Nuns on the Bus visit RI


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2016-07-23 Nuns on the Bus 2683The Nuns on the Bus came to Providence Saturday night as part of a 13 state tour that ended at the Democratic National Convention in Philadelphia. At each stop, the Nuns held meetings where concerned residents could share their concerns about a range of topics – including tax justice, living wages, family-friendly workplaces, access to democracy, healthcare, citizenship and housing. These meetings were held under the general title of “Mending the Gaps” and the discussion points and concerns from each meeting are to be delivered in Philadelphia.

The Nuns arrived at St. Michael’s Church in South Providence to the music of the Extraordinary Rendition Band and St. Michael’s own drummers.

During the discussions the Nuns learned about the obscene child poverty rates in Rhode Island, the criminality and disconnect of many of our elected leaders and our state’s support for the fossil fuel industry and the environmental racism such support entails. The meeting filled the basement of St. Michael’s.

From Providence the Nuns headed to Hartford, Scranton and Newark before arriving in Philly on  July 26. You can follow their progress here.

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Citing lack of action on minimum wage, Regunberg declines pay increase


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Aaron Regunberg
Aaron Regunberg

Today I declined a cost of living adjustment increase to my legislative salary, and committed that I will not take a raise until Rhode Island raises the minimum wage for all low-income workers.

I recognize this is an entirely symbolic move, and in fact that it is a particularly tiny symbol, considering how minuscule this legislative salary increase is (it’s real, real small). And I support the COLA on principle – in fact, I think that the (comparatively) low compensation for state legislators in Rhode Island is a significant barrier keeping a lot of Rhode Islanders from serving in elected office, particularly low-income Rhode Islanders whose voices we desperately need in the General Assembly. But as a legislator, I do not personally feel comfortable taking any cost of living adjustment knowing that Rhode Island’s lowest-paid workers have not received any adjustment.

It is past time for our state to declare that no Rhode Islander that works full-time should live in poverty. Our current minimum wage is a starvation wage, and too many Rhode Island families are struggling to get by on this inadequate pay. We need a LIVING wage, which is why I support the Fight for $15, and why I will continue working to increase our minimum wage and refuse future salary increases until we are at least on par with our neighbors here in New England.

Speaker: No minimum wage increase this year


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Budget BriefingSpeaker Nicholas Mattiello said that though he “is very supportive of raising the minimum wage,” and that Rhode Island “needs to be competitive” with our neighboring states, he has, “heard from the business community” that they need time to absorb the current wage before increasing it again. Mattiello said that the minimum wage has gone up four years in a row and, “I’ve indicated that we’re going to look at it next year.”

Massachusetts currently has a $10 minimum wage and they are going to $11 in 2017. Connecticut has a $9.60 minimum wage and will go to $10.10 in 2017. Rhode Island’s minimum wage of $9.60 will remain in effect until at least 2018, making our state an outlier. Speaking at a community event in Providence last night Governor Gina Raimondo expressed some disappointment that the 50 cent increase in the minimum wage that she had proposed was not in the budget.

Douglas Hall, Director of Economic and Fiscal Policy at the Institute, had this to say:

We are disappointed that the house budget does not include an increase to the state’s minimum wage. Increasing the minimum wage to $10.10 would have raised the wages of 78,000 Rhode Island workers. What businesses in Rhode Island need most are consumers with disposable income–the real ‘job creators’–to buy their goods and services. A $10.10 minimum wage would have given our lowest income workers an additional $27 million in wages. While we are happy to see a slight increase to the Earned income tax credit, the research shows that coupling both an EITC increase with an increase in the minimum wage reduces poverty and boosts the economy.

“And while we hate to see Rhode Island’s minimum wage workers fall further behind neighboring Connecticut and Massachusetts, the real concern is that every year we do not increase the minimum wage, we’re effectively cutting the wages of our lowest income earners, as inflation eats away at their already inadequate wages. More than a quarter of those who would have benefited from an increase to $10.10 have children, and more than a quarter are married. One in five Rhode Island children have a parent who would have seen an increase in wages. Instead, a full-time, year-round worker earning the Rhode Island minimum wage will see the buying power of their $19,960 eroded by inflation. With one in five Americans living in a jurisdiction that’s on a path to a $15.00 minimum wage, Rhode Island families working hard for low-wages are being told they have to wait.”

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Wage inequality worsened in 2015, despite real wage gains


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Economic Policy Institute logoWage inequality continued its rise unabated in 2015, according to a new report from EPI senior economist Elise Gould. In Wage inequality continued its 35-year rise in 2015, Gould analyzes real (inflation-adjusted) wage trends in 2015 and shows that, while real wages increased across the board, wage growth was faster at the top of the wage distribution than the bottom—the gap between top earners and the typical worker continues to grow.

Due to a sharp dip in inflation, real hourly wages grew for all workers in 2015. However, falling inflation is unlikely to be a source of durable wage gains in the future. Growth in nominal (non-inflation adjusted) wages has not accelerated, and there is no evidence to indicate that the Federal Reserve Board should raise interest rates in an effort to slow the economy and ward off incipient inflation.

“It’s no surprise that typical workers are frustrated with the economy since wage growth has been slow for so long,” said Gould. “Real wage growth in 2015 is welcome news, since it means workers’ standards of living increased. However, this comes with two large caveats. First, wage inequality showed no sign of slowing down last year. And, meanwhile, relying on falling inflation is an unwanted and unsustainable strategy for increasing living standards.”

The strongest wage growth in 2015 occurred among men at the top of the wage distribution and women at the bottom of wage distribution. Men’s wages at the 95th and 90th percentiles grew by 9.9 percent and 6.2 percent, respectively, compared with only 2.6 percent at the median. Low wage workers, meanwhile, saw greater wage gains in states that increased their minimum wage. Women’s wages at the 10th percentile, which are lower than men’s at the bottom decile and therefore may be more likely to be impacted by changes in the wage floor, grew 5.2 percent in states with legislated minimum wage increases, compared with only 3.1 percent growth in states without increases.

[From an Economic Policy Institute press release]

Increasing Rhode Island’s minimum wage and expanding the state Earned Income Tax Credit (EITC) boosts the economy, helps thousands of Ocean State families


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Figure 1_Declining 20th Percentile Wages

The Governor’s Budget Article 13 increases the minimum wage to $10.10 next year and expands the state earned income tax credit from 12.5 percent to 15 percent of the federal credit (the Governor indicated an interest in further expanding the EITC pending available resources following the mid-year revenue forecast). Senator Goldin and Representative Slater have each introduced bills ((S 2156 and H 7347, respectively) to further increase the EITC to 20 percent of the federal credit. Lawmakers have made real progress in these two areas over the past two years and we are pleased to see a commitment to raising the labor and living standards of our workers going forward.

These two measures are particularly important in light of the persistent decline in Rhode Island’s low wages since 2000, and the gap between low wages in Rhode Island and those in Connecticut and Massachusetts, evident in Figure 1.

Research shows that coupling an EITC increase with an increase in the minimum wage has a greater impact on reducing poverty than either does on its own. This finding contradicts those who point to one approach as superior to the other in helping low-wage workers make ends meet.  Both, together, have maximum beneficial impact. Using these policies together also requires that businesses and our government both play key roles in boosting incomes for workers in low-wage sectors, which is both fair and practical.

Today, minimum wage workers do not earn enough to meet basic needs.  The Rhode Island Standard of Need, a study that documents the cost of living in the Ocean State, shows that a single adult needed to earn $11.86 per hour in order to meet his or her most basic needs in 2014.

EITC Table 1

As seen in Table 1, Rhode Island currently significantly lags its neighbors, Massachusetts and Connecticut, in the size of state EITC, and will fall behind Connecticut (and even further behind Massachusetts) for the minimum wage, unless the Rhode Island minimum is increased to at least $10.10 in 2017. Both of our neighboring states have steadily increased their minimum wages in recent years.

