Lies about minimum wage – it’s not even a lousy $7.25 an hour

One of the least discussed provisions of the minimum wage law in this country is how we treat workers under the age of 20 – those high school and college students deprecated on FOX News, for example, as overpaid burger flippers, toilet cleaners, gardeners, and other manual workers. The concept of raising their wages to $15 an hour drives most of the GOP and some Democrats up the wall.

wagesIf you are under 20 and planning to spend most of your summer raising money for college, the thought of even $7.25 an hour (less 50 cents FICA) might sound attractive. So, you agree to your new job of flipping meat for eight hours behind the hot grill without asking about wages, and you assume you will be paid minimum wage of $7.25 or more.

The plan is work hard to reduce your student loan debt, especially since college costs go up 5% or more every year.

Paid every two weeks, after an exhausting struggle, there is your first paycheck, and something is very wrong. You go to your boss and ask – why is my pay so low? Is this for just one forty-hour week?

The employer paid you gross – before taxes – a total of $340. After FICA and state and local taxes, you take home about $300 – and your boss explains it is for 80 hours of work. Welcome to crony capitalism!

Here’s why this is allowed, according to the Department of Labor (DOL) minimum wage rules:

A minimum wage of not less than $4.25 may be paid to employees under the age of 20 for their first 90 consecutive calendar days of employment with any employer as long as their work does not displace other workers. After 90 consecutive days of employment, or when the worker reaches age 20 (whichever comes first), the worker must receive at least the Federal minimum wage.

Just as you are ready to qualify for $7.25 an hour, it’s time to leave your job and go back to Continue reading “Lies about minimum wage – it’s not even a lousy $7.25 an hour”

FOX News lies about auto worker hourly wages

FOX News yesterday proclaimed on the web:

The new GM deal would raise labor costs from $55 to $60 an hour, a 9 percent hike, according to a study of the deals from Kristin Dziczek of the Center for Automotive Research and Art Schwartz, a former GM labor executive and president of Labor and Economic Associates. The union contract at Ford also reached the $60 hourly rate over the next four years, a 5 percent increase from its current rate of $57. Those hikes pale in comparison with Chrysler, where average hourly wages will spike nearly 20 percent from $47 to $56.

Imagine “average hourly wages of $56” at Chrysler and equally high “labor costs” at GM and Ford. That $56 an hour times 40 hours times 52 weeks, equals $116,480 a year! What a great job – fantastic pay!

The turkeys at FOX News consider this the reason cars cost so much and will cost even more. They even printed (and so authorized by moderation) this comment on the website story:

  Well, here comes the NEXT set of lost Manufacturing Jobs in America.   Either it will come by NON-USA cars being made overseas because of the price or More Robots will be doing their job.

I have watched these Assembly lines making cars on TV  – – Not sure it takes a $124,800 (no overtime) person to do it (plus the best Insurance and benefits, probably puts it over $150,000) to do what I saw.

I am happy for them but everyone must be realistic  – – you can price yourself out of a job if you  get too greedy.     This sounds a bit greedy.  Not sure it takes a Master degree in engineering to do this job, and I know lots of Engineers that would love to make this much.

And this gem:

Democrat definition of a living wage. Making $60/hour to do a job that a trained monkey could do, soon to be replaced by robots.

And this one:

Union workers are remarkably stupid.  History is going to repeat itself here.  Unions priced workers right out of work before and are well on their way to doing it again.  But union bosses keep raking it in, don’t they?  Union workers will get what they deserve.

However, the article is a big lie….

The Kristin Dziczek quoted by FOX News explains what the corporate shills Continue reading “FOX News lies about auto worker hourly wages”