As many of you here will know by now, California imposed sector-wide bargaining for Fast Food workers this past year, and the result is that the minimum wage for said workers in the State has risen from $16USD to $20USD per hour.
This is a 25% increase.
In the media story linked below, we see the impact on prices in the California Fast Food industry:
Since California’s new law went into effect to raise the minimum wage of fast food workers, some fast food chains have raised their food prices, according to a new study.
www.nbclosangeles.com
This is a perfect and positive example of the impacts of the increase; as employers so often proclaim, the impact of a wage increase is indeed a price increase; but one far less than the wage increase, because wage accounts for such a low portion of total cost. (typically 12-20% in fast food)
So we see 3 examples above at ~7.5% average price hike, and 2 others at 2.5%. Not a complete sample, but I'll lean slightly to the higher increase and weight the average at 6.25%. To the extent that is correct, you're getting a price increase, on average, at 1/4 of the percent of the minimum wage increase.
I for one would support that every single day. There is, of course, a limit, and I think California is probably fairly close to it; but at $20USD per hour, you're at $27.60 per hour CAD, which would not leave me feeling too badly for someone working in said sector.
www.bbc.com
www.cbsnews.com
thehill.com
