Monday, October 5, 2020

Minimum Wage Story

 Yesterday, locals in Geneva, Switzerland came out and voted on a bill which affected the local region.

The deal....a minimum wage is suggested, making 23 Francs an hour....the standard.  Officially, 21.35 Euro an hour or $25 US dollars.

It passed.....almost sixty percent of the city voted it in.

Affecting?  They say around six-percent of the city will be affected.  

The affect?

Well....when you walk into a pizza shop or a pub for a beer or two....after the system is put into effect....you will notice at least two to three Francs more for the pizza, and the beer is probably gone up one entire Franc.

Walking around in a whole month....buying coffee, fresh flowers, and a Saturday pastry bag....you probably begin to notice that you need another sixty Francs each month for the bare minimum of things that you did last month.

Then you begin to notice that the three guys who ran the corner pub that you'd visit on Friday nights....are now down to two, with drinks taking twice as long on ordering.  

The pizza shop?  Those five folks who were the waitresses and kitchen help?  It's now four folks.  On a rough Saturday evening, with the whole place full....you start asking after 20 minutes of delay....why is it taking so long to just get your order established....or why so long to pay for the bill?  But the reason will be simple....they can't afford the extra help.

All of this will lead back to an odd thing.....more people unemployed, than what existed this past summer, and the city government wondering how they can resolve this high number of unemployed people. 

Oh, I agree...Geneva is outrageous on living conditions, and probably has been that way for the past fifty years.  But this minimum wage situation will just complicate it even more.  

5 comments:

Claudio said...

It will lead to mire automation, self check out instead of cashiers, self serve or simply more computers scanners doing the work. I think that is a good thing for businesses in long run will save a lot if tax, the state will lose the tax revenue

Claudio said...

I work in automation for the last 10 years and we displaced a lot of staff that handled the paperwork Via better scanning OCR and electronic archiving. This is the way of the future

Schnitzel_Republic said...

Generally, automation will take over. In a regular pizzeria, it will be near impossible. Bars are an example where you could have some automation...with beer on tap...not in bottles. A fair number of no-talent people are looking at the beginning of the end. As much as the people of the region think they doing a positive, they are speeding up automation.

Claudio said...

Possibly bars and pizzerias will still be around, however the vast majority of the low paying jobs will be displaced or sent offshore, this is what happened in Ontario, Canada where I live, the previous liberal government raised the minimum wage for the entire province, that cause many businesses to not be able to keep full time employed people, some of the staff was either laid off or put on part time hours because of the not so costly benefits, this province is very large and some towns cannot afford to pay the minimum wage that one business in Toronto might be able to do. A lot of work was offshored and many were replaced by automation. Wait till the self driving commercial vehicles will become mainstream and then you will see millions of jobs lost in North America where the merchandise is 90% delivered by truck in some fashion.

Schnitzel_Republic said...

I'll agree, by 2030, taxi-drivers and probably 50-percent of delivery-drivers will be replaced. As health insurance and pension cost escalate....it only makes sense to automate things. It'll sweep through the large urban areas at first, and less-capable people will drift to smaller towns where they might have another 20 years of occupation still left before automation arrives there.

The rate of automation is probably the surprising factor. Once the 'idea' is hatched, you could be talking about just two years before it's delivered in a package and being demonstrated...ready to sell or install. These automated lawn-cutter systems are a great example of that. Same for these 'wiper-systems' for solar panels.