2016 Postmortem
In reply to the discussion: What should the federal minimum wage be? [View all]MichMan
(11,790 posts)Why would it only apply primarily to service professions? A $15/hr minimum wage hits everyone especially those currently making between the current minimum wage and the new increased one.
Manufacturing wages in my state typically run $11-$15 per hour. It is harder work than fast food or retail. All those workers would also need higher wages proportionally. Those will be the jobs that end up moving to China or Mexico. Is there much manufacturing in NYC or San Francisco?
The manufacturing base of Michigan is the auto industry. Most of that is with smaller parts suppliers scattered throughout the state in smaller towns not large urban areas. Those companies already operate on thin profit margins and have to compete daily with suppliers in Mexico and China. Our customers already do business with suppliers overseas routinely and an increase in labor costs of 30-50% would accelerate that exponentially
My plant pays approx. $13/hr vs the current minimum wage of $10. If minimum wage goes to $15/hr., we would need to pay in the $18/hr range. Otherwise, if we also paid $15, people would quit and work at the local Wal Mart instead as the work is easier.