EITC filers pay payroll taxes, sales and property taxes, the car tax, gas tax.  Even with the increase in the state EITC to 12.5%, Rhode Island still has one of the highest effective tax rates on low-income households, when looking at the combined state and local taxes – 7th highest among all states. The EITC is the best way to provide some targeted tax relief to those who need it most.

Compared to our neighboring states, families in the bottom quintile (bottom 20 percent of family income) pay 12.4 percent of their income in state and local taxes, compared with 10.0 percent in Massachusetts, and 10.6 percent in Connecticut. Increasing the RI EITC helps close this gap modestly – a 15 percent EITC in Rhode Island would lower bottom quintile taxes to 12.2 percent, and a 20 percent EITC would lower it to 12.0 percent, according to recent analysis by the Institute on Taxation and Economic Policy, evident in Figure 2. (Higher sales and excise taxes in RI account for much of the current gap).

Figure 2_RI EITC options vs MA CT

Putting more money in the pockets of workers will also put more money in the cash registers of local businesses. Raising the minimum wage to $10.10 would put nearly $27 million in the pockets of 78,000 Rhode Island workers in low-wage jobs, money that would flow quickly into the local economy.

Raising the minimum wage and the EITC are important steps that lawmakers can take to help ensure that workers are able to keep their heads above water in the Ocean State, and to keep the Rhode Island economy on a path to full economic recovery.

Increasing minimum wage reduces public assistance costs


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2015-11-10 Fight for $15 011As corporations achieve extraordinarily high profit levels and executive pay reaches new heights, wages in certain sectors are so low that even those who work full time must rely on government assistance to make ends meet. A new report from EPI economic analyst David Cooper finds that raising wages for low-wage workers will significantly reduce government spending on public assistance, making billions of dollars a year available for improvements to other anti-poverty programs.

“When employers pay wages so low that working people have to turn to public assistance to make ends meet, they’re effectively receiving a subsidy from taxpayers,” said Cooper. “Policies that raise wages would free up resources that could then be used to strengthen anti-poverty programs or make investments in any number of other policy priorities. The simplest way we can do this is by raising the federal minimum wage.”

The majority (66.6 percent) of individuals and families who receive public assistance work or are in a family in which at least one adult works. This number grows to 71.6 percent when focusing on recipients under the age of 65. More than two-thirds (69.2 percent) of all public assistance benefits that go to non-elderly families go to families in which at least one adult works.

If the bottom 30 percent of wage earners received a $1.17 per hour pay raise, more than 1 million working people would no longer need to rely on public assistance. For every $1 that wages rise among these low-wage workers, spending on government assistance programs falls by roughly $5.2 billion. Because this estimate is conservative and does not include the value of Medicaid benefits, it has the potential to be even higher.

Other findings from the paper include:

  • Raising the minimum wage to $12 by 2020 would reduce public assistance spending by $17 billion. These savings could be used to make improvements other anti-poverty programs, such the President Barack Obama’s proposal to expand the national school lunch program to provide food for children during the summer months.
  • Workers in the arts, entertainment, recreation, accommodation, food services, and retail trade industries are disproportionately represented among public assistance recipients.
  • Roughly 60 percent of all workers making less than $7.42 per hour receive some form of government-provided assistance, either directly or through a family member.
  • More than half (52.6 percent) of workers paid between $7.42 and $9.91 per hour receive public assistance, either directly or through a family member.
  • Nearly half (46.9 percent) of all working recipients of public assistance work full time.

[From a press release]

The minimum wage is a moral outrage


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mcdonalds“The worker deserves his [or her] wages.”
– Apostle Paul (1 Tim 5:18)

Let’s get real. Any adult working for $7.25 an hour is being exploited, and the $9.60 Rhode Island minimum beginning January 1, 2016 also falls far short of being just.

Ask any Haitian garment worker: Survival requires servitude—-even if paid a scandalous 64 cents an hour.

Slavery is forced labor which legally rescinds all freedoms. A poverty wage is wage slavery, legally allowing employers to pay wages which eliminate many freedoms: The freedom to obtain decent housing; the freedom to take a paid vacation or sick day; the freedom to spend time with children; the freedom to retire; and, for some families, even the freedom to eat every day of the month.

Of course, the minimum wage promotes at least one freedom: The freedom to work two or three jobs.

The Declaration of Independence speaks eloquently to the minimum wage, stating that the Creator endows us “with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

How can a person experience Life when their work is punished with poverty? How can a person experience Liberty when unjust wages impose soul-crushing limitations? How can a person pursue Happiness with the drudgery of constant work? Are Life, Liberty and the pursuit of Happiness truly today’s “unalienable Rights”?

Living Wage Benefits Many

Two practical arguments win the day for a minimum wage which is a living wage. First, a raise stimulates the economy because minimum wage workers spend virtually all they receive. For example, with a raise to $10.10, the Economic Policy Institute estimates the boost in Gross Domestic Product would support the creation of 85,000 new jobs.

Second, a raise also decreases government spending to assist minimum-wage workers. Think corporate welfare. Government’s indirect subsidies to unethical businesses cease when a living wage is mandated.

The most pertinent argument for a living wage is moral. As the Apostle Paul wrote: “The worker deserves his [or her] wages.”

I recently heard a politician cynically argue we could raise the minimum wage to $50. This logical fallacy is absurd. Similarly, we could argue for a minimum wage of three dollars. Of course, the minimum wage should be the legally permissible minimum enabling a decent life.

Some opponents maintain the minimum wage is for training teenagers. To the contrary, the Department of Labor reports 88 percent are at least age 20. Moreover, even a single adult requires $11.86 an hour to escape poverty.

At least $12 an hour—and a benefits package which includes health insurance, vacation time, sick time and retirement pay—would provide a living wage. Indeed, the Institute for Policy Studies estimates that if the 1968 minimum wage was adjusted for income growth and inflation, workers would receive $21.16. The U.S. permits 34% of this wage.

Pols Opposing Minimum Wage

This prompts the question: Who is responsible for this repugnant impoverishment of workers? The answer is straightforward. While raises are frequently passed when Democrats are in charge, Republicans blocked all raises during the 16 years of the Ronald Reagan and George W. Bush administrations.

In what moral universe do these politicians live?

The jargon of plutocrats and pols tell the story: They cite ‘capitalism’ (meaning the choice of those with capital to fleece workers); they cite ‘the free market’ (meaning misers seek freedom from regulation so they can pay paltry wages); and they cite ‘supply and demand’ (meaning employees are priced the same as goods and services—-ignoring the requirements for Life).

Worshipping at the altar of unregulated capitalism justifies treating people as property. Isn’t this the very definition of slavery? What a crude and callous obscenity.

Want to make a difference? Encourage your RI Senator and Representative now to introduce a living wage bill this January. You can identify your state legislators at https://sos.ri.gov/vic. Oppose the moral outrage of today’s slave labor with a demand for wise and caring justice.

Rev. Harry Rix is a retired pastor and mental health counselor living in Providence, RI. He has 50 articles on spirituality and ethics, stunning photos, and 1200 inspiring quotations available at www.quoflections.org. ©2015 Harry Rix. All rights reserved.

RI cost of living easily outpaces minimum wage


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Cost of Living CalculatorA “single-parent, with an infant (age 0-1) and a school-aged child (age 6-12) needs to earn $62,693 a year or $30.14/hour to cover the basic expenses required to raise a family in Rhode Island,” says the Economic Progress Institute, (EPI, formerly The Poverty Institute) a nonpartisan research and policy organization dedicated to improving the economic well-being of low- and modest-income Rhode Islanders. “More than one-fourth of that family’s expenses will go towards child care; a whopping $1,446 a month.”

The EPI released this sobering news along with an updated version of its Cost of Living Calculator, designed to provide “a more realistic measure of economic security than the commonly used federal poverty level (FPL) which measures economic security based on the cost of food,” according to a press release. “The Calculator allows users to see what it costs families of different sizes to pay for housing, child care, health care, food, transportation and taxes and then calculates the pre-tax (gross) income they need to meet their expenses.”

