07/17/2024

News

Commentary: The Ugly Truth About A $15 Minimum Wage

These young adults who face long spells of unemployment now are at a long-term disadvantage relative to their employed counterparts. One study released by the Employment Policies Institute found that high-school seniors with part-time work experience earned 20% more per year on average, 6-9 years after graduating, relative to their fellow students who didn’t work. Ironically, today’s minimum wage mandate for higher pay will be condemning young adults to lower-paid and less-successful futures.

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Opinion: Unions’ $15 Minimum Wage About-Face

Recent discussions within Los Angeles labor groups reveal inherent hypocrisy within the “Fight for $15” campaign. Unions paid plenty of lip service toward this effort, which would raise the minimum wage to $15. . . It seems that unions should be celebrating this supposed win for workers – yet union leaders are currently seeking an exemption to the $15-an-hour minimum wage for union members.

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CA wage hike shock waves begin

One immediate result of the hikes has already appeared in Southern California, where the garment industry faces an especially rough road. Sung Won Sohn, former director of apparel company Forever 21 and economist at Cal State Channel Islands, told the Los Angeles Times a veritable “exodus has begun,” with manufacturers already tempted to shift garment production overseas to retreat from the Golden State still further. “The garment industry is gradually shrinking and that trend will likely continue.”

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California’s Minimum Wage Hike Debate…Or Debacle?

The complete lack of public debate over this policy decision harkens back to the smoke-filled rooms of old-time power politics, where the public had little say over what actually happened in the halls of power. And in the rush to shove this measure forward without any deliberation, the state is now forced to bear a policy that will, in all likelihood, do more harm than good to the very people the state is trying to, in theory, help. . . The real shame is that California continues to play with a policy tool that has a proven track record of not working when there are plenty of policy options that do. Pre-kindergarten education is a pricey but proven winner. The Earned Income Tax Credit is another potential option with a proven track record. But these programs cost money and that means either asking for tax hikes or taking money from other uses—options no one in Sacramento seems to be able to stomach.

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Editorial: UC Berkeley Touts $15 Minimum Wage Law, Then Fires Hundreds Of Workers After It Passes

A week after California Gov. Jerry Brown signed the state’s $15 minimum wage boost into law, UC Berkeley Chancellor Nicholas Dirks sent a memo to employees announcing that 500 jobs were getting cut. . . Last year, University of California President Janet Napolitano announced plans to boost its minimum wage to $15 at the start of next school year, independent of the state law. Since UC Berkeley was already in financial trouble — it ran a $109 million deficit last year and is projecting a deficit of $150 million this year — number crunchers there had to have factored in the higher mandated wage when making their layoff decisions.

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CalPERS sets higher pension contribution rates

The state’s contribution will increase by an estimated $602 million, to $5.4 billion a year. School districts will be charged an additional $342 million, to a total of nearly $1.7 billion a year. While teachers are covered by CalSTRS, other school employees get their pensions from CalPERS.

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California minimum wage hike hits L.A. apparel industry: ‘The exodus has begun’

After years of net losses, moving production out of Los Angeles is necessary for the survival of American Apparel, industry experts said. The company initially considered staying in California and moving to the city of Vernon, according to a person familiar with the discussions who was not authorized to speak publicly. After the state raised the minimum wage, executives began looking at manufacturers in the South, the person said.

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Minimum Wage Hike Puts Nonprofits in an Awkward Position

Which brings us to Klaus’ major dilemma, which mirrors that of many business owners. The majority of his workers aren’t paid minimum wage. Many have put in years on the job and have specialized skills and training. But if Klaus’ entry-level workers get raises, he’s convinced it’d only be fair to give those who now make just over the eventual minimum wage salary increases, too. . . So he’s estimated resulting wage hikes at the agency’s 31 group homes alone will cost $2.1 million annually.

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The U.S. Occupations at Greatest Risk of a Labor Shortage

“In the next 10 to 15 years, we expect U.S. employers to demand more labor than will be available, which will, in turn, constrain overall economic growth,” the Conference Board said in a report to be released Tuesday.

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Hidden Debt, Hidden Deficits: How Pension Promises Are Consuming State And Local Budgets

In total, the study covers 564 state and local systems in the United States that reported $1.91 trillion in unfunded pension liabilities under GASB 67 in FY 2014. The analysis reveals that, despite well-performing markets from 2009 to 2014, state and local government pension systems are underwater by $3.4 trillion and that the true cost of keeping pension liabilities from rising is 17.5 percent of state and local budgets. Even contributions of those magnitudes would not begin to pay down the trillions of dollars of unfunded legacy liabilities; they would simply stop the unfunded liability from rising.

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Minimum Wage “Aftershock” — Public Officials Brace for “Wage Hike Tsunami”

Nothing short of a “tsunami” appears headed towards state and local government balance sheets as the full extent of the minimum wage “aftershock” begins to come into sharper focus.  This comes as state and local governments are still reeling from the impact of unfunded pension and health care liabilities on the order of $1.2 trillion and growing, according to Stanford University.

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Borenstein: BART bought off well-paid workers despite large deficit

But that lacks context. BART officials gave away the store in 2013. The new extension, to 2021, layers onto the earlier deal, further inflating salaries without paring back sweetheart benefits. . . BART negotiators gave up any hope of saving money by insisting workers contribute their fair share to their pensions.

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California court upholds teacher tenure, dismissal laws

The controversial court ruling that declared California’s teacher tenure and dismissal laws unconstitutional was overturned Thursday by a state appeals court.

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California’s $15 Minimum Wage: What We Know and Don’t Know

The enactment of California’s $15 state minimum wage is, of course, not the final word, as state leaders will be able to make adjustments over time to deal with the current unknowns. The plan to reach $15 by 2022 includes provisions for delaying the scheduled increases if the economy weakens or the state budget is projected to face a deficit, as discussed above. In addition, because the increase will be implemented gradually, policymakers will be able to monitor its effects and make additional adjustments if necessary. For example, it will be important to look at how the minimum wage increase affects lower-cost regions of the state, where the wage hike is expected to have a much greater impact, and also how it affects workers’ access to subsidized child care, which low-paid workers need in order to work.

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LA unions call for exemption from $15 minimum wage they fought for

Los Angeles city council will hear a proposal on Tuesday to exempt union members from a $15 an hour minimum wage that the unions themselves have spent years fighting for.

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