New York State To Raise Minimum Wage – The minimum wage for workers in fast-food restaurants in New York State is to rise to $15 per hour. This comes after a recommendation from the Fast Food Wage Board, a three-member panel made up of representatives from business, labour and the public. There will be a gradual increase from the current statewide minimum wage of $8.75 over the coming years, reaching $15 by the end of 2018 in New York City, and by 2021 for the rest of the state.
The move follows a number of cities around the United States that have implemented their own local minimum wage, while the national minimum sits at just $7.25. Andrew Cuomo, the Governor of New York State, who has been a long time supporter of raising wages of those earning the least, tweeted, “This is one of the really great days of my administration”, and claimed that New York’s actions would be a catalyst for change around the country. However, not everyone feels so positive about the move.
The usual cries of “Raising the minimum wage will lead to higher prices and a spike in unemployment” are not the most prominent criticisms this time around. Rather, the challenge is coming from more progressive sides, claiming that the move does not go far enough. Bill De Blasio, the mayor of New York City, said, “As much as fast food workers need and deserve a raise – and we know they do – we must ensure that every worker gets a living wage.” The law is leaving behind a vast number of workers in jobs such as retailers, production lines and, of course, non fast-food restaurants.
Applying this new minimum wage only to specific workers not only causes problems for implementation and enforcement of the law, but creates an almost two tier system between the lowest paid workers in society. Suddenly somebody working full time at Foot Locker receiving the so-called minimum wage, will be earning $3-$4 an hour less than the man or woman flipping burgers in the McDonalds across the street. Critics of this argument will claim that the competition for work generated from this law will lead to wage increases all round. That is the same ‘competition’ often used as a reason for not needing a minimum wage in the first place.
The United States does look to be heading in the right direction – although moving rather slowly – on this issue, at least at the local level. But, as Governor Cuomo says, “When New York acts, the rest of the states follow.” If true, that can only be a good thing for the lowest paid workers in the country. Well, at least those who work in fast food.