Rhode Island’s recent move to raise the minimum wage from $9 to $9.60 is not nearly sufficient says the EPI, since a “single adult without children needs to earn $24,640 a year or $11.85/hour to meet his or her basic needs.”

In addition to the Cost of Living Calculator, the EPI also publishes a “comprehensive ‘Guide to Assistance’ explaining the government assistance programs and community resources available to help individuals and families meet basic needs including food assistance, tax credits, and child care subsidies which can all help lower-wage working families make ends meet.”

“We hope these tools serve to better educate the public and policymakers about the cost-of-living in the Ocean State and the importance of government assistance programs for the large number of Rhode Islanders working in low-wage jobs” said Kate Brewster, executive director of the Economic Progress Institute, in the press release. “Many people often don’t realize they are eligible for help paying for basic needs like child care and food.  We encourage Rhode Islanders who are struggling to pay the bills to review the Guide to see if they qualify for assistance.”

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Corporate welfare for billion dollar hotel chain in Providence


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DSC_4041
Councillor Sabina Matos

Lost in all the discussion surrounding the reformation of Tax Stabilization Agreements (TSAs) in Providence is the fact that a multi-billion dollar resort hotel chain is an intended recipient of Rhode Island taxpayer’s largess.

TSAs are enormous breaks on property taxes negotiated by the City Council as an incentive for businesses to locate in the city. This week the Providence City Council is expected to vote on a package of TSAs that will clear the path for the so-called “meds & eds” project on part of the I-195 land.

The Providence Journal reported that included in the I-195 land life-science park proposal is “a Le Meridien hotel with 175 rooms and 10,000 square feet of meeting space.”  The Le Meridian is to be operated by Starwood Hotels and Resorts, a company that regular reports cash flows of approximately $850 million to $950 million a quarter. Starwood runs 1,200 hotels and resorts, and paid dividends to their investors to the tune of $2.4 billion last year.

Under the new TSAs, “projects over $10 million will be eligible for a 15-year tax stabilization agreement that will see no taxes in the first year, base land tax only in years 2-4, a 5% property tax in year 5 and then a gradual annual increase for the remainder of the term.”

In essence, Providence will be giving away millions of dollars to billionaires.

In return, the “agreements include women and minority business enterprise incentives as well as apprenticeship requirements for construction and use of the City’s First Source requirements to encourage employment for Providence residents.”

DSC_4038Unfortunately, Finance Chair Igliozzi has declined to deliver on the suggestion he made last year when he said that companies that pay less than $15 an hour should not receive tax breaks from the city.

Igliozzi has not responded to a request for comments.

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‘Nothing to do with race’ – a House debate on tiered minimum wage in 5 minutes


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45 minutes of the June 2 RI House debate on a minimum wage bill compressed into less than 5 minutes. Rep. Pat Morgan, a Coventry Republican, suggested making two minimum wages – and used statistics of unemployed people of color to justify the idea. This didn’t go over well with reps. Joe Almeida and Ray Hull, who are both Black.

 

101 things I’ve done (and do) at 2.89 an hour…


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1. Carried cases of beer for myself,three high, through a crowd.

2. Cleaned for an entire shift: snow storm.

3. I claim all my tips. No one will give you an apartment or credit if you don’t show income.

4. Forced to “close the bar” and to pay the sitter for overnight hours. I finish the day up about 30 dollars. This was my “money shift”.

5. Served the manager drinks while I do his job.

6. Moved full kegs. Many, many full kegs and Co2 canisters (they’re as tall as I am).

7. I listen to people when they’re sad, which happens a lot when people rely on alcohol to manage their stress and emotions. Listening and empathizing is often part of the job.

8. Inventoried and processed liquor orders.

9. Restocked an entire bar. Every shift.

10. “Cashed out” an entire waitstaff. Most shifts. Not in my job description.

11. Accepted Crumpled up money thrown over the bar onto the floor as a tip.

12. Customer says he’s a “producer”. Asks me to turn around and see my “rear” in not so polite terms before he orders. I neither do nor say anything.

13. Manager brags about running a “brothel / escort service” in college. I do nothing.

14. Busy day at the bar. Customer grabs drinks over the fruit tray, smashing it. I get gashes across my knuckles and bleed everywhere. No one asks if I am okay. I tape them and keep working.

15. I cut off a customer who has arrived drunk from another venue. He pees on the “service area” of the bar.

16. Man grabs my arm, I twist away and scowl, but otherwise do nothing.

17. Owner grabs me forcefully by the back of the neck to show me where a switch is. I don’t tell him that’s not my part of my job. I do nothing.

18. Owner splits up my tips. Strangely, I leave with less than when I counted it two hours before. When I make a fuss, they cut my shifts.

19. Manager tells me I’ll get a great recommendation if I quit. I do not sign the paper he hands me, knowing I might need unemployment. My son is about 2 years old.

20. I close the bar by myself, at 3 AM. I put the cash in the safe, and set the alarm. Every shift. No extra pay.

21. There are many rubber floor mats here. They are all very heavy and about 6’ by 3’. I carry all of them, covered in filth, to the kitchen, where I clean them myself. Every shift.

22. I tear my rotator cuff setting up the bar. An accident. I do nothing. I don’t have health insurance. It still hurts occasionally, years later.

23. You can still smoke in bars. I clean stacks of ashtrays, some with gum. There are maybe thirty of them.

24. I roll silverware. Enough to fill about a dozen shoeboxes.

25. I pay a sitter ten dollars an hour, so when I get to work, I’m already at least sixty dollars in the hole.

26. On my feet all night. I close the bar at 3 am and get up to feed my son at 6 a.m.

27. When people say “You’re too smart for this job. Why don’t you go back to school?”, I think, “What makes you think I haven’t?” but say nothing.

28. I memorize customers drink orders on the fly. I’m pretty good. I can remember groups of about 8-10 at a time, depending on how busy it is.

29. Manager tells me I had a really great sales day. Like, the best of the past few weeks. Feeling good, but don’t get a raise or bonus.

30. The “Service Bar” tape is going crazy. I make pitchers of margaritas hand over fist for hours. The servers only tip us out maybe 10-15 dollars a piece. They make 2.89 an hour too. We have to tip out barbacks 15-20% to keep them happy. We tip out the bussers and expediters as well. Tips are stretched thin.

31. I run Keno slips. No one tips me on those unless they win, which is not frequent. It makes a lot of money for the bar, as I understand. It’s time consuming and makes me no money and takes away from my service.

Tipped Minimum Wage Press Conference

32. I wash dishes. A lot of dishes. I scrub lipstick from glasses.

33. I wear a uniform that is sexually degrading. It’s a “referee” outfit that says “#69” on it. I make good money here, so I do it anyway, even though it embarrasses me. I can’t bend over without exposing my underwear. This is a new “uniform” and wasn’t what I signed up for.

34. Senior bartender tells me I’m shit, and I cry. I don’t know what to do. People are yelling at me. I’m only 19. Women (and servers in general) are forced to be competitive in this environment.

35. I get burned expediting food. It’s my own fault, I think. Even though the manager practically threw the plate at me.

36. Underage waitress comes into the restaurant and is physically and verbally abusive to me, because she is drunk. I complain. She’s friendly with management. They make her a bartender. I have to find another job; this is ridiculous.

37. I book the shows, and live bands for the nights I work. It brings in a little crowd on an otherwise dead night. I get no extra pay for this.

38. I listen to my boss, the owner, talk about how upset they are about their personal life even though it’s really inappropriate.

39. I make “bar food”. We have a mini-fryer and a pizza oven. I’m a bartender-cook now, I guess. Maybe we’ll make more tips. I hope. We get no extra pay.

40. Every week, I do a “deep clean” on my slow shift. I pull out the keg coolers and mop and sweep behind them, I take out every single beer from every cooler behind the bar. Clean every shelf. Anything that can be touched by human hands, I spray cleaner on. It helps pass the time. No one comes here when it rains, except for a few friends. I will break even today.

41. I slice bags upon bags of lemons and limes for the bartender following me. It takes a long time. We help each other out.

