Living wage

Labour should read this since they are talking about the Future of Work

Want to know why automation is replacing menial jobs?

Labour want to know…as they have their Ten Big bumper sticker slogans and attempt to find out why it is that automation is going to replace every job.

They should read the Wall Street Journal article about restaurant automation and wonder no more about why it is people are being replaced.

Consumer preferences, reduced technology costs and government policies that increase labor costs are driving a trend toward automation in the restaurant business. If you make something more convenient and less expensive, it tends to catch on.

As recently as the 1960s, gas-station employees would rush to fill your car’s tank, wash the windows, check the oil and put air in the tires. Telephone operators made your long-distance calls and bank tellers cashed your checks. Those jobs now are either gone or greatly diminished.

Today, we reduce jobs whenever we shop on Amazon instead of our local retail outlet, use an Uber app rather than calling a cab dispatcher, order a pizza online, use an airport kiosk to print boarding passes, or scan groceries. Each of these changes in behavior has increased convenience and reduced labor costs—and competitive businesses pass the savings to their customers.

In the restaurant business, the increasing impact of technology doesn’t mean that a robot will soon roll up to your table and say, “Hi, I’m Trudi4783. I’ll be your automated server today.” But technology can replace certain functions. Touch screens are already transforming the way food is ordered in many restaurants.

In late 2013, Chili’s and Applebee’s announced that they were installing more than 100,000 tableside tablets at their restaurants across the country, allowing customers to order and pay their bill without ever talking to a waiter. The companies were soon followed by Buffalo Wild Wings, Panera Bread, Olive Garden and dozens of others. This means fewer servers covering more tables. Quick-service restaurant chains are also testing touch-screen ordering.

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Gutless Wellington Chamber give up legal action against Council

The Wellington Chamber of Commerce have shown abject cowardice in withdrawing legal action against the Wellington City Council.

Wellington Chamber of Commerce has backtracked on threats to take Wellington City Council to court over its living wage policy.

The council, which has been paying its own staff a living wage since 2013, voted in October to require its security services contractors do the same.

The chamber announced it was concerned about the ability of the council to do that under the Local Government Act and sought a judicial review of the council’s living wage policy.

In a joint statement issued on Wednesday, both parties said legal proceedings had been halted and they were working towards finding a way to pay contractors the living wage that was acceptable to the council and the chamber.   Read more »

Perhaps if we set the minimum wage at $50/hr, all our problems will be solved

The other day Martyn Bradbury declared :

The living wage is $19.80 – let’s push for $20. The arguments for increasing it outweigh the negative. People spend that money directly into their neighbourhoods, small business will benefit from more local spending – large corporations will get grumpy. But screw them.

This demonstrates the retarded spasticity of the left wing when it comes to simple economics.

But it isn’t just this fool. It seems there are plenty of others pushing for the minimum wage to become the highest in the OECD.

Earlier this week, the government raised the minimum wage by 50 cents, and the country’s living wage movement announced a new rate of $19.80.

In a debate on RNZ’s Sunday Morning programme, Eric Crampton, who is an economist and the director of the New Zealand Initiative, said among developed countries New Zealand already had the highest minimum wage in relation to the average wage.

Mr Crampton said it was unreasonable to set the minimum wage high enough for people to live off it without any subsidy.   Read more »

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Promises, promises: with Laila Harre, it’s deja vu all over again

Internet Party Leader

Internet Party Leader

Harré co-owns an Auckland restaurant, O’Sarracino, which is working towards paying a living wage to its staff.[17]

-wiki

Two years ago a newspaper reported…

2014

Ms Harre’s restaurant, O’Sarracino in Mt Eden Rd, hosted the announcement of the accreditation system yesterday but still pays two employees below $18.40. Another director of the business, Maurizio Piglia, said those two would be paid the new $18.80 rate by June or July “if the business environment supports us”.

-A newspaper

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Wellington Chamber of Commerce to seek judicial review of Council decision over living wage

Very pleased to see that the Wellington Chamber of Commerce is seeking a judicial review of the council’s dopey living wage rules.

It’s about time that dud councillors were held personally responsible for their dopey decisions.

Wellington City Council’s decision to pay its security contractors a living wage is headed to the High Court, and ratepayers could end up paying some of the legal bills.

The Wellington Chamber of Commerce announced on Friday that it would seek a judicial review of the council’s living wage policy.

The council, which has been paying its own staff a living wage since 2013, voted 9-6 in October to require its security services contractors do the same.

The living wage is the hourly rate a worker needs to participate as an active citizen in the community. That amount is currently $19.25 per hour but the council’s interpretation is $18.55.

Bumping up the wages of all security guards, noise control officers and cash collection staff was estimated to cost the council an extra $1.7 million on top of the price of the seven-year contract.    Read more »

Bar without booze fails. No shit

Some people have more money than sense.  And the result is, they end up with less money and no sense.

Auckland’s night-time revellers have spoken – there’s no room for a dry bar in the city.

Tap Bar, the country’s first alcohol-free bar, has shut its doors after only five weeks of business on Karangahape Rd.

Co-owner Grady Elliott said he was applying for a liquor licence and would relaunch as a nightclub.

“We gave it a shot and Auckland drinking culture just didn’t tie in with the dry bar. No one showed up,” he said.

Tap Bar, which stands for The After Party, charged a $15 entry fee and non-alcoholic drink prices started at $5.

It opened at midnight and hoped to attract customers spilling out of neighbouring nightclubs at 4am closing.

Elliott said the bar had a few customers but they drank water and little money was passed over the counter.

“We took it by the balls and gave it a punt. We knew it could have gone either way and we were prepared for it,” he said.

Actually, you got punted in the balls.   Stupid idiots deserve that.  Like that idiot that decided to pay all his staff at least a “living wage” of $70,000 per year discovering his business was no longer economic to run.

Dreamers.

Take note, and never go into business with people like that again.  And if you do, make sure you take all the money up front.

 

– ODT

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.