Hundreds of cities experienced strikes on Nov. 10, led by mainly fast-food and low-income workers demanding a $15 minimum wage. The "Fight for 15" movement is backed by the Service Employees International Union and calls for the right to unionize, as well as higher, more livable pay. Starting from McDonald's outlets across the country, according to USA Today, the rallies also included low-paid home care, child care and nursing home employees addressing their struggles with the current minimum wage, which holds at $7.25.
Political debate fodder
The decision to protest on Nov. 10 wasn't a coincidence. Not only did the date mark one year until the presidential election, it was also the day of a Republican debate in Milwaukee, Wisc. The Brew City was the culmination point of the rallies as workers descended upon the Milwaukee Theatre to stake their claim. This issue is a hot-button topic for both Republicans and Democrats. Many presidential hopefuls have already taken their stand on the possibility of raising the minimum wage.
"This issue is a hot-button topic for both Republicans and Democrats."
Republican candidates ranging from Donald Trump to Ben Carson to Jeb Bush have all spoken against the proposal, citing a decrease in job growth and an increase in joblessness as their reasons for being opposed to the hike, according to Time magazine. Democrats including Bernie Sanders and Hillary Clinton, on the other hand, are for a raise in the minimum wage, although Clinton proposed a $12 pay baseline. These candidates say this change will reduce the gap between the rich and the poor.
Small business effect
The demand for an increased minimum wage highlights the impact this change will have on small businesses nationwide. According to CBS News, the raise would especially help low-income employees residing in cities and states where the cost of living is high, such as Los Angeles and New York, to name a couple. This alteration would help increase the average annual income of a low-paid family. In addition, higher wages have been found to reduce employee turnover, resulting in fewer training and employment costs, the U.S. Department of Labor reported.
Alternatively, many – including the U.S. Chamber of Commerce – argue the increase in minimum wage would have negative effects. The hike could result in a loss of jobs, if companies have to cut back on employees to maintain the same level of profitability, according to Forbes. Furthermore, a minimum wage increase could encourage current employees to stay in their jobs for longer periods of time, barring more new workers from entering the workforce.
Next steps for human resources
This topic will continue to be a popular point of contention in the months moving forward, especially in the light of the upcoming presidential election. Human resources teams should remain aware of any local or state-mandated changes to the minimum wage, as well as how the issue is faring on a federal battleground.
No matter what, HR leaders should be prepared for a possible increase in wages, and map out how the company will be affected by the raise. Human Resource Executive Online suggested developing business strategies for the upcoming year by taking several scenarios into consideration: no increase, a minimal hike or the institution of the $15 minimum. Enterprises also have the option to raise their current wages so the possible escalation will have less of an immediate impact.