Business

20% Minimum Wage Hike In Ontario Hiked Causes Mysterious Outcome

Published

7 years ago

January 9, 2018

(Via Zerohedge)

Minimum wage hikes, and the inevitable job losses that result from them, are a consistent topic of conversation for us…here are just a couple of recent examples:

Seattle Min Wage Hikes Crushing The Poor: 6,700 Jobs Lost, Annual Wages Down $1,500 – UofW Study
Study Finds Higher Min. Wages Bring Crushing Job Losses For Female And Minority Workers
Harvard ‘Shock’ Study: Each $1 Minimum Wage Hike Causes 4-10% Increase In Restaurant Failures

Of course, no amount of empirical evidence (or common sense for that matter) will ever be sufficient to convince left-leaning politicians that basic economic concepts governing the relationship between supply and demand also apply to the market for labor. No, in the mind of politicians, every business ever created is an evil corporation owned exclusively by “millionaire, billionaire, private jet owners” who earn infinite profits and will casually accept whatever minimum wage hikes or tax increases are thrown at them…

That said, here in the real world, competition prevents corporations from earning excess profits (at least for an extended period of time anyway) and businesses respond to higher labor costs through capital investments designed to reduce labor (think ordering kiosks at McDonald’s) and/or other cost cutting initiatives.

In fact, for the latest example of the unintended consequences of higher minimum wages, one has to look no further than a pair of Tim Horton’s franchises in Ontario, Canada. Faced with a 21% hike in minimum wages starting January 1st, with hourly rates going to $14 from $11.60, owners of the two restaurants said they had no choice but to cut employee benefits and eliminate paid breaks to offset their higher costs. Per the Financial Post:

Employees at the Tim Hortons locations owned by the children of the co-founders of the franchise say they have reduced employee benefits and cut back paid breaks to help offset Ontario’s $2.40 jump in hourly minimum wage.

Jeri Horton-Joyce and Ron Joyce Jr. wrote a letter to employees at their two Tim Hortons restaurants in Cobourg, Ont., that those who want to continue receiving dental and health benefits will have to pay a portion of the plan’s costs themselves. Those working at the restaurant for more than five years will have to pay half, while those working from more than six months to five years will pay 75 per cent.

Employee breaks will also no longer be compensated, the letter dated December 2017 read. For example, those working nine-hour shifts will be paid for eight hours and 20 minutes, while those on three-hour blocks will be paid for two hours and 45 minutes.

“We apologize for these changes,” the letter, widely circulated on social media, read. “Once the costs of the future are better known we may bring back some or all of the benefits we have had to remove.”

The alternative would be for the franchises to simply raise prices to offset their higher cost structure, which they did not, demonstrating how little confidence in pricing power businesses have despite the constant media cheerleading about the “coordinated global recovery.”

Discussions about economic stability aside, such efforts only seem to further undermine the relative profitability of small businesses versus larger national chains and drive lower volumes as fewer people can afford to eat out.

The minimum wage hike and other new franchisee costs, like vacation pay, have put Tim Hortons franchisees in “a difficult situation,” said a statement from the GWNFA’s board of directors.

The GWNFA, whose membership hit half of all Canadian Tim Hortons franchisees last October, said its goal is to mitigate job losses.

But without help from their parent company in lowering food costs, raising prices and reducing couponing, the association said franchisees have been forced to take steps to protect their business.

“While other competitors have received concessions from their franchisors, unfortunately our chain has not,” the GWNFA said. “Many of our store owners are left no alternative but to implement cost-saving measures in order to survive.”

Conclusion: Keep up the good “Fight for $15”, Bernie; it seems to be working really well.

Business

MAGA: From Shopping Mall to Manufacturing Hub 2.0

Published

4 months ago

March 15, 2024

Pepe Jones

Title: America’s Transition: From Shopping Mall to Manufacturing Hub 2.0

In the past few decades, America has often been described metaphorically as a giant shopping mall or auction house, where consumption and commercialism have dominated the landscape. However, with the rise of the Trump administration and the ambition to “Make America Great Again,” a new vision is emerging—one that aims to transform the nation into the world’s greatest manufacturing hub ever seen, leveraging AI, blue-collar labor, and a combination of innovative technologies.

The shift from a consumer-driven economy to a production powerhouse signifies a strategic move towards self-sufficiency, economic resilience, and global competitiveness. This transformation is not merely about revitalizing industries of the past but embracing cutting-edge technologies and sustainable practices to redefine the future of manufacturing.

At the heart of this evolution lies the integration of artificial intelligence (AI) into manufacturing processes. AI-driven automation streamlines production, enhances efficiency, and reduces costs, enabling American manufacturers to compete on a global scale. By harnessing the power of machine learning and predictive analytics, businesses can optimize supply chains, minimize waste, and customize products to meet diverse consumer demands.

