precedent for other council workers.

The Albert-Eden Local Board resolved in February and again last week that a new contractor at the Mt Albert Aquatic Centre should be required to pay all staff at least the living wage, defined by unions and community groups as $19.25 an hour.

But Auckland Council chief executive Stephen Town has overruled the board and told its chairman, Peter Haynes, that the living wage would be “inconsistent with the governing body’s policy position”.

“I acknowledge that we are dealing with one contract for a local facility but the implications of requiring a living wage, even in one contract, will have ramifications beyond your local board’s area of responsibility and would have untenable consequences for me as the employer of council staff,” he said.

It’s really funny how Auckland Council’s financial management is driven by the need for more money for trains as opposed to a ideological opposition to a living wage.   Read more »

Left Wing Blog now running paid for content SHOCK HORROR

I really love it when people throw mud, in the hope that it will stick, while doing themselves exactly what they are accusing others of doing, without any real evidence only conjecture.

Well I have a little more than conjecture to offer as this is clearly an advertorial for Laila Harre’s new business venture. It seems her walk around New Zealand with her sister talking about socialist politics has left barely a ripple on the public consciousness so she has gone back to what she is really good at…..making money as a hard nosed capitalist.

One of New Zealand’s left wing Blogs has promoted her restaurant today in a blatant advertorial piece. I wonder how the writer was paid? A free meal or two? or a ‘ donation ‘ to the running of the Blog or was there an actual invoice for advertising?

According to all the left wing blogs it is ok for journalists to be paid for content but not bloggers. It is dirty apparently to hide the fact that you have been paid to write a piece or have received some other form of compensation. Even MSM these days hide advertorials and call them news because they do not want to be seen to be writing to order. Remember, being paid is dirty and if you are a Blogger then it is down right filthy.

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The unintended consequences that do-gooders never think of

A living wage? Increase the minimum wage?

Good ideas right?

Perhaps not…on the surface it’s all motherhood and apple pie until the rubber hits the road.

In Seattle the minimum wage has been jacked up to $15 by the local authorities. It is the highest minimum wage in the United States.

And it has had an effect…just not a positive one.

In a few weeks, Seattle’s new, highest in the country, $15 per hour minimum wage will go into effect. Like many liberal policies, it was passed by City Hall with the best of intentions. The only problem is, in the end, it may do more harm than good for many.

Private businesses, unlike government entities (which, in theory, can always raise taxes or borrow), must make more than they spend in order to pay the rent, make payroll, keep the lights on, pay their business taxes, and, heaven forbid, have some left over for the owners and investors who are taking the risk and putting in the long hours.

Earlier this month, Seattle Magazine asked, Why Are So Many Seattle Restaurants Closing Lately?:

Last month—and particularly last week— Seattle foodies were downcast as the blows kept coming: Queen Anne’s Grub closed February 15. Pioneer Square’s Little Uncle shut down February 25. Shanik’s Meeru Dhalwala announced that it will close March 21. Renée Erickson’s Boat Street Café will shutter May 30 after 17 years with her at the helm…What the #*%&$* is going on? A variety of things, probably—and a good chance there is more change to come.

The magazine went on to report that one “major factor affecting restaurant futures in our city is the impending minimum wage hike.” Anthony Anton, president and CEO of Washington Restaurant Association, told the magazine, “It’s not a political problem; it’s a math problem.” He estimates that restaurants usually have a budget breakdown of about 36 percent for labor, 30 percent for food costs, and 30 percent to cover other operational costs. That leaves 4 percent for a profit margin. When labor costs shoot up to say 42 percent, something has to give.

Restaurants can take actions to adjust, such as raise their prices, acquire cheaper ingredients, and cut their operating hours and labor force. However, all those actions generate reactions from the public which can still lead to lower revenues for the restaurant and, for some, the decision to close their doors.

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So, you want a living wage?

This is what happens when you artificially price labour out of the market.

Unions destroy jobs with their minimum wage demands

I warned people this would be the result.  Why can’t unions ever see beyond the next wage round?

mcdonalds-automation

If there’s a silver lining for McDonald’s in Tuesday’s dreadful earnings report, it is that perhaps union activists will begin to understand that the fast-food chain cannot solve the problems of the Obama economy. The world’s largest restaurant company reported a 30% decline in quarterly profits on a 5% drop in revenues. Problems under the golden arches were global—sales were weak in China, Europe and the United States. Read more »

Campaigners to raise the minimum wage busted advertising minimum wage jobs

Socialists are hypocrites the world over.