42. I come into work, even though I’m really sick. My manager says it’s my job to cover my shifts.

43. I pick up an extra shift, Yay! The manager just phoned me. Someone just called out. I guess in some special cases the manager will find shift covers.

44. We’re open every day, rain or shine. Everything is closed in the “blizzard”, I’ll walk the two miles, I like hiking and snow. Maybe it’ll be fun, even though I won’t make any money.

45. I have an abusive relationship with a co-worker. I get fired a few months after asserting that I feel threatened. He does not.

46. There is a refrigerator for condiments that needs restocking. I refill ramekins of mayonnaise, and other sides. It takes me about 20 minutes. One of my many chores. Part of the job is helping out. The servers need these things ready for the next shift.

47. I refuse to wear a t-shirt that says “Check Out My Rack”. That’s not a funny joke to me. I’m getting tired of this.

48. I’m not receptive to a customer’s vulgar come-on. He calls me a “dyke”, and I walk away, otherwise doing nothing.

49. Customer says, “How much for a smile?” I squeeze out a grin even though it’s the tenth time I’ve heard that this week, and it’s not funny anymore. It makes me feel dirty. I’m not smiling because I had to push my way through a crowd to get to you. I am 20.

50. I get a really big tip. I’m psyched, because we were overstaffed this week, and rent is almost due.

51. Customer repeatedly orders a “Smirnoff and Vodka”. I try and clarify because that’s not an actual drink order and customer calls me a “(expletive) idiot”. I brush it off.

52. Not a lot of tips because I’m working a “techno night” where everyone is high on “party drugs” and drinks 5 dollar bottled water all night. I restock the cases of water.

53. I get fired for refusing to work a show in conflict with my personal beliefs against racism and homophobia. The owner says it’s a “no-show” even though I told him far in advance.

54. Not trying to insult me, a customer says, “You must love this job. It’s so easy.” People who have never done it don’t really know what it’s like, or how little they have to pay us. I wish it was just chatting and being friendly; that would be great.

55. I keep a few babysitters, and family members on “standby” for childcare. I don’t know what my schedule is going to be, and I can’t say no to a shift, or I get a warning or suspension. Say no multiple times, and you get fired. I can’t afford that.

56. I buy my own uniforms.

57. I hide my superior’s drug use.

58. I memorize the daily specials, and push for extra sales. We have meetings about “up-selling”, and I’m generally pretty good at it.

59. I make just enough money to still qualify for SNAP, or food stamps, because the cost of living is so high in the city of Providence. My rent consumes about 70% -90% of my income, sometimes more, in the years I live here. I borrow money. I get roommates. My family helps me. What do other people do to get by?

60. I can’t afford a car. I walk to work. Providence is a great walking city.

61. My co-workers and I hang out after work. We vent and swap stories. Camaraderie really seems to get us through tougher shifts.

62. I set up sound equipment for the music tonight. I do not get extra pay.

63. I work well into my pregnancy. The comments about my body (some from superiors) really upset me and I say nothing.

64. I have morning sickness, and run to the bathroom frequently during my shift. Not sure if I’ll make any money tonight. Not sure what I’m supposed to do.

65. I think about one of my favorite elementary school teachers. She waited tables on the weekend, and was a lovely, intelligent woman. I think about her especially when people say things like “Stupid people are stuck waiting tables”, or when people insult my intelligence for being a server.

66. I carry 16 gallons of orange juice down two flights of stairs.

67. Stood on a ladder and dusted cobwebs. I am in my ninth month of pregnancy.

68. A dishwasher quit mid shift so I washed all the dishes in the restaurant.
No extra pay.

69. I worked for 55 hours in one week and was only paid for 39.5 hours because my boss didn’t want to pay time and a half (it would have still only been $4.36 an hour before taxes).

70. A coworker sexually harassed me in front of a crowd of people.

71. I was called a “retard”.

72. I was called a “cunt”.

73. I was told to “(expletive) off”.

74. Served a patron who had his penis out of his pants during moments of his
meal.

75. I worked holidays, my child’s birthday, my birthday, and every
mother’s day.

76. I was sexually harassed and propositioned by friends of my superiors.

77. I was told if I didn’t like it to “get a real job” when I asked for more
than 2.89 an hour.

77. Since becoming an advocate, I’ve been told by strangers that poor people like
me should just die.

78. The air conditioning breaks at work. It’s over 90 degrees in here.

79. No lunch break, ever.

80. I pulled a muscle while lifting a heavy bus bucket. Kept working.

81. Slipped on butter and smashed my face into the tile floor. Finished my shift with a bloody nose.

82. Came into work to cover someone else while having contractions from pregnancy.

83. Turned down unsolicited dates, while smiling, and still doing my job.

84. Wouldn’t let patrons in after close. Got called a “bitch” for doing my job.

85. Been a full-time student and made the Dean’s List. People still assume I’m lazy and uneducated.

86. Cleaned a rotting mouse out of a sticky trap behind my bar. Got told, “Clean it yourself.”

87. Got left drugs as a tip. I don’t do drugs.

88. I was forced to pay for tabs that were walked out on, even though I was told not to take credit cards as collateral on lunch shifts.

89. Had a drink thrown at me by a customer who had had enough to drink and was cut off.

90. Broke up a fight. Held a towel over the bleeding man’s forehead.

91. Used my personal time to promote for the business that employed me.

92. Too busy to take a break, and we’re not allowed to eat behind the bar, so I eat my food cold at close to last call. I got here at 11 AM, so I’m desperately hungry.

93. Spent my own money at the business that employs me. I’m a customer, too.

94. During the lunch shift, a customer (a doctor) says, “See, a girl like her is good girlfriend material.. busy and grateful. Wouldn’t get in the way of the wife.” Like I wasn’t even in the room. I did nothing.

95. Re-organized the walk-in and made sure nothing was past code or spoiled.

96. Didn’t fake sick to get out of work, but couldn’t get time off for being sick even if I was. I try to never miss work.

97. I don’t like karaoke. But when I worked a karaoke night, I did it anyway to give the customers a good laugh.

98. Danced with one of my customers on his birthday. We have become good friends, and we both like jazz.

99. Struggled to pay my bills. Though I’m thankful for my customers, I wish they knew how their tip really pays my hourly wage for my boss.

100. A family member died this week. I go to work and tell no one how upset I am. We’re supposed to “keep that shit at home”.

101. I met a lot of wonderful people, hard-workers, and friends at work. I think we deserve to make at least minimum wage. But we don’t. Our labor is paid $2.89 an hour.

A higher minimum wage means better economy for all


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The minimum wage in Rhode Island has risen every year since January 2013 and 2016 will be no different, moving up from $9 to $9.60 per hour. The measure passed on the floor of the state Senate in a 34-3 vote, and will soon be enacted into law. But as each year passes, the income gap in Rhode Island only grows larger, even with the minimum wage increases.

Voting against the increase were Republicans Nick Kettle, of Coventry, Mark Gee, of East Greenwich, and Elaine Morgan, of Ashaway.

Graphic courtesy of the Center on Budget and Policy Priorities
Graphic courtesy of the Center on Budget and Policy Priorities

A study from 2012 conducted by the Center on Budget and Policy Priorities (CBPP) showed that from the 1970’s to the mid-2000s, the income gap has grown 70 percent. The poorest 20 percent of Rhode Islanders have only received a 11.8 percent raise in their household incomes, while the richest 20 percent have seen their income grow 99 percent.

In Connecticut and Massachusetts, the percentages are even more disconcerting. The poorest 20 percent of MA residents have seen no change in their income since the 1970s, but the richest 20 percent have had a 151.9 percent increase. Connecticut’s poorest residents have even seen a drop in their income by 4 percent since the 1970s, and a 9.8 percent drop in the past decade, more than both Rhode Island and Massachusetts.

How did this even happen? Kate Brewster, the executive director of the Economic Progress Institute, believes that trends have lead to the widening income gap.

