USA-NEW YORK/MINIMUM WAGE New York moves to raise state minimum wage to $15 for fast-food workers

Record ID: 149339

  • Title: USA-NEW YORK/MINIMUM WAGE New York moves to raise state minimum wage to $15 for fast-food workers
  • Date: 23rd July 2015
  • Summary: NEW YORK, NEW YORK, UNITED STATES (JULY 23, 2015) (REUTERS) EXTERIOR OF CHIPOTLE VARIOUS OF POTBELLY EXTERIOR MCDONALD'S EXTERIOR (SOUNDBITE) (English) PAUL, NEW YORKER, SAYING: "I think it's great. I think it will lift a lot of people out of poverty. I think you also have happier employees, more motivated employees. I know that given the fact that they're paid such a low
  • Embargoed: 7th August 2015 13:00
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  • Topics: General
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  • Story Text: New York moved on Wednesday (July 23) to raise the minimum wage for fast-food workers to $15 (USD) an hour by the end of 2018 in New York City and by mid-2021 in the rest of the state.
    The New York Wage Board voted unanimously for the increase, which would cover some 180,000 workers statewide and affect fast-food chains with 30 locations or more in the United States.
    The three-member board was formed at the behest of Governor Andrew Cuomo in May after the state legislature turned down his proposals for minimum wage increases for most workers.
    Its decision does not need legislative approval, but requires approval by the state labor commissioner, which is expected.
    "It is repugnant to the concept of a minimum wage to say that this $9 wage is what we had in mind. Franklin Delano Roosevelt started the minimum wage, and he said it is a wage that doesn't just allow you to subsist, but to live a decent life. You cannot live and support a family on $18,000 per year in the state of New York, period. That's why we have to raise the minimum wage," said a beaming Cuomo at a jubilant rally in New York City celebrating the vote. "Because when New York acts, the rest of the states follow."
    With the federal minimum wage at $7.25 an hour since 2009, labor and religious groups have pressed state and local governments to enact pay raises as their hopes dim for an increase by the Republican-controlled U.S. Congress.
    Last month, Los Angeles set its minimum wage to rise from $9 an hour to $15 by 2020, affecting some 600,000 workers.
    Seattle and San Francisco also have increased minimum wages in recent years.
    A statewide wage increase for fast-food workers as opposed to city-based would be a first, said the National Employment Law Project, a nonprofit advocacy group.
    The rise to $15 an hour marks a major step from New York's current minimum wage of $8.75.
    On the streets of New York, reaction to the measure was mixed.
    "I think it's great. I think it will lift a lot of people out of poverty. I think you also have happier employees, more motivated employees. I know that given the fact that they're paid such a low wage, I see that the quality in the customer service isn't always great. I guess there are some concerns on what it could do to the broader economy, you know, raising prices. But I do think putting more money in working class people I think is never a bad thing," said Paul.
    "Everything is up, inflation and everything. They need to get 15 dollars an hour," said Ms. Henry.
    Sixty percent of New York's fast-food workers rely on some form of public benefit to supplement their earnings, according to the Fiscal Policy Institute.
    The increase would be phased in, taking effect by the end of 2018 in New York City and by July 1, 2021, in the rest of the state.
    Not everybody thought the wage increase was a good idea.
    "I believe in market wages and markets set the wage and it shouldn't be set by the government, necessarily. And then you start driving people to education and you get a better population that way. Instead of subsidizing their lifestyle, choosing not to continue education, then you are making that okay. We are heading towards idiocracy, if we're not careful, right. We're dumbing our society down. I'd rather see, instead of giving them the money, send them to school. Don't make it a 15 dollar wage where they can spend it on whatever they want. Make it an education tax where part of the employees wages go towards sending them off to community college, or public service, or make them Rotarian, just anything that will better the society, instead of just pumping money," said Kyle, who is a small business owner.
    Business groups and other critics slammed the decision as discriminatory because it singles out one industry, and legal challenges are expected.
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