Our economy depends on consumerism. As costs and prices rise, the economy will slow.
Re: openings in the hospitality businesses…l
There are also former restaurant and hotel workers who used the pandemic time to retrain for other jobs. In addition, in some places, the back of house has been where COVID breakouts have occurred…some aren’t ready to do that even if vaccinated.
We know someone who worked at a very high end restaurant that just closed. It wasn’t suitable for carry out or delivery. At $200-$300 for a meal for two, it just wasn’t possible. So…they closed. The staff at that place has all found jobs outside of the restaurant business. They were sad to do so…because they really liked this place.
So…now that more people are traveling and going out to eat, places need to replace employees who have moved on for any number of reasons.
2 Likes
One of a number of recent news articles on this very subject.
1 Like
Indeed, for the farm, hospitality, and construction industries, having a labor force that is readily available (meaning plentiful enough to keep pay levels down) but unauthorized (meaning much less willing to complain to the government about violations of labor laws) makes them easily exploitable – a convenient thing for those employers.
8 Likes
And those workers are made readily available by our government.
1 Like
For 2020, based on 2019 full year incomes, $31,200 was about the 36th percentile individual income, 27th percentile individual income for those working 30+ hours per week, 24th percentile individual income for those working 40+ hours per week, and 22nd percentile household income in the US. See Income Percentile Calculator for the United States and Household Income Percentile Calculator, US - DQYDJ and Household Income Percentile Calculator, US - DQYDJ .
Or even the median household income in the region that they live (which is invariably one that they describe as having a “high cost of living”).
2 Likes
Probably at least in part due to lobbying by those industries. They presumably strongly resisted any attempts to mandate E-Verify use for them (which would have greatly reduced the hiring of unauthorized immigrants and removed the incentive for unauthorized immigration). Deportations, walls, etc. are great theater for certain types of politics (and helpful for those industries in making unauthorized immigrants more fearful of seeking government help in enforcing labor laws), but did not actually reduce the supply of unauthorized immigrants willing to work by enough to matter for those industries.
1 Like
E-Verify is now available in all 50 states and is mandatory for all federal employers and contractors. Currently over 750,000 employers are enrolled in the E-Verify program.
Is E-Verify mandatory?
For most employers, E-Verify is voluntary and the overwhelming majority of the nation’s 18 million employers do not participate in the E-Verify program.
By law, E-Verify is mandatory for the federal government, as well as federal contractors and subcontractors. In addition, 24 states have passed laws to require employers utilize E-Verify to varying degrees. Seven states have E-Verify laws that require all or most employers to use E-Verify including Arizona, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Utah.
https://www.businessinsider.com/kroger-closing-los-angeles-stores-hazard-wage-laws-2021-
5 Likes
Those states with E-Verify requirements for all employers (as opposed to a definition of some employers that does not include most agriculture, hospitality, or construction employers) do not appear to be states where agriculture, hospitality, or construction are relatively big industries, with lobbying power to match. Probably not a coincidence.
That also tends to fly under the radar (just as those industries want it), because immigration politics usually becomes race/culture war politics that result in a lot of theater but not much actual change in the status quo of unauthorized immigration.
I’m pretty sure Kroger closed those stores merely as a statement. As a company they earned more than enough even allowing for pandemic costs to share with their workers if they cared enough.
They chose what they wanted. We chose never to shop at Kroger again - anywhere - and they used to be one of our favorite stores when we were in their territory (like where FIL lives). Now we know their true colors.
3 Likes
The stores Kroger closed here in SoCal were not doing very well anyway. They couldn’t handle the higher wages and still be profitable. You can’t expect stores that are not making money to stay open when the lease and maintenance and insurance still need to be paid.
5 Likes
I definitely can expect a company that is earning a ton of money for its top employees and shareholders to do what is right in a pandemic.
I’m doubtful they weren’t making money in those stores. They may not have been making what they consider enough profit for their greed - but then it goes back to who is earning how much?
Employees working through the pandemic, esp when there was no vaccine, deserved more than those at the top or shareholders. Even if Kroger had to take a loss on those stores (again, I doubt this), they had more than enough excess profit (more than other years) to have done so. They just showed they don’t care at all about workers - only their own pockets.
That doesn’t match our personal values at all - hence - our choices.
9 Likes
I don’t believe in a national minimum wage due to COL differentiation. My state is currently $12 but on its way to $15. It should be up to the states.
Also, both my kids have worked at restaurants. They have always made about $20/hour (barring a snowstorm shift) for bussing or hostessing. It’s not a bad salary for what they do. Can it support a family? Probably not. But is every job required to do that?
2 Likes
Every full time job should be able to at least support a single person living alone, imo. If it’s 10 hours a week, the worker should be earning 25% of the cost of rent, food, etc. in that neighborhood.
10 Likes
Just a friendly reminder to please refrain from politicizing this thread. It is on slow mode for now and will be reviewed in the morning. Thanks for your cooperation.
I know three former restaurant workers. None of them can go back to that profession right now. One of them got a much better job. Two of them have children learning at home with no access to childcare. Even if they could afford that additional expense, there is just none available. I imagine there are many thousands of former restaurant workers in the same situation.
10 Likes
I’m glad to see this thread reopen. I think it’s an important topic and I enjoy reading differences of opinion.
6 Likes
Here is an article about this problem in the Boston area - Boston Restaurants Are Reopening, But a Staffing Shortage Looms