The Notorious Training Wage

Posted: May 29, 2014 in Business and the Economy, Costs of living, Ethics and Morality

Yesterday, May 1, 2014, a Seattle mayor’s committee approved a phased in $15 an hour minimum wage for all workers in Seattle. The details are complicated by a compromise that included input from businesses and workers’ groups.

The one proposal offered by a business owner is a lower training wage, usually paid for a determinate period of time. The way this is wrong is too many businesses just fire workers at the end of the training period because it is so easy to train new people and take advantage of the lower wage. Sears, which is following Montgomery Wards into oblivion, is famous for doing that to escape paying health benefits in Washington State.
I will grant that any job with a modicum of complexity that takes a good period of time to learn won’t fall prey to this scam. So anyone who isn’t cleaver enough to learn the more complicated job would just have to live with the training wage. Fortunately, this is not a part of the proposal in Seattle and, with vigilance, activists can keep it from happening.

Here is the challenge for activist groups. Don’t waste time trying to get a $15 an hour now. Keep your eyes on the sparrow, and make sure the proposal doesn’t get messed up with bad parts.

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