“Our economy has shifted so dramatically,” she said. Brewster stated that over the years, Rhode Island has seen a move from the manufacturing to the service industry, as well as a decline in unionization among employees. These factors have lead to a decline in the minimum wage’s value.

Senator Erin Lynch (D-District 31), the sponsor of the legislation, said the move to $9.60 is a step in the right direction, even though she originally wanted $10.10.

“I would have loved for it to be $10.10,” she said. “I think any step forward is a good step forward.”

Lynch also added that even though raising the minimum wage is definitely a part of eliminating income inequality, it’s not the only piece of the puzzle.

“We want to continue moving in the direction we’re moving. There’s no one magic bullet. We’re working on all kinds of different things.”

RI State Senate floor
RI State Senate floor

Other pieces of the economic puzzle include workforce development, access to capital, and education. Lynch believes that those together can help to level out incomes in the state, especially because they will be able to help those who are providing for their families. Outside of the state house, Lynch works as a divorce lawyer, and sees the hardships that low wages can take on the family unit.

“I see a lot of parents. I see a lot of people getting second and third jobs. People are doing what they need to do to support their families,” she said.

Currently, Rhode Island has one of the highest minimum wages in the country, but will soon fall behind states like Massachusetts, California, and Washington, DC, as they move their wages upwards of $10 an hour going into 2016.

“An adult needs close to $12 to meet their basic needs,” Brewster said. “$10.10 would have been great, but $9.60 is better than $9.”

Lynch stated that she will continue working to move the state economy forward. Hopefully that means a brighter, more equal future for everyone in Rhode Island.

“This is home,” Lynch said. “We want to make it the best place it can be.”

Labor Sec. Perez supports raising min wage, eliminating tipped min wage


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labor secretary verdict 002
U.S. Labor Secretary Tom Perez

U.S. Labor Secretary Tom Perez came out in strong support for both raising the minimum wage and for eliminating the tipped minimum wage during a press Q&A at the end of his visit to Gold International Machinery with state Senator Gayle Goldin and US Representative David Cicilline on Friday afternoon. The Secretary was enthusiastic about the economic benefits of raising the minimum wage for both workers and the economy.

“I was recently in Seattle on the first day of the effective date of the new minimum wage in Seattle,” said Perez, “the person who stood right next to me, in addition to the mayor that day, was the head of the Seattle Restaurant Association.”

According to Perez, Seattle “has had the highest minimum wage in the country over the last twelve years, and they have no tipped credit.” He added, “If the opponents were correct, then every time you fly to Seattle, you ought to bring a bagged lunch, because all the restaurants should be going out of business.”

Perez also talked about raising the regular minimum wage, saying that while he and President Obama, “don’t pretend to know what the best wage is for the city of Seattle or the state of Rhode Island… we applaud efforts to go as high as possible.”

The secretary added that “as a result of the low minimum wages across the country we’ve seen a consumption deprived recovery in many circles.”

“When you raise the minimum wage, guess what happens?” asked Perez, “If you’re a restaurant, people have more money to spend. When you raise wages, guess what happens? The economy gets better. We consume more things from manufacturers so places like Gold [International Machinery], they see their business go up.”

Here in Rhode Island there are General Assembly bills currently before the Senate and the House to gradually eliminate the tipped minimum wage. There are also bills to raise the regular minimum wage from $9 to $10.10. At hearings held to discuss the bills, representatives from the Rhode Island Hospitality Association, including Chairman Bob Bacon, have opposed any increases in the minimum wage with questionable economics and threats of robots.

Governor Gina Raimondo, who Labor Secretary Perez seemed to like quite a bit based on comments he made earlier in the day, has called on the General Assembly to raise the minimum wage to $10.10. She has yet to publicly support the elimination of the tipped minimum wage.

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Home care workers squeezed by inconsistent messaging/policy


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Screen Shot 2015-04-09 at 10.36.09 AMSince two-thirds of minimum wage earners are women, Governor Gina Raimondo says that raising the minimum wage to $10.10 is an important way to help women and their families in Rhode Island. But Nicholas Oliver, executive director of Rhode Island Partnership for Home Care, Inc., a group that advocates for the home health care industry here in Rhode Island, says that the governor is “being a bit disingenuous, and we’ve seen that her messaging is a bit inconsistent.” More than 88 percent of home health care workers are women, and Raimondo’s budget isn’t helping them.

The governor is “saying that she wants to be an advocate for home care,” continues Oliver in a phone conversation, “particularly with this working group Reinventing Medicaid, but frankly we haven’t seen her put her money where her mouth is. She put into her budget proposal last month a freeze on home health care for another consecutive fiscal year.”

In testimony before the Senate Labor Committee hearing on the $10.10 minimum wage, Oliver explained that “Medicaid home and community based service rates have been frozen for the past seven consecutive fiscal years. However, much of that last rate increase in 2008 was rescinded the following fiscal year due to state budget constraints. So what we’re really talking about is 13 years since a rate increase…”

Medicaid reimbursements for home health care services are $17.68 an hour in Rhode Island. In addition to the worker’s salary, that money has to cover insurance, licensing, utilities, compliance and other expenses. “Many of our direct care staff, CNAs and home makers are earning wages at or slightly above the minimum wage. At current reimbursement rates we cannot afford to provide them a wage that is adequate, let alone competitive to their counterparts in nursing homes and hospitals that have received increases by the General Assembly almost every year.”

Medicaid reimbursements for similar services in Connecticut and Massachusetts are $24.40 and $24.64. “Why would someone work for minimum wage in a position that requires licensing by the Department of Health, continuing education to maintain that licensure, perform services that include toileting, bathing and feeding patients, at the same wage as someone working in retail or hospitality?” Oliver asked the Senate Committee, “The job market is responding with a resounding ‘no’ as many provider industries are having trouble hiring and maintaining direct care staff to fill the growing need for these services by Medicaid beneficiaries.”

The problem in finding workers for the money available is especially acute outside Providence, in places like southern Rhode Island and Woonsocket. Many workers are simply crossing the border into neighboring states where the money is better.

“We don’t want to oppose increasing the minimum wage,” says Oliver, “We’re really disappointed that the governor is proposing to increase the minimum wage and wants to be an advocate for minorities and women and single parents, but at the same time her message is inconsistent when it comes to health care because she’s saying, ‘Let’s increase wages for these folks, but not you, even though you’re a representative of the same work force I try to advocate for.’”

In her 2016 budget proposal, Governor Raimondo has suggested a 3 percent cut to nursing homes and a 5 percent cut to hospitals. The Reinventing Medicaid working group will issue its report and suggestions for additional cuts later this month. You can view Oliver’s testimony before the Senate Labor Committee below:

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Business owner: Restaurants can absorb reasonable tipped minimum wage increase


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Rhode Islanders who want to see both the regular and tipped minimum wage increased by the General Assembly this year should take note of those businesses and business associations that oppose raising the wage and consider spending their money at businesses that truly have the best interests of their employees at heart. It’s all too easy for business owners to say, “I love my employees.” It is harder and more significant for business owners to truly advocate for the economic well being of their employees.

Rue

Deborah Norman has owned and operated restaurants in Rhode Island for over 38 years. Currently she owns Rue De L’Espoir on Hope St. and Rue Bis on South St., both in Providence. She has 30 employees between the two restaurants. Norman spoke before the Senate Committee on Labor in support of increasing the tipped minimum wage, an effort opposed by the Rhode Island Hospitality Association and other business lobbying groups.

“While I can only speak for myself and my two restaurants,” said Norman, “it’s difficult for me to imagine that my experience is so abnormal as to be incomparable to that of many other restaurants in our state.”

“An increase in the sub-minimum wage would benefit women, men, families and the economy as a whole,” said Norman, “I wanted to reach out personally as a restaurant owner and explain why I am confident that my restaurants could absorb a reasonable rate increase without a negative impact to my business.”

Norman agreed that an increase done too quickly and too steeply might have disastrous effects, but an “incremental but significant change” could be dealt with. “For example, if Rhode Island were to raise the tipped minimum wage by $1 per year, for three consecutive years… my restaurants would have no problem adapting.” Norman did not think the slight price increase and minor menu “tweaking” she would do to accommodate the change would be noticed by her customers.

