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LA Labor Unions want exemption from new $15 minimum wage

Discussion in 'BBS Hangout: Debate & Discussion' started by Mr. Clutch, May 27, 2015.

  1. Mr. Clutch

    Mr. Clutch Contributing Member

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    Weird and hypocritical considering they campaigned heavily in favor of it.

    http://www.latimes.com/local/lanow/la-me-ln-los-angeles-minimum-wage-unions-20150526-story.html

    L.A. labor leaders seek minimum wage exemption for firms with union workers

    Rusty Hicks, head of the Los Angeles County Federation of Labor, says firms with unionized workers should have the "freedom" to set their own pay rates. (Glenn Koenig / Los Angeles Times)
    By PETER JAMISON, DAVID ZAHNISER AND EMILY ALPERT REYES contact the reporters Unions Los Angeles City Council Mike Feuer

    Labor leaders want exemption from L.A. minimum wage law for companies with union workers

    Labor leaders, who were among the strongest supporters of the citywide minimum wage increase approved last week by the Los Angeles City Council, are advocating last-minute changes to the law that could create an exemption for companies with unionized workforces.


    The push to include an exception to the mandated wage increase for companies that let their employees collectively bargain was the latest unexpected detour as the city nears approval of its landmark legislation to raise the minimum wage to $15 an hour by 2020.

    For much of the past eight months, labor activists have argued against special considerations for business owners, such as restaurateurs, who said they would have trouble complying with the mandated pay increase.


    But Rusty Hicks, who heads the county Federation of Labor and helps lead the Raise the Wage coalition, said Tuesday night that companies with workers represented by unions should have leeway to negotiate a wage below that mandated by the law.

    "With a collective bargaining agreement, a business owner and the employees negotiate an agreement that works for them both. The agreement allows each party to prioritize what is important to them," Hicks said in a statement. "This provision gives the parties the option, the freedom, to negotiate that agreement. And that is a good thing."

    Coalition representatives said the proposed exemption would ensure the city complies with federal laws which they say give collective bargaining agreements precedence over local ordinances. They also contend that it would keep L.A.'s ordinance consistent with previous city wage laws.

    Some business leaders criticized the proposal, however, calling it ironic in light of union leaders' past opposition to special considerations for some employers.

    "I'd refer everyone back to the statements of labor leaders over the past seven months that no one deserves a sub-minimum wage," said Ruben Gonzalez, senior vice president for public policy and political affairs with the Los Angeles Area Chamber of Commerce, which opposed the minimum wage increase passed by the City Council.

    Gonzalez said the change sought by labor officials could pressure companies into letting employees unionize as a way to seek relief from the mandated wage hike.

    "Once again, the soaring rhetoric of helping the working poor is just a cover for city government acting as a tool of organized labor," he said.

    The City Council voted last week to gradually increase the hourly minimum wage to $15 over the next five years. Since then, City Atty. Mike Feuer has prepared an ordinance that would put the increases into effect. The council's Economic Development Committee is scheduled to review the language on Friday.

    Last fall, the council approved an ordinance increasing the minimum wage at large hotels to $15.37 per hour. That law says that provisions of the hotel wage hike may be waived in workplaces that have collective bargaining agreements.

    Copyright © 2015, Los Angeles Times
     
  2. bnb

    bnb Contributing Member

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    how very bizarre.

    unionize to get a lower wage? and a precedent for carving out exemptions for the min wage. seems short sighted.

    I wonder whether this is a widely held LA union position or an outlier click bait opinion?
     
  3. DonnyMost

    DonnyMost not wrong
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    They helped make the bed (and rightly so, a much needed change), they should have to sleep in it.

    Regardless, I can't see any good reason they should be granted an exemption.
     
  4. SamFisher

    SamFisher Contributing Member

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    I don't really see anything that wrong with saying people should either get a set minimum wage or collectively bargained for benefits & wages.

    both of these tend to be helpful for labor.
     
  5. JuanValdez

    JuanValdez Contributing Member

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    I can see some rationale here -- nonunionized workers don't have representation, so they rely on government to provide a minimal, blanket protection. But union workers do have representation so they are not at a disadvantage at the bargaining table and can make choices (like taking low wages) that is custom to their circumstances.

