Working Washington, an affiliated organization of the AFL-CIO that advocates for a $15 minimum wage, has set its sights on Yakima. Today, the group organized a rally in Yakima as a means to launch a $15 minimum wage campaign, calling for Yakima’s “agricultural, fast food and other entry-level-wage workers to join them in demanding the same $15 wage as workers in Seatac.”
As the Washington Policy Center points out, “Yakima workers already enjoy one of the nation’s highest ‘real’ minimum wages after adjusting for the city’s low cost of living.” In fact, according to a report by SmartAsset, Yakima has the third highest “real” minimum wage in the nation. Adjusted to the cost of living, Yakima’s current minimum wage of $9.47 is equal to $9.69 in purchasing power. The Washington Policy Center,
“In fact, three cities in Eastern Washington occupy the top three spots for U.S. cities with the highest “real” minimum wage. Kennewick tops the list at number one, with Spokane coming in second.”
A $15 minimum wage in Yakima would certainly prove damaging to the city’s economy. Yakima’s unemployment rate is 6.8%, a high figure when compared to the state’s unemployment rate of 5.3%. The Washington Policy Center,
“Forcing employers to pay a $15 minimum wage will not encourage employers and entrepreneurs to create more jobs. It will, of course, do the opposite. Employers will look for ways to offset the artificially high labor costs—by increasing prices, reducing workers’ hours and benefits, or automating. A plethora of studies have made this correlation, finding the greater the wage hike, the greater the negative impact on employment, especially for the lowest skilled workers. Of course, that does not even take into consideration the unquantifiable number of jobs that will never be created because would-be business owners decide it just isn’t worth it given such high labor costs.”
It’s unclear whether or not Working Washington would like to include an exemption for labor unions in Yakima. Considering it is a big labor affiliated group, it’s safe to bet exemptions are in the works. The $15 minimum wage is, after all, about unionization (as SEIU 775 President David Rolf admitted).
A $15 minimum wage in Yakima would certainly prove damaging to the city.
Before you traffic in yet more speculation, how about showing us all of the economic damage the $15/hour minimum wage has done to Seatac?
As the Washington Policy Center points out, “Yakima workers already enjoy one of the nation’s highest ‘real’ minimum wages after adjusting for the city’s low cost of living.” In fact, according to a report by SmartAsset, Yakima has the third highest “real” minimum wage in the nation. Adjusted to the cost of living, Yakima’s current minimum wage of $9.47 is equal to $9.69 in purchasing power.
And yet, the Washington Policy Center’s state office remains well within Seattle. (Why, it’s almost like they’re saying there’s more to business decisions than the local minimum wage!)
Tensor, the Washington Policy Center may well be in the middle of a long term lease that could cost thousands to get out of. THAT may very well be part of the business decision you refer to. Of course, you didn’t think this through before writing your post. By the way, I was talking to a business associate earlier this week who said a friend was in the process of closing his Seattle bar, solely because of the minimum wage.
…he Washington Policy Center may well be in the middle of a long term lease that could cost thousands to get out of.
It may be true that the WPC did such a bad job in negotiating a long-term lease that even in Seattle’s current white-hot real estate market, their landlord gets more money from a non-profit than it could from re-leasing the property to a for-profit business. While the WPC may indeed be that incompetent, I didn’t have any evidence one way or the other, which is why I left it at general speculation. (Another speculation: the operators choose to remain in Seattle because the quality of life is higher here than it is in the less-regulated parts of our state.)
By the way, I was talking to a business associate earlier this week who said a friend is in the process of closing his Seattle bar, solely because of the minimum wage.
He should sell it. The number of active business licenses for restaurants in Seattle has been rising all year, so this is the market to get a great price for selling such a business.
Tensor, your response is almost incoherent regarding lease rates and moving to another area of the state. You, of course, have every right to spin as many nonsensical theories as you want; the reality is it’s more likely they negotiated a lower lease rate In a slower economy and are getting a good deal compared to today’s white hot market. You’re also suggesting the executive committee of the board (seasoned business owners and others in the finance industry) who very likely would have been involved or at least aware of the lease, were in this area. I’m assuming you did your homework before writing your post. Did you notice Kemper Freeman is on the board? You think he would have allowed this organization he volunteers for to get fleeced? I don’t think so either.
I’m not aware of any local nonprofits who relocate their staff to a less regulated part of the state solely to save a little on lease rates. Thousands or tens of thousands of dollars of relo expenses for each staff member, of course, would far exceed any lease savings. Your comment regarding this suggests you’re not familiar with how business works, and likely have never had to meet payroll at the end of the month.
Your comment is especially puzzling since virtually all board members live in the same area as its main office and it of course wouldn’t be cost beneficial for them and staff to travel for board meetings, pay mileage, meals, lodging, etc. You’re aware, of course, that this alone would more than offset any lease savings. Another dead giveaway that you’re ignorant as to how business works. This isn’t a slam, I’m ignorant (not knowledgeable) in engineering, physics, and other areas, so I understand if you don’t have a working knowledge in the area of business and that’s OK.
What is the exact source of the numbers you cite for the number of Seattle restaurant business licenses? You mention this number has been rising all year, which implies you’re monitoring the monthly number. I’d be interested to look at the original source cites for these numbers also, it would be interesting.
Tensor, your response is almost incoherent regarding lease rates and moving to another area of the state.
Who said anything about moving? Their web site lists an office in Olympia, which is where most policy in Washington state gets made. I find it amusing they’re maintaining a redundant office in an expensive city whilst giving everyone else unsolicited advice on how to make public policy work better.
You, of course, have every right to spin as many nonsensical theories as you want; the reality is it’s more likely they negotiated a lower lease rate In a slower economy and are getting a good deal compared to today’s white hot market.
You’re the one who implied I should have speculated on this point, and you’re certainly free to criticize the results of my following your advice, and to offer your own speculations; but please remember none of our speculations have any factual support whatsoever.
I’m not aware of any local nonprofits who relocate their staff to a less regulated part of the state solely to save a little on lease rates.
But this nonprofit exists to sell the idea of greater economic efficiency via less government regulation, while they maintain a redundant office in one of the most heavily regulated cities in the state.
… I understand if you don’t have a working knowledge in the area of business …
Your point might carry a bit more force if the “working knowledge” you’ve here demonstrated consisted of something more than speculative leaps based on un-validated assumptions.
What is the exact source of the numbers you cite for the number of Seattle restaurant business licenses?
The data is tracked and collated by Barry Ritholtz. As luck would have it, his latest post has a tracking chart and some discussion of the data behind it. It’s a good read.