“In my opinion,” said Norman, “the biggest difference would be that 20,000 workers in our state would have more money in their pockets, putting them in a better position to actually come out and eat in the restaurants they may even work in.”

“By legally raising the tipped minimum wage across the board, no single business would have to worry about being at a competitive disadvantage.” This is significant, said Norman, because she already pays many of her workers at rates above the tipped minimum wage. She does this because she wants to be fair to her employees, but it puts her restaurant at a competitive disadvantage “because I know that competing restaurants might not act similarly. Raising the sub minimum wage would provide an even playing field.”

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Tip high and tip often, someone’s economic security depends on it


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tipsThere are two minimum wages in this state, as in many states. There’s the one you always hear about that applies to almost everyone and every job, which is around $9.00/hr. right now. Then there is the other one, for the people who didn’t have a strong-enough lobby when the minimum wage bill was first written and subsequently modified. They are mainly restaurant servers – waitresses and waiters. Their minimum wage is currently $2.89/hr. in RI. Hence, it is referred to as the sub-minimum wage, or as I like to call it the substandard minimum wage.

Legislation heard last night would raise the sub-minimum wage to be equal the minimum wage over four years, so that in 2020 the sub-minimum wage would effectively be eliminated for servers.

Some of the Big Issues

How does one live on $2.89/hr.? They don’t. The idea is that tips make up the difference between $2.89 and $9.00, and current law in fact states that owners must add to servers’ income whatever is necessary to bring $2.89+tips up to $9.00. For that matter, how does anyone live on $9.00/hr.? Again, they don’t. That’s way below the poverty line. But that’s another story.

Note that tips are supposed to reward good work, above and beyond what is required of the server. At least, that was the original intent, but now they are formally part of ‘regular’ wages. I’ll bet most patrons do not know that. I didn’t.

Does anyone else see a problem with this? Like, what about all of the slow nights when there are hardly any tips? Even including the good nights the typical server’s income is nothing to write home about.

Many numbers for the actual average server wage, including tips, were tossed around last night. About $8.50/hr. seems to be the most believable. But wait: weren’t servers guaranteed to get $9.00/hr.? Unfortunately some wage theft and other unscrupulous practices occur in some restaurants. But, again, I digress.

Another problem: in order to get decent tips, a server has to suck up to her patrons. The servers that look the best, smiles the most, and doesn’t complain, make the most. If you don’t want to fit this picture, tough. Like it or get another job. Several restaurant owners at the hearing actually said things like this.

There is a LOT more to this, which others have or will addressed.

Observations on Dubious Observations

1) One of the senators on the committee hearing the bill asked: If there are thousand(s) of servers in RI, and they support the bill, why aren’t they all here testifying tonight?

  • Comment: (We ignore the ludicrousness of this question in the first place.) As a testifier pointed out, most servers have to be at work by 4 PM (that was about when the hearing started). But OK, putting that to one side, by the same reasoning, there are hundreds of restaurant owners in RI, why weren’t all of them there last night? After all, they don’t have to start at 4 PM, the servers (and others) are handling the work at their restaurants.

2) Many of the owners took personal offense at the testimony of the supporters of the bill. Many talked of their staff and themselves as “family.” I have no doubt that the vast majority of the owners in that room are sincere, good people with good intentions. I told a couple of them that. They are also small-business owners, and they do have a tough life. My father was self-employed, I know.

  • Comment: But there are many owners out there who are not good people, and the state needs to protect all workers.

3) Many of the owners testified that their servers like the status quo. The owners know this because they asked their servers about it directly.

  • Comment: Anyone NOT see a problem with this? If your boss thinks that A is better than B, and (his) money is involved, and asks you, his worker, if you think the same, and you don’t want to risk losing your job or making less, and you do want to feed your family, and you don’t have a contract or tenure and are not married to the owner’s sister, what are you going to tell him?

4) One of the owners told me that he didn’t think that sexual harassment had anything to do with the bill and, implicitly, should not have been brought up by the bill’s supporters.

  • Comment: Sexual harassment by the patrons is one of the things servers have to put up with to get decent tips. Unfortunately, it doesn’t stop there, but many servers also have to put up with it from their bosses or managers. If a server resists or complains, the offending party can assign her to the low-tipping work in the restaurant, like assigning her to a small section (fewer tables, etc.).

That’s It

Remember: tip high, tip often.

ProJo misleads public on Employment Policies Institute


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saltsmanMichael Saltsman lays out some specious reasoning and faulty arguments for why restaurant owners should be able to legally pay servers less than the minimum wage. That’s fine, as a public relations professional employed to advocate against low wage workers, that’s his job.

The Providence Journal, on the other hand, failed at its job and committed a journalistic sin by obfuscating the real origins of the op/ed. An editor’s note following the piece labels Saltsman as the “research director at the Employment Policies Institute, which receives support from businesses, foundations and individuals.”

In truth, the Employment Policies Institute is a front for a public relations firm funded by the restaurant industry and affluent conservatives to astroturf against low wage workers.

The New York Times last year profiled the Employment Policies Institute in an article titled “Fight Over Minimum Wage Illustrates Web of Industry Lies.” Here’s the first two paragraphs of that story:

WASHINGTON — Just four blocks from the White House is the headquarters of the Employment Policies Institute, a widely quoted economic research center whose academic reports have repeatedly warned that increasing the minimum wage could be harmful, increasing poverty and unemployment.

But something fundamental goes unsaid in the institute’s reports: The nonprofit group is run by a public relations firm that also represents the restaurant industry, as part of a tightly coordinated effort to defeat the minimum wage increase that the White House and Democrats in Congress have pushed for.

It goes on to explain how the Employment Policies Institute actually has no employees and was started by a pr pro who advocates for fast food and other corporate clients.

The Employment Policies Institute, founded two decades ago, is led by the advertising and public relations executive Richard B. Berman, who has made millions of dollars in Washington by taking up the causes of corporate America. He has repeatedly created official-sounding nonprofit groups like the Center for Consumer Freedom that have challenged limits like the ban on indoor smoking and the push to restrict calorie counts in fast foods.

In 2012, according to the New York Times, the Employment Policies Institute listed on its tax return just 11 donors, some of whom gave as much as $500,000. Most of that money either pays Berman’s pr company or purchases advertising beneficial to its clients. The website BermanExposed.org says Saltzman is an employee of Berman’s pr firm.

The Times writes the Employment Policies Institute is a “critical element in the lobbying campaign against the increase in the minimum wage, as restaurant industry groups, in their own statements and news releases, often cite the institute’s reports, creating the Washington echo chamber effect that is so coveted by industry lobbyists.”

Such astroturfing from powerful corporate special interests has become all too common in politics. Conservatives know the American people are opposed to their hope of keeping working class people in poverty, so they gin up voodoo economics to obfuscate the facts. The Providence Journal, on the other hand, should be in the business of educating not obfuscating and it committed a journalistic sin when it misrepresented Saltsman’s op/ed as unbiased economics.

John Henry vs. robots in Rhode Island restaurants


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John Henry
John Henry

At recent State House hearings on raising the minimum wage and eliminating the tipped minimum wage, restaurant owners, beginning with Bob Bacon of Gregg’s Restaurants, (who is also the president of RIHA, the Rhode Island Hospitality Association) have repeatedly brought up the specter of automation replacing low wage workers if labor costs are raised. Raising the wage, say entrepreneurs, will price minimum wage workers out of the market, and these robots are being developed now.

Following this argument to its inevitable conclusion, workers should realize that unless they are prepared to always sell their labor at rates below the price of a robot, they will be unemployable. As the price of such technology falls, workers should expect to have their wages slashed accordingly. It’s not just workers in restaurants who will be replaced, but taxi cab drivers, long haul truckers and soldiers. According to NBC News, even skilled workers like pharmacists and supposedly skilled workers like writers may find themselves displaced. In fact, one study estimates that 47% of jobs are at risk of being lost to robots.