    And maybe there's strategy here to use the laws to reward employers for encouraging unionizing. That might be a better outcome for workers than a minimum wage because the union can optimize bargaining to ensure people are employed, have good work conditions, etc, and perhaps give up a little on wages for it. Still, it introduces a big principal/agent problem. Especially in California which isn't a right-to-work state. Unions run the risk of being captured by corporate interests and signing sweetheart deals exempt from regulatory scrutiny. Union stuff is complicated, so I'm not sure how I feel about it all.
     
    1 person likes this.
  6. Rocket River

    Rocket River Member

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    Me either. I think we poke too many holes and exceptions into some laws
    and rules that they become useless

    Hell . .. . it is the reason our Tax Code is a fricking nightmare

    Rocket River
     
  7. Air Langhi

    Air Langhi Contributing Member

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    I am not a fan of unions that pull stuff like this.
     
  8. Rocket River

    Rocket River Member

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    Basically . . .. . sounds like RIGHT TO WORK type things was marginalizing the Union's power
    So they pushed this law through
    NOW if they can get exemptions . . they have power again . . .and it forces Corp back to the bargaining table.

    Rocket River
    It's about the POWER
     
  9. bnb

    bnb Contributing Member

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    ...and money. Union dues add up.

    My experience with low wage union jobs has not been good. So I'm suspect of this move.
     
  10. JuanValdez

    JuanValdez Contributing Member

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    My one union experience was a good one. I was in Chicago and accepted a summer job changing light-bulbs (seriously) for $7/hr. But, when I showed up on Day 1, I was told that it had been determined that this job fell under the union contract and I had to be paid $8.41/hour.
     
  11. bnb

    bnb Contributing Member

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    under this California proposal your pay rate experience might have been reversed ;).
     
  12. Remii

    Remii Member

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    1. If minimum wage goes up it will make it more expensive for businesses to hire unskilled workers, so hiring skilled and high paid union workers may become more attractive...

    2. If minimum wage goes up there may be businesses that cut their workforce and some businesses that would have to close down if they have to pay $15 an hour (unless they can hike up the prices of their services/products)... This allows union workers to negotiate for less which would make them more attractive to businesses.

    That union is banking on if/when minimum wage goes up it will give their high and low paid workers advantages in the labor pool and also may draw more people to the union ---> Which = more fees. Nobody does nothing for nothing... If you see a group supporting something, look to see how it benefits them.
     
  13. Bandwagoner

    Bandwagoner Contributing Member

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    It makes them relevant in a world where the actual government is providing all of the things they used to provide.
     
  14. Dairy Ashford

    Dairy Ashford Member

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    Unions negotiate for things other than base wages, maybe this gives them more flexibility.
     
  15. Rocketman1981

    Rocketman1981 Member

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    It's pretty obvious that they want to encourage more employers to
    Unionize and make more Union fees, even if people at those companies
    Are paid less than they advocated was the lowest wage possible.

    It's a smart move to push fast food companies and large retailers to
    Allow Unionization which will allow them to pay less than $15 per hour but
    The union grows and makes more money.

    Pretty sneaky and crooked in my opinion.
     
  16. Cohete Rojo

    Cohete Rojo Contributing Member

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    Or does this just mean the unions can "negotiate" a higher pay rate? I mean, if the union workers received a pay raise due to minimum wage laws, that means the unions cannot receive fees/dues because they were not the ones "negotiating" the pay raise, right?
     
  17. Major

    Major Member

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    I don't think there should be an exemption for a variety of reasons, a major one being that unions don't/can't always do what's in the best interest of all their members, and if the union is weak, the workers can get screwed.

    But that said, I don't really see why businesses are opposed to this? In the current version of the law, businesses have a $15 minimum wage. In the union-proposed version, businesses can choose between a $15 minimum wage OR allowing unionization. If they prefer the $15 minimum wage, they can always just stick with that.
     
  18. JuanValdez

    JuanValdez Contributing Member

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    For the worker, I think we're better off just have a simple minimum without exceptions. Some workers may find their advantage in having the exception, but it just has too much potential for exploitation and corruption. A simple wage rule will give the worker some certainty.

    If the union is for it, maybe they should be against it?
     
  19. Mr. Clutch

    Mr. Clutch Contributing Member

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    Bcause they don't like either the $15 min wage or unionization.
     
  20. Remii

    Remii Member

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    Because if a business is not in position to pay their employees $15 hour they will be forced to hire union workers and not all businesses want to deal with unions... And if a person is willing to work for $12-$13 an hour they will be forced to join a union and not all workers want to be a part of a union.

    Rather good or bad this would give unions more power.
     

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