MAY 27, 2014 AT 1:00 AM
...The bill, (click here) which eliminates the 1964 minimum wage law and replaces it with a new one, appears to short-circuit Raise Michigan’s ballot campaign.
Supporters of the bill say because the ballot proposal changes existing law — which will be replaced by the new law upon Snyder’s signature — the Raise Michigan proposal will be moot.
That’s why Sen. Morris Hood, D-Detroit, voted against the legislation and made the only floor speech in the Senate following the vote. “This circumvents their right to put it on the ballot,” he said....
...Tipped workers, who rely mostly on gratuities, will get 38 percent of the new rates. Their $2.65 an hour minimum gradually would roll up to $3.52 by 2018.
In a way, tipped workers already are guaranteed the regular minimum wage. If a food server’s lower minimum wage plus tips fails to average the current $7.40 an hour, a restaurant owner must make up the difference.
Raise Michigan’s $10.10 minimum wage plan also would apply to tipped workers. The Michigan Restaurant Association warned that such a huge increase would many out of business.
“Most of those businesses operate on a very thin margin,” said Farrington, who has owned a smaller business....
I sincerely don't approve of a separate 'Tip Wage Labor.' I doubt most Americans do. That is corporate welfare.
Waiters and waitresses bring their own expertise to the job. Their talent is not transplanted by the owner of the facility. As a matter of fact, the owner of the facility should be worried about the quality of everything 'in support' of the expertise the 'wait staff' is bringing to their customers.
Now as far as "Most of those businesses operate on a a very thing margin." That is just too bad. I don't believe it. And if franchises are that 'thin a margin,' what is anyone investing for in the first place?
Populous restaurants like Chili's or Godfather Pizza or Ruth Chris Steak House where the food just came off the refrigerator truck and always looks the same; there isn't that much wait staff.
On a good day, one of these corporate chains might have a receptionist/cashier and maybe a person that seats customers. Then the wait staff at the tables might be about 6 or 8. So, that is approximately 10, at the most with a bartender it is 11 or 12. if they are all receiving minimum wage, that is a salary of $121.20 per hour. Now, no one is going to tell me any of those corporate restaurant chains isn't experiencing receipts of at least $121.20 per hour.
The other expenses are the chefs, the food itself which is bought according to demand (which means the food is sold - that is simply a floating 'cash in - cash out' expense), utilities for food preparation, depreciation costs on the facilities, maintenance and property and business taxes IF ANY and of course the precious stockholder dividend and CEO bonus. So the idea paying a wait staff minimum wage is cutting that 'slim margin' of viability to zero or negative is hideous. That reality does not exist.
