Page 25 - ARUBA TODAY

BUSINESS Saturday 5 January 2019
A25

Minimum wage rising in 20 states and numerous cities

By DAVID A. LIEB wage to as much as $11 an
Associated Press hour in 2015, then as much
JEFFERSON CITY, Mo. (AP) as $13 in 2016, depending
— At Granny Shaffer's res- on the size of the employer
taurant in Joplin, Missouri, and whether it provided
owner Mike Wiggins is re- health insurance.
printing the menus to re- A series of studies by the
flect the 5, 10 or 20 cents University of Washington
added to each item. has produced evolving
A two-egg breakfast will conclusions.
cost an extra dime, at In May, the researchers
$7.39. The price of a three- determined that Seattle's
piece fried chicken dinner initial increase to $11 an
will go up 20 cents, to $8.78. hour had an insignificant
The reason: Missouri's mini- effect on employment but
mum wage is rising. that the hike to $13 an hour
Wiggins said the price hikes resulted in "a large drop in
are necessary to help off- employment." They said the
set an estimated $10,000 to higher minimum wage led
$12,000 in additional annu- In this Tuesday, Dec. 18, 2018 photo, Shawna Green, waitress at Granny Shaffer's, puts out menus to a 6.9 percent decline in
al pay to his staff as a result for customers at the restaurant in Joplin, Mo. the hours worked for those
of a new minimum wage Associated Press earning under $19 an hour,
law taking effect Tuesday. resulting in a net reduction
"For us it's very simple. to pay at least $15 an hour many states have ratch- like it's our fault and our do- in paychecks.
There's no big pot of money as of Monday. That's more eted up wages through ings" that menu prices are In October, however, those
out there to get the money than twice the federal mini- phased-in laws and adjust- increasing, she said. "They'll same researchers reached
out of" for the required pay mum of $7.25 an hour. ments for inflation. back off on something, a contrasting conclusion.
raises, Wiggins said. A variety of other new state In Arkansas and Missouri, and it's usually their tips, or They said Seattle workers
New minimum wage re- laws also take effect Tues- voters this fall approved they don't come as often." employed at low wages
quirements will take effect day . Those include revi- ballot initiatives raising the Economic studies on mini- experienced a modest re-
in 20 states and nearly two sions to sexual harassment minimum wage after state mum wage increases have duction in hours worked
dozen cities around the policies stemming from the legislators did not. In Mis- shown that some workers after the minimum wage
start of the new year, af- #MeToo movement, restric- souri, the minimum wage do benefit, while others increased, but nonetheless
fecting millions of workers. tions on gun sales following will rise from $7.85 to $8.60 might see their work hours saw a net increase in aver-
The state wage hikes range deadly mass shootings and an hour on Tuesday as the reduced. Businesses may age pretax earnings of $10
from an extra nickel per revamped criminal penal- first of five annual increases place a higher value on a week. That gain generally
hour in Alaska to a $1-an- ties as officials readjust the that will take it to $12 an experienced workers, mak- went to those who already
hour bump in Maine, Mas- balance between punish- hour by 2023. ing it more challenging for had been working more
sachusetts and for Califor- ment and rehabilitation. At Granny Shafffer's in Jop- entry-level employees to hours while those who had
nia employers with more The state and local wage lin, waitress Shawna Green find jobs. been working less saw no
than 25 workers. laws come amid a multi- will see her base pay go up. Seattle, the fastest-growing significant change in their
Seattle's largest employers year push by unions and But she has mixed emotions large city in the U.S., has overall earnings.
will have to pay workers at liberal advocacy groups about it. been at the forefront of the Both supporters and oppo-
least $16 an hour starting to raise the minimum wage "We'll have regulars, and movement for higher mini- nents of higher minimum
Tuesday. In New York City, to $15 an hour nationwide. they will notice, and they mum wages. A local ordi- wages have pointed to the
many businesses will have Few are there yet, but will bring it to our attention, nance raised the minimum Seattle studies.q

Ford recalls over 953,000 vehicles to replace inflators

By The Associated Press graphic areas of the U.S.
Ford is recalling more than At least 23 people have
953,000 vehicles world- been killed worldwide by
wide to replace Takata the inflators.
passenger air bag inflators Ford says it doesn't know
that can explode and hurl of any injuries in vehicles
shrapnel. included in this recall. Deal-
The move includes 782,000 ers will replace the inflators.
vehicles in the U.S. and is Takata uses the chemical
part of the largest series of ammonium nitrate to cre-
recalls in U.S. history. ate an explosion to inflate
Included are the 2010 Ford air bags.
Edge and Lincoln MKX, the But it can deteriorate over
2010 and 2011 Ford Rang- time due to heat and hu-
er, the 2010 to 2012 Ford midity and explode with
Fusion and Lincoln MKZ, the too much force, blowing
2010 and 2011 Mercury Mi- apart a metal canister de-
lan, and the 2010 to 2014 signed to contain the ex-
Ford Mustang. plosion. This Nov. 19, 2015 file photo shows the blue Ford oval badge in the grill of a pickup truck on the
sales lot at Butler County Ford in Butler, Pa.
Some of the recalls may Takata recalls are being Associated Press
be limited to specific geo- phased in through 2020.q