Mayor Fischer just raised the min wage to $9 an hour over the house of 3 years set to end mid 2017. What effect does that have on our wage progression?
My guess is those people who are making less than $9.00 an hour will automatically move up to that rate. Their raise progressions, however, will remain the same. For example, for part time people the next raise progression above $9.00 is at 48 months of service at which a person moves up to $9.40. A person just hired and a person who's been with the company for 42 months will both receive $9.00 an hour. However, six months later the person who's been there 48 months will receive a raise. The other person and everyone who's been there less than 48 months will remain at $9.00. The same holds for full time people. Look for them to cut hours even more. That's the problem with raising the minimum wage. Big corporations like Kroger can simply cut hours and still survive. The small mom and pop stores can't afford that luxury and sometimes have to go out of business because they can't afford to pay their workers.
Besides hours being cut, you can also expect prices to go up. You can't expect those people in corporate to take a dip in their salaries and bonuses, can you?
in Michigan, the company renegotiated the wage scale.
Does that mean that wage increases for all workers will be distributed in relation to the minimum wage increase that was just passed?
They're not going to do anything about wages until the new contract comes up. The current one expires April 4, 2015. That's less than four months away.
I heard when it happened in ATL people making what was already the new minimum didn't see a relative bump and so they lost ground to those who were new hires in spite of years of service.
