Tuesday, April 19, 2016

Minimum wage wave pushes all the wage brackets

Public sector unions intend to push up all the wage brackets based on the new minimum wage law. This is called self adaptive statistics.   The unions will push the wage brackets up before Jerry can cry monkey's uncle, and local municipal hiring will freeze.  Jerry Brown is stuck, California unemployment rate is rising fast and soon.
The Sacramento Bee story proves that the state’s public employee unions will use the increase in the minimum wage at the bottom-rungs of a pay scale to push for across the board wage increases for most public employees.  And they will likely get it, given how public compensation practices work for public agencies in California.
During the New York public celebration, New York state’s AFL-CIO President Mario Cilento said, “When we raise the floor in wages, we raise the ceiling.  Those of you making 16 or 17 or 18 dollars an hour, the net time your union goes to negotiate, they’re going to ask for 19 and 20 and 21 dollars and up!” according to the Sacramento Bee report. (New York also raised its minimum wage)
J.J. Jelincic, a CalPERS board member and former state labor union president and negotiator confirmed that this “will certainly be the strategy for government unions in California,” according to the Bee report.
“My experience is that when you raise the floor, it creates tremendous pressure for raises at least a few rungs up,” Jelincic told the Bee.
There are an estimated 12,000 state employee from custodians to office assistants who earn $15 to $20 per hour, states the report.
The state firefighters union says the “ripple effect of higher minimum wages should flow all the way up the ladder at Cal Fire,” according to union spokesperson Terry McHale.  Otherwise, the state risks “compaction,” which occurs when wages for jobs that carry less responsibility get too close or even overtake salaries for higher positions with more responsibility.

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