When Real Life Intrudes on Fantasy

December 22, 2008 RSS Feed Print

This I love, courtesy of the Syracuse Post-Standard:

Ten weeks after a Syracuse City Court judge found that Murbro Parking was required to pay a "living wage" to workers who staffed city-owned garages, the employees are tired of waiting for answers.

In November, they started earning the $13.11 per hour required by the living wage law enacted in 2005 to keep workers under city contracts out of poverty.

But a week later, the employees experienced a less welcome change -- their 40-hour workweek was cut back to 35 hours. Managers' hours were cut, too. One manager said the result was a reduced paycheck, after overtime was eliminated and regular hours were cut below 38.

"How is that helping us get out of poverty?" one garage employee wondered. "It's giving us one thing and taking something else away. Why are they hurting us?"

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Economics is not a matter of a "world view." If labor is more expensive, there is incentive to use less of it. Obviously. If you are forced (illegally) by government to raise your wages, you are going to find any way you can to keep your labor costs down by scheduling fewer hours.

brett of OR 12:43PM December 22, 2008

Jimmie "loves" this because he thinks it validates his world view. It doesn't. These hours would have been cut no matter what the wage level. Employers simply do not buy more hours of labor than they think they need.

of 9:47AM December 22, 2008

Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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