Author Topic: Look Ma! Business solves worker shortage  (Read 548 times)

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Offline nosuchreality

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Look Ma! Business solves worker shortage
« on: June 15, 2021, 07:46:01 AM »
What raising wages created a flood of a 1000 applicants.  Surprise surprise.

Quote
The owners of Klavon’s Ice Cream Parlor had hit a wall.
For months, the 98-year-old confectionary in Pittsburgh couldn’t find applicants for the open positions it needed to fill ahead of warmer weather and, hopefully, sunnier times for the business after a rough year.
The job posting for scoopers — $7.25 an hour plus tips — did not produce a single application between January and March.
So owner Jacob Hanchar decided to more than double the starting wage to $15 an hour, plus tips, “just to see what would happen.”
The shop was suddenly flooded with applications. More than 1,000 piled in over the course of a week.




https://www.washingtonpost.com/business/2021/06/10/worker-shortage-raising-wages/

Offline morekaos

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Re: Look Ma! Business solves worker shortage
« Reply #1 on: June 15, 2021, 08:16:33 AM »
...when you pay people more than the work is worth, of course you will get tons of takers.  $15/hour to scoop ice cream does not require a sophisticated skill set...however the cost of that cone is going up for everyone (including the workers)...inflation.  Basic economics 101.

"Most employers The Post spoke with acknowledged the challenges that came from increased labor costs, which already make up an outsize portion of the budget in restaurants and bars compared with other industries.

Three of the 12 businesses interviewed said that they had raised prices for consumers to help offset the wage increase. White Castle increased menu prices in the Detroit area after increasing its minimum wage there to $15 an hour, as did another restaurant that raised wages, Brown Sugar Kitchen in Oakland, Calif. The Midwest-based clothing and design store Raygun increased prices by about 1 percent after raising wages to an average of $15 last year, owner Mike Draper said."

Offline Kenkoko

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Re: Look Ma! Business solves worker shortage
« Reply #2 on: June 17, 2021, 01:10:02 AM »
...when you pay people more than the work is worth, of course you will get tons of takers.  $15/hour to scoop ice cream does not require a sophisticated skill set...however the cost of that cone is going up for everyone (including the workers)...inflation.  Basic economics 101.

"Most employers The Post spoke with acknowledged the challenges that came from increased labor costs, which already make up an outsize portion of the budget in restaurants and bars compared with other industries.

Three of the 12 businesses interviewed said that they had raised prices for consumers to help offset the wage increase. White Castle increased menu prices in the Detroit area after increasing its minimum wage there to $15 an hour, as did another restaurant that raised wages, Brown Sugar Kitchen in Oakland, Calif. The Midwest-based clothing and design store Raygun increased prices by about 1 percent after raising wages to an average of $15 last year, owner Mike Draper said."

So what?

The measure of a healthy economy is not the availability of a limitless supply of people willing to work for $2.13 an hour plus tips.

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Offline HMart

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Re: Look Ma! Business solves worker shortage
« Reply #3 on: June 17, 2021, 11:09:13 AM »
Yeah, we have also increased starting wages to stay ahead of the retail curve.

Offline Cares

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Re: Look Ma! Business solves worker shortage
« Reply #4 on: June 17, 2021, 12:31:45 PM »
There are several restaurants that I enjoy frequenting because they very clearly say it is a "no tipping" restaurant and that prices are increased in order to pay staff higher wages. I'm all for this instead of paying restaurant workers less than minimum wage and giving them tips.

Offline aquabliss

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Re: Look Ma! Business solves worker shortage
« Reply #5 on: June 17, 2021, 01:40:14 PM »
There are several restaurants that I enjoy frequenting because they very clearly say it is a "no tipping" restaurant and that prices are increased in order to pay staff higher wages. I'm all for this instead of paying restaurant workers less than minimum wage and giving them tips.

Never seen this, can you name a few restaurants around here with those signs?  I bet people still leave tips out of habit or they just feel bad for the workers. 

 

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