When I was a Teenager, minimum wage was $7.25 and hour; to hear discussions of raising the wage to $10 per hour is like seeing pigs fly. I couldn’t believe when I first heard the news that it was a possibility, but when changes like this happen, there’s always a ripple effects. For example, Obama gives us universal healthcare, but taxes go up. It’s never a win-win situation regarding economic and political alterations, but a gal can dream.
This week Ikea announced the success of their minimum wage hike from $10 to $11.87, but what does this mean for other companies. Retail frachises all over the nation might catch on to the movement and decide to raise its pay. Although this sounds like a good deed, the raise also means some major organizational changes like, budget cutting, renovation reestimates and more. In retrospect, the increase in minimum wage seems like a step towards better working conditions and more acceptable employee treatment, but it’s hard to believe all that all these great changes don’t have consequence.
Photo Credit(s): Getty
1. Budgets Cutting
Because of the raised wages, companies may be forced to cut certain budgets like the employee budget. More pay to the workers will lead to less new hires and possible layoffs. Although the government tells us this isn’t true, it seems a little suspicious that there are all of a sudden more funds to pay people more.
2. All Other Wages Will Raise
If the raising of minimum wages because a national happenstance, this may lead to everything else raising: i.e prices of clothing and products.
3. May Lead To Protests
Not every company is on the minimum wage raise wave, so this might prompt employees of non-participating companies to protest for their wage raises.
4. Less Hours
Since they are paying employees more, during the slow months hours may be cut because business is not flourishing as well.
5. More rigorous working conditions
When you are getting paid more money, you are mostly likely going to be working in more laborous conditions or asked to do more work for less additional pay.