Speaker 1: (00:00)
With a new year comes new laws. And just this week, the minimum wage of all workers in San Diego jumped to $15 an hour. While the change has been lauded by elected officials and workers rights advocates, many say that the wage hike is still not enough. Joining us now with more on what this increase means in the age of the great resign is San Diego union Tribune, reporter Lori Weisberg. Lori, welcome back to the program. Thanks for
Speaker 2: (00:26)
Having me. So
Speaker 1: (00:27)
This increase is the culmination of a nearly decade old campaign. The fight for 15, what's been the local response now that the change has taken effect in 2022. I
Speaker 2: (00:39)
Think it's almost kind of a different response than we seen with previous, uh, wage increases where business owners were, you know, not happy about the continued increases in the minimum wage, especially for tipped workers who traditionally make minimum wage and then make a lot more with tips. And that's because as you mentioned, the great resignation, there's such a shortage of workers that, um, even before this kicked and businesses were offering wages well above minimum wage because they need to attract workers. So as I pointed out in my story, it almost felt like a, so what milestone, even though it is quite a milestone, because the reality is you as an employee right now, who's more like a service worker or, you know, a lower wage worker can command higher wages in this minimum because of the desperation of employers.
Speaker 1: (01:27)
You write that unions workers, advocates, and local elected leaders have celebrated the wage hike. But how does that really differ from the average employee's perspective?
Speaker 2: (01:36)
Well, I think for a long time, um, the message at least in California is that minimum wage, whether it's 1250, an hour or $15 an hour, isn't enough to live on it in California, especially in Southern California, where the cost of living is so high, many of these minimum wage workers are having to work two jobs. And, and that will probably continue to be the case with this, uh, increase to 15. And even
Speaker 1: (01:59)
As the wage floor sees this increase, as you mentioned, uh, law, larger companies like McDonald's are offering even more competitive salaries to attract workers. What kind of an impact will this have on small businesses?
Speaker 2: (02:11)
Yeah. And that's the thing, I mean, you've got McDonald's Jack in the box, Amazon's offering $18 an hour. They have the financial wherewithal because they're so large to, um, to make that adjustment. But it's the smaller businesses that do have a tough time to talk to an owner of super casinos of fast casual restaurant in San Diego. And he said, in addition to having trouble finding workers right now that his payroll has increased substantially every two weeks has gone from 17,000 to about 23,000. And he's concerned about that. He understands and he supported, he said the $15 an hour wage fight, but he's concerned about being able to continue to be able to pay those kind of wages plus, you know, deal with, um, inflationary cost for, for food, food products are going up too. The prices for those are going up
Speaker 1: (02:59)
Too, is $15 an hour enough to live and work in a place like San Diego.
Speaker 2: (03:05)
No, we keep reading the stories about how rent's going up. Forget buying a home that the cost of buying a home has gone up. Um, again, to give you another anecdote, I didn't include her in the story, but another fast food worker is having to survive on credit cards and payday loans. because it's not enough. And, and also even if you've got two people in the household making minimum wage, it may be enough, but you, you still there's still potential to go into a debt, but we can't minimize the fact that, you know, 10 years ago there was this fight to bring it to 15. And, and it seemed revolutionary at the time. And now we're, we're there. And then in the city of San Diego started 2016 with an ordinance to bring it up to 15. So we have made progress. And if you put that in the context of a federal minimum wage, which is still just a little about $7 an hour, you, you see it is still to a degree, a more occasion.
Speaker 1: (03:53)
It's still, it sounds like it was already too little, but now it's definitely too little too late for some people. Yes.
Speaker 2: (03:59)
Good point.
Speaker 1: (04:00)
Yes. Yeah. How have employers reacted to this change?
Speaker 2: (04:03)
They're accepting it because they recognize that they need workers. So like I said, their position is so different from past minimum wage increases because of this desperation. Um, and you're seeing some businesses are having to close temporarily or close earlier or not open seven days a week because they don't have enough workers. So like I said, this year's wage increase. The reaction is quite a bit different because they know the reality that whether there's a mandated wage increase or not it's defacto happening because they need workers so badly.
Speaker 1: (04:36)
Right? So the worker shortage really is playing into this. The fight for 15 is over now, but already a new campaign is advocating for an $18 minimum wage. Uh, what can you tell us about that?
Speaker 2: (04:49)
So that is a statewide campaign, which I'm sure, um, San Diego advocates will, will join in and a wealthy Los Angeles investor has the filed papers for the state to, to start that. Now he's promised to find the signature gathering effort and we'll see if that makes it on the ballot. And if it does, it would gradually increase the state minimum wage to $18 an hour over the next few years. But I should point out that the existing law for minimum wage for the whole state and that the existing minimum wage law for just the city of San Diego, both had have, uh, provisions that allow the minimum wage to increase based on the consumer price index or inflation. So, um, it's not like it won't keep rising locally and statewide, but again, it's tied to inflation and I guess it's inflation isn't high. Then the minimum wage increase won't be a lot, but at least minimum wage workers are guaranteed continued increases, but this would, this ballot measure would legislate. So would be a gradual increase just as we saw with the existing state and city of San Diego minimum wage ordinances.
Speaker 1: (05:54)
I've been speaking with San Diego union Tribune, reporter Lori Weisberg. Lori, thank you for joining us and
Speaker 2: (06:00)
Thank you.