I suppose that in the face of this threat we could fight for our jobs, selling our labor ever cheaper, exhausting ourselves in John Henry-like feats of frenzied work that demonstrate our indefatigable spirit even as our hearts explode in glorious exertion…

Or we can flip the script.

Whenever a new robot is developed, the owner simply lays off a bunch of workers, presses the “on” button and relaxes as the profits roll in. This allows the entrepreneur to enjoy a steady stream of income as the unemployed workers struggle to survive.

As more and more robots come online, less and less people will be employed. Eventually, even skilled robot mechanics will lose their jobs as robots will be able to repair each other. The humans of this world will be divided into those who own the robots and those who are starving to death. I think this is what Paul Krugman meant by “uncomfortable implications” when he discussed the future of robotics.

The problem with this scenario should be obvious. As this transition to the robo-centric world of tomorrow develops, there will be less and less people able to afford to buy the many things the robots are making. Long before we get to the point where the 1% of the 1% own the entire world and an army of robots to do their bidding, the economy will have collapsed.

No one will be able to afford to eat at Gregg’s.

So what’s the answer? Robert Reich suggests that it “may be that a redistribution of income and wealth from the rich owners of breakthrough technologies to the rest of us becomes the only means of making the future economy work.”

We already subsidize the restaurant industry with our taxes. Mike Araujo of ROC United RI says that “tipped workers in Rhode Island currently receive $638,325 in food stamps every month.” That’s because the wages the restaurants pay to these workers are too low, and as more workers are replaced by robots and become unemployed, we’ll need to expand our social safety net. To do that we’ll have to tax the owners of the robots.

In light of this logic, our best bet is to get on with this now. We need a progressive income tax structure to increase taxes on the top earners in our state. We need to strengthen and increase, not eliminate, the estate tax. We need to tax capital gains and we need a transaction tax on all stock trades. I’m sure there’s a lot more good tax policy ideas I’m missing, but for the problem of robots and automation in particular, we need a robot tax.

In the future predicted by the leaders of the Rhode Island Hospitality Association, there will be fewer and fewer people able to pay taxes or in any way participate in the economic system of our state. Robots, however, will be productive and very taxable. Instead of allowing a system where workers strive ever harder for less, we need to impose an automation tax on industries that replace workers with robots.

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Working for tips in Rhode Island


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NYC-Diner-ToGo-Cheeseburger-DeluxeAt the State House hearing for the wage theft bill and for the bill to raise the minimum wage we heard a lot from members and leaders of the Rhode Island Hospitality Association. At the wage theft bill hearing the room was packed with restaurant owners pleading poverty and assuring legislators that their waitstaff are well cared for, and even loved.

Most of the restaurant owners were from the kind of high end, casual fine dining establishments where stories of well paid waitstaff might actually be something akin to the truth. But as Mike Araujo, of ROC United RI pointed out, “The average tipped worker does not make $20 an hour.”

“We are not all high end restaurants,” he said. “We are mostly Denny’s, we are mostly diner service. So to say that ‘my people do well’ or ‘I love my people’ might be true, but we have to love all the people who work in the industry.”

In Rhode Island, servers are supposed to make $2.89 an hour, plus tips. By law, if a server doesn’t make enough in tips to reach $9 an hour, the restaurant is supposed to make up the difference.

In general there are two kinds of restaurants; corporate chains like Denny’s or Chili’s, and owner operated diners and restaurants. The chain restaurants are governed in large part by strict rules and regulations that come from the top. These restaurants are national or multinational in nature and don’t often run afoul of local laws. They operate in California, where there is no tipped minimum wage, as well as in New England, where Rhode Island has the lowest tipped minimum wage. The tipped minimum wage is $7.25 in Connecticut and $3 in Massachusetts. New York just raised theirs to $7.50.

Non-chain restaurants have more leeway in paying their employees, because they can often pay under the table. There is no corporate chain of command tracking every cent that comes in and goes out of the store. This isn’t to say that all owner operators violate the law, but the practice is common enough that some servers I’ve spoken to have told me that they have never worked in a restaurant that didn’t pay some or all of its employees at least partly under the table.

I recently spoke to two servers at two different restaurants about the tipped minimum wage and their experiences working as servers in Rhode Island. One server works at a chain restaurant here in Providence, the other works at an owner operated restaurant in Warwick. Both spoke to me under the condition of anonymity, so as to not suffer any blowback at work. Some details of their stories have been obscured as well, to avoid identifying them accidentally.

Debbie is a single mom working at an owner operated restaurant. She has three kids. She’s worked for tips all her life. “This is how we survive,” she said. “We do all right. I’m pretty good at what I do most of the time.”

Chris is in her mid-fifties and has been working for tips as a server for over 30 years. She works for a well known corporate chain restaurant. “When I first started waitressing [the tipped minimum wage] was $1.50 or $1.59, so it’s gone up, but not for 20 years. It’s crazy.”

John's Diner by John Baeder
John’s Diner by John Baeder

The experiences of the women are similar, and they make about the same amount of money, but there are big differences between working at an owner operated restaurant and working for a corporate chain.

“We make all our money on tips,” says Debbie, “At the end of the week I get a paycheck, and it’s usually nothing, or a dollar, because of taxes. We get taxed on our tips and we get taxed on the $2.89.”

Chris has the same experience in her corporate store. “Some of my co-workers have a pile of $2 and $3 checks. Why bother cashing them? Or if they do, they cash them once a year for $80.”

Both work hard. “I work my ass off in here six days a week,” says Debbie, “I work like 45, 50 hours a week.” Chris works Monday through Friday. They both work the day shift.

I ask them about overtime.

“I probably shouldn’t say this,” says Debbie, “but the owner pays me for 40 hours and then I get the rest in cash. Time and a half has never happened. Every restaurant I’ve ever worked at that’s how it always was. You get paid for 40 hours and then everything else is overtime, not on a paycheck. Time and a half on $2.89 is meaningless anyway, because we’re talking about less than $4.50. It’s not like my tips are going to be time and a half.”

Chris sees this as a problem. “Corporate restaurants have to do the right thing,” she says, “But these [owner operated] restaurants, they can get away with not paying $2.89 or overtime.”

She said she knows someone who was injured and couldn’t collect disability because “so much of her work was off the books she didn’t qualify. I have friends that are working at some of these little places that aren’t making out. One girl got laid off and was told, ‘You can’t collect. You were working under the table.’ How are you suppose to deal with that?”

Working at an owner operated restaurant can bring other problems as well. “We don’t get time and half for holidays, we don’t get paid vacations,” says Debbie, “If I take a vacation I lose out. I pay for the vacation and I don’t get paid to work. My kids are like, ‘You don’t even get time off,’ and I’m like no, I don’t.

“You don’t get sick pay, you don’t get- I can’t even call in sick! There’s no one else to work. I open the store. Who’s going to answer the phone at 5 o’clock in the morning? If I’m sick, you’re not going to answer your phone, you know? You’re going to be sleeping.”

The recent snow has interfered with their pay as well. “It’s difficult sometimes, on a slow snow day, sure,” says Chris, “We didn’t get any customer tips until almost one in the afternoon and we’re thinking, ‘We’re not going to get anybody today.’”

So when it’s slow like that, does the restaurant make up the money as the law requires?

“They’re supposed to punch you in [with more money] when you make less than minimum,” says Chris, “but they average the week.”

Debbie agrees, telling me, “We don’t ever not make minimum wage, so the restaurant never has to make it up. On any given day we might not make any money, but the restaurant is allowed to average it out over the week.”

Debbie is worried about raising the tipped minimum wage. She worries that, “if they raise the minimum wage to $9 an hour people aren’t going to tip us, and if we made only $9 an hour we wouldn’t make what we would just living off tips. We make more than that in tips.”

Chris isn’t convinced. “People don’t know what we make. In the restaurant people are telling me, ‘I didn’t know you made this! I saw on the news they’re trying to raise your rates. I didn’t know you made only $2.89.’ If they already thought you were making more and they’re tipping you whatever they do, why would they lower it when you actually make that amount?”