In New Zealand we have seen political parties on the left advocating for a living wage dreamed up by an Anglican vicar  from Lower Hutt. The Wellington City Council adopted this arbitrary wage and one of the councillors voting for it was busted paying his own staff minimum wage and refused to pay them the same wage he voted the council to pay their workers.

We saw Laila Harre advocating and pushing the living wage as well while in the employ of a fat German man who exploited his workers paying them far below the minimum wage,  for which there will be some fall out in due course via the Employment Court.

Now in Seattle a similar campaign has been busted for being sanctimonious hypocrites themselves.

The website of Seattle’s Freedom Socialist Party lists its most recent presidential candidate Stephen Durham’s political positions, which include the party’s effort to “raise the minimum wage to $20 an hour.” The group also avidly supported a successful push for a $15-per-hour minimum wage in Seattle, which passed this year. However, as Zenon Evans at Reason pointed out, that same political party just got caught posting a $13-per-hour job listing seeking a web content manager with web development skills.  Read more »

Bob Jones on the living wage

Yesterday Bob Jones gave his considered opinion on the living wage.

He has spent some considerable time talking to retailers about costs in their businesses, which led him to a discussion on wages and staffing:

My inquiry as to the best employees brought an unsurprising answer – new immigrants by a country mile. What particularly interested me was the salaries for what’s essentially menial work. In most cases they’re on the minimum wage. Any more and they’re out of business, he said, and I believe him.

I mention all of this in the context of the absurdly titled living wage clamour, the noise invariably coming from leftish critics not employing anyone, nor ever likely to. There are exceptions. Two leftie Wellington city councillors, respective owners of small city retail food businesses, led the charge recently for menial task council employees to be paid the so-called living wage. Inquiry however, revealed their own employees were on the minimum wage.

“We’d go broke,” they wailed when their hypocrisy was exposed. It was classic left do as I say, not as I do, double standards. Everyone benefits from a high wage economy as it increases spending power and thus the economy. But it also necessarily increases prices which no one wants to meet, thus shop assistants are the lowest paid sector in the work force, despite being one of the largest.   Read more »

Minimum/Living wage outrage

minwage

A reader emails

Have just been reading the article on Stuff about Aroha Ireland. [ and the Herald, and TV3 – running leftie sob stories for Labour and the unions in unison as we see time and time again ]

It became fairly obvious reading the piece that it was politically slanted and large parts likely not true (‘fleeing’ the country, and $38 per hour to work in a warehouse?!) However this is not what annoyed me the most. Read more »

Pimping the poor but not telling the truth

I see that the Fairfax newspaper North Shore Times is pimping the poor again.

Father of two ‘Ofa Ta’ufo’ou can’t spend more than $100 a week to feed his family.

That’s breakfast, lunch, dinner, snacks, drinks – the works. Any more and the Birkdale resident breaks the household budget.

The 43-year-old works “like an animal” for at least 40 hours a week and still struggles to make ends meet.

“At the moment I can’t afford to take my girls to the movies. So I have to ask: Who has failed my family? The system has.

“And I’m not the only one struggling. A lot of people in the community can’t function as a family because of their finances.”

The community worker says the problem is nationwide and something must be done.

“We need to push people in power to do something about the poverty in this country. People are working like animals just so they can pay the basics.”

Ta’ufo’ou said savings is not a word in his vocabulary.

“I work so hard and can’t save any of it. My wife and I budget every single cent.”

Their combined fortnightly income is $2000, nearly half of which is spent on rent.

Humans should live in dignity, he said.

“This is a human rights issue. Everyone deserves to live like a human instead of spending all their time worrying about money.”

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Poverty on the rise, income gap widening? Nope. Just a left mantra without a basis in fact

I have to admit, ACT are actually doing what the media should be doing – researching opposition claims and countering them with hard facts.  Try this one on for size:

“A Roy Morgan poll shows that the issue people are most concerned about is income inequality. This just goes to show how the persistent repetition of a lie bewilders the public. Income inequality is not in fact rising. And the child poverty rate has been declining for nearly 20 years, falling from 35% in 1994 to 16% in 2007 and recently returning to pre-global financial crisis levels in 2012” said Dr Whyte.

“Those who advocate socialism have exploited the public’s concern about a rising number of people being trapped into a cycle of dependency. The Left’s repeated claims that New Zealand is getting more unequal are simply false and divert attention from policies that would help people out of dependency.

“Prior to the recent recession, there were 15 years of steady growth in median household incomes driven, in part, by the steady increase in the number of two-parent households where both parents are in paid employment (3% pa).

qwewew

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