However, the vision for America’s manufacturing renaissance extends beyond technological innovation. It embraces a diverse workforce, blending the traditional blue-collar skillset with the expertise of engineers, data scientists, and software developers. This fusion of talent creates a dynamic ecosystem where creativity, problem-solving, and collaboration drive continuous improvement and sustainable growth.

Moreover, the resurgence of American manufacturing is not confined to a single sector but encompasses a broad spectrum of industries, from automotive and aerospace to electronics and renewable energy. By leveraging cross-disciplinary expertise and fostering strategic partnerships, the United States can position itself as a global leader in advanced manufacturing, setting new standards for quality, innovation, and sustainability.

One of the key strengths of this manufacturing transformation is its adaptability and resilience. In contrast to the volatility of global markets and supply chains, a robust domestic manufacturing base provides stability and security, mitigating risks associated with geopolitical tensions, trade disputes, and natural disasters. By decentralizing production and embracing local sourcing, America can reduce its dependence on foreign imports and safeguard its economic sovereignty.

Furthermore, the transition towards a manufacturing-centric economy aligns with broader societal goals, such as job creation, workforce development, and regional revitalization. By investing in vocational training programs, apprenticeships, and re-skilling initiatives, the United States can empower individuals from diverse backgrounds to thrive in the digital age and secure meaningful employment opportunities in the manufacturing sector.

As America embarks on this journey towards manufacturing excellence, it must also prioritize sustainability and environmental stewardship. By embracing eco-friendly practices, renewable energy sources, and circular economy principles, manufacturers can minimize their carbon footprint, reduce waste generation, and preserve natural resources for future generations.

In essence, the vision of America as the world’s greatest manufacturing hub represents a paradigm shift—one that transcends partisan politics and embraces a collective aspiration for progress, prosperity, and shared prosperity. By harnessing the transformative power of AI, blue-collar ingenuity, and interdisciplinary collaboration, the United States can reclaim its status as an industrial powerhouse and pioneer a new era of manufacturing innovation on the global stage.

As the nation embarks on this ambitious journey, it must remain steadfast in its commitment to inclusivity, sustainability, and technological leadership, ensuring that the benefits of the manufacturing renaissance are felt by all Americans and resonate across borders, shaping a brighter and more prosperous future for generations to come.

Business

Outrage As Robinhood CEO Confesses To Elon Musk: DTCC Shut Down Stocks In Gamestop; AMC Surge

Published

3 years ago

February 2, 2021

Populist Wire Editorial Board

Did Congressional authority allow DTCC to help defraud middle-class investors buying Gamestop and AMC?

The CEO of Robinhood admitted to Elon Musk that the DTCC – The Depository Trust & Clearing Corporation – halted trading during a call Monday morning on the Clubhouse app.

Proof: https://youtu.be/K2CEImKce6s

This is not the first time this has happened…

2008 case: https://casetext.com/case/pet-quarters-v-depository-trust-clearing

Sound familiar?

This appears to be Pet Quarters having the same issue Robinhood has today. When Pet Quarters took it to court, the courts said something along the lines of: f*** you, don’t ever come back here (citing technicalities).

Why did they win? Well, DTCC is given the authority by Congress to regulate despite technically being a private organization

There’s more – “To date, except for one case where DTCC’s dismissal motion is pending, all of the cases either have been dismissed by the courts or withdrawn by the plaintiffs.”

Proof: https://boards.fool.com/federal-court-dismisses-lawsuit-against-dtcc-24179123.aspx

Every AG in the country should be made aware of these facts and open investigations into the matter.

Why does Congress get to deputise a private organization as eco-hitmen for the market?

UPDATE (2/3/20 5:09 AM):

(Reuters) – Robinhood Chief Executive Vlad Tenev is expected to testify before a U.S. House committee on Feb. 18, Politico reported on Monday, citing people familiar with the matter.

The hearing before the House Financial Services Committee has not been formally announced, the report added

Culture

#AdiosAmerica: Republicans (with Democrats) Are Selling Out America to Corporations to Decrease Living Standards

Published

5 years ago

July 14, 2019

Populist Wire Editorial Board

Since the turn of the 20th century, living standards became an important, almost central part to the progressive and labor movements of those times. Now it has become a mainstream of both parties to sell out your labor to lowest bidders in low and high paying jobs. Low paying jobs are being taken by low-wage immigrants protected by Democrats and the high-end jobs are brought in by bi-partisan means, and greatly boasted by Republicans.

This effort has crippled the middle-class for close to 30 years now and with the job market being already tightened by the looming threat of A.I., importing more workers, whether legal or illegal is decreasing the value of labor in America for each and American Citizen. Corporations and Businesses, who rely on keeping employee costs as low as possible generally don’t complain about these practices across the board, why would they?

Americans have an increasingly difficult task ahead of them with the mass illegal migration at the Southern Border but also the legal importation of immigrants through H1-b1 Visas. These challenges will increasingly change the look, heritage of this country. There is no incentive for either Government or Business to care about reigning in immigration to the benefit of the American worker, the bottom dollar line will look better anyways.