Debbie has an ‘aha’ moment. “Yeah, you’re right. If you don’t know what I make, and you’re assuming that I’m making minimum wage when you tip me, then why would you not tip me?”

I point out that the minimum wage in Connecticut for tipped workers is $7.25, and nobody seems to be tipping less there.

“Really?” says Debbie, surprised, “I didn’t know they made more in Connecticut. Damn. It’s like right there.”

Chris isn’t surprised. She knows people who went to Connecticut to make more money. “A couple of girls who live on the line transferred to Connecticut, but I live too far,” she says. Transferring wasn’t hard, because the corporate restaurant chain has units in every state.

Both servers mentioned that working at a higher end restaurant in Providence might bring in more money. “I would have loved to have gone to Federal Hill,” says Chris, “but I don’t see myself, at my age, going there, working at some fancy restaurant.”

But both women also had heard stories that worried them.

“I had a friend who worked at a nice, upscale restaurant in Providence,” said Debbie, “and she worked Friday and Saturday night and made a lot of money, but for every good shift you got there you had to take a crappy shift on a Tuesday afternoon or something. On a Monday-Tuesday lunch, she might make $3. But she still had to pay to park, and she had to pay for her gas because she doesn’t live in Providence. So she’d drive to Providence, pay to park, drive home and leave negative basically.”

“One girl I know applied at a very nice place on Federal Hill as a cocktail waitress,” says Chris, “She didn’t take the job because they told her you don’t make a pay, you just work for tips and all of you pool your tips at the end of the night.”

So they don’t pay the cocktail waitresses anything?

Chris nodded. “She never took the job. I told her that’s not right. She was asked, ‘You want taxes taken out? You want to go through all of that?’

“I have friends who worked on Federal Hill. A lot of them get paid under the table. The [owners] should have to do the right thing, but that’s what they don’t want to do. Corporate restaurants have to pay you the right wages. They have so many restaurants, and they pay different amounts everywhere they’re set up, but you’d think the corporate restaurants would want these other restaurants to pay employees on the books so that they could compete better.”

So, I ask, are you two living the high life?

“I see people working to get $15 an hour at McDonald’s but we don’t make that,” Debbie says, shaking her head. “Every so often we may make that, but not all the time.”

“I don’t live the high life, God no,” says Chris.

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Minimum wage opponents warn of robots, false economic logic


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Bob Bacon, Gregg’s Restaurants

Rep David Bennett’s bill to increase the Rhode Island minimum wage to $10.10 from its current $9 would be the fourth time in four years that the lowest earning Rhode Islanders would see an increase in their pay due to legislative action. Like always, such an increase will not come without a fight.

Last week’s meeting of the House Labor Committee saw five different business lobbying groups send representatives to speak against any increase. During the two hours of testimony, any reason that could be dredged up to oppose increasing the minimum wage was presented – including fear mongering, the citing of questionable studies and downright falsehoods.

Lenette Boisselle, representing the Rhode Island Hospitality Association, suggested that the minimum wage is merely a temporary training wage, and not much used in the state, even though Rep. Bennett just testified that there are 45,000 Rhode Islanders making minimum wage. Boisselle said that we don’t yet know what effects the recently enacted minimum wage increase will have on our state’s economy. Elizabeth Suever, of the Greater Providence Chamber of Commerce, agreed with Boisselle and suggested that the state do a study to determine what the appropriate minimum wage should be.

Bob Bacon, who is the chairman of the RI Hospitality Association and runs Gregg’s Restaurants, a small chain of medium priced eateries, maintained that any increase in the minimum wage will force prices to rise, resulting in no advantage for workers. But what minimum wage advocates should really be worried about, according to Bacon, are robots.

“There’s already massive movement towards technology that will eliminate the need for labor,” said Bacon, “In many restaurants now you have touch pads. Guess what’s next? Pretty soon you’re placing your order on that thing and it’s going to take ten less people to serve you your dinner. And McDonald’s has a system now that one guy at the end of the line starts the burger process and it spits out the other end and they eliminated three people in the middle.”

John Simmons, of the Rhode Island Public Expenditure Council, did Bacon one better. “There’s been some work done, I think, by McDonald’s, as a matter of fact. In particular, on hamburger making. There is some expertise now that they’re drafting up that there will be no person making hamburgers anymore at McDonald’s. It will be all done by machine.”

That workers demanding fair pay will force industry to develop robots has been the refrain from economic conservatives for a while now. The Wall St. Journal ran a piece called “Minimum Wage Backfire” that blamed business automation on minimum wage activists, writing, “The result of their agitation will be more jobs for machines and fewer for the least skilled workers.” Conservative blogs and other media have run with the story, but there’s no truth in it.

As Patrick Thibodeau points out in Computerworld, “The elimination of jobs because of automation will happen anyway.” Some experts think that robots and computers will “replace one third of all workers by 2025.”

Bob Bacon must know this.

Gregg’s Restaurants is a pioneer in the computerization of restaurants. Most of the millions made by Bill and Ted Fuller, owners of the small chain, has come from POSitouch, “the food service industry’s most feature rich POS system.” I’ve heard rumors that the entire Gregg’s Restaurant chain is a loss leader, maintained to demonstrate the POSitouch system to interested buyers.

If robots were able to do the work needed to replace people in restaurants, POSitouch would be in a position to know. The information Bacon and Simmons presented about the hamburger machine is probably untrue, because if the technology existed to automate the burger making process, McDonald’s would already be using it. Instead, McDonald’s is investing in ordering kiosks, like ATMs in banks or the self-checkout machines at supermarkets. And it’s doubtful that these kiosks could be prevented if the employees agreed to work for less money.

How can any worker live on less than it takes to maintain an iPad?

John Simmons made the additional point that an increase in the minimum wage is basically unnecessary because, if you are on minimum wage then “you are probably getting earned income tax credits, you’re getting Medicare, you’re getting all the social programs which are allowing you to offset all the inflationary issues because you’re not paying for them anymore.”

That’s true. Low wage workers are not paying for all this government assistance. Taxpayers are. Rep Bennett testified that Walmart has nine locations in Rhode Island and pays $9 an hour. Their revenue is $476.3 billion. Rhode Island subsidizes Walmart’s labor costs through social services. Raising the minimum wage would force Walmart to pay its own labor costs, and allow more people to live without government assistance.

This could go a long way towards Speaker Nicholas Mattiello’s dream of a world without a social safety net.

Some legislators helped those speaking against the minimum wage with their testimony by lobbing out leading questions, as evidenced by this exchange between Republican Representative Antonio Giarusso and Bob Bacon:

“What is minimum wage?” asked Giarusso, “Is it a living wage, is it somebody just getting out of school, making their way, trying to learn the ropes? Not to put you on the spot, but of all your employees, how many of them are making a minimum wage or something really close to it and are the breadwinners in their households?”

“The breadwinners?” asked Bacon before answering, “Zero.” Two which Giarrusso said with satisfaction, “I thought that would be the answer.”

Penelope Kyritsis, representing RI National Organization for Women, said that approximately 60% of minimum wage workers are women, based on a a report from the National Women’s Law Center. Most of these women have children and no spouse to rely on, meaning that they are the main breadwinners in their family.

A typical minimum wage worker, according to Kyritsis, contrary to popular belief, is not a teenager. The average age of a minimum wage worker is 35, according to the United States Department of Labor, and 88% are at least 20 years old.

A full report on the benefits of raising the minimum wage in Rhode Island to $10.10 can be found here. It should be noted that a single person with no children needs to make $11.86 an hour, to not be in poverty.

If there are any doubts about the cozy relationship between our General Assembly and the business interests in Rhode Island, there’s this exchange I’ve reproduced in comics form.

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Right now, business owners and lobbyists have the reigns of the State House. They are pursuing an economic agenda that has only benefited those at the top and almost never those who struggle at the margins.

If low wage workers want fair treatment at the State House, they have to organize and demand it.

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