Emmer responds to criticism over service worker minimum wage plan
Wednesday, July 07, 2010 at 7:25 am
Republican endorsed gubernatorial candidate Tom Emmer emailed supporters Tuesday evening defending his recent statement that he’d decrease the minimum wage for tip-earning workers. Emmer took heat from DFLers and unions a day after making the comment at a St. Paul restaurant on Monday. He said that “tip credits” — a lowering of the minimum wage for tip-earners — is not “cutting wages” but instead will help servers and bartenders.
Emmer wrote:
Yesterday we kicked off the next phase of the Freedom and Prosperity Project. We are talking with different businesses around the state about the most important issue in this election: jobs. The first stop was at a restaurant where we listened to the owners talk about things state government could do to keep and grow jobs. They mentioned a tip credit, already in place in 43 other states including all of our neighboring states.
When a reporter asked if I supported the concept of a tip credit, I answered yes. I want the wait staff at a restaurant to be successful and make as much as they can, and a recent study published in Applied Economics Letters shows that tip credits have essentially no negative impact on wages for tipped employees. So contrary to what some people are saying, I have no interest in “cutting wages.”
Tip credits can impact jobs, and in a good way. Tip credits can help employers hire more people, or pay other employees higher wages. In today’s economy, we have to do everything we can to grow jobs, including hospitality jobs.
When the Legislature tried to raise the minimum wage, I supported a modest tip credit, freezing tipped employees at the current minimum wage to account for the wages they received as tips. This proposal was designed to prevent layoffs at bars and restaurants across the state as we headed into the recession. And, in fact, over 4000 jobs were lost last year in the hospitality industry as the recession took hold. Ultimately, our legislative leaders refused this modest concession.
I am a strong believer that a paycheck is better than an unemployment check. Job losses and business closings aren’t good for anybody. The United Auto Workers Union learned that lesson the hard way, as our auto industry almost collapsed at least partly due to an unwillingness to negotiate wage, benefit, and work rules that would have kept the industry afloat.
This election is about jobs, and ensuring that the government doesn’t keep getting in the way of job creation.
I will continue to focus on improving this economy to create and protect jobs in every part of the state.
14 Comments
Comment posted July 7, 2010 @ 8:42 am
“Ready, Fire! Aim…”
Does this guy think before he speaks?
I think not.
Comment posted July 7, 2010 @ 9:35 am
Let me get this straight: the reason 4,000 jobs in the hospitality industry were lost is because wages are too high. It had nothing to do with a severe economic downturn and a fall-off in demand for the services of that industry.
Got it.
Comment posted July 7, 2010 @ 9:41 am
How stupid is this guy about business? If you get to cut a major expense like server wages by 2/3rds, you don’t look to find a way to increase that line item back up to old levels. You hire people when you need them. You give people raises when you need to…
You just cut your labor expenses and increased your profits while running your business exactly the same. Cut prices? Why unless your competition cuts theirs. You just increased your profit level so you will bank it or take it as personal profit.
Emmer is a drag on the whole Republican ticket if this is the kind of solutions without problems they are trying to push.
Comment posted July 7, 2010 @ 10:32 am
Wow, Randy, reading is fundamental. Go back and read that line again.
Emmer isn’t “pushing” anything. While he was in a restaurant, a reporter asked him a quetion about this issue. He gave his honest opinion, describing how most other states do it and their rationale.
His only point, to you economics-challenged readers, is that with a lower mandatory wage, an employer can hire more peoeple for the same amount of money. And if those people don’t really depend on their wage to make a living because they make most of it in tips, that idea may be a good one when a lot of people are looking for work.
Man, you guys are dense.
Comment posted July 7, 2010 @ 10:40 am
Let’s try to be clear first. The “tip credit” Emmer refers to is a lower minimum wage standard for those who receive tips. So restaurants may pay less in hourly rate if you earn tips.
That is a wage cut, pure and simple.
He says it will “help” servers …. i guess if you pay each one less, a restaurant could afford to have more servers.
Make no mistake – this is simply a transfer of money from servers to hospitality business owners. And Mr Emmer doesn’t talk about them needing to make less income, to spread the business around among more restaurants so more restaurant owners can be minimally successful.
Mr. Emmer still believes that it’s workers – servers, teachers, firefighters – who are the problem in the US economy – if we’d just lower our wage demands, everything would be fine.
I reject his class warfare against those among us who take home the least. Let Mr. Emmer calls for sacrifice by business owners, not just the wage earners who help those owners to earn profits
Comment posted July 7, 2010 @ 12:43 pm
This discussion of wage distribution is not unlike the nurses strike debate in that the nurses wanted more money, but they also wanted the employer to hire more people per shift.
In a bad economy, you can’t have both without the employer going broke. So you’re either for helping out-of-work people find jobs with your employer, or you’re greedy and want to keep your already-higher-than-most wages and let the unemployed suffer.
Which is it, “progressives?”
Comment posted July 7, 2010 @ 1:50 pm
Hey dumb dumb Denise.Try working for less than minimum wage.Thanks to your repulsive republican buddies and their corporate masters that decided to export most of the decent paying jobs to Mexico,India and China,this country is self destructing.What a waste!!!
Comment posted July 7, 2010 @ 1:57 pm
“In a bad economy….” – people still get sick and still need health care.
But, what do you care? It simply sucks to be them.
Of course, in this “bad economy” it certainly doesn’t suck to be, say, Stephen Hemsley.
Billions for CEO types, and screw the hired help – that is what November’s election is all about; the GreedOverPrinciples Party sticking up for the Stephen Hemsleys and Tony Suttons and Bill Coopers and the DFL sticking up for nurses and waitresses and tellers.
Oh – and thank you for proving, once again, that:
“Those that forget the lessons of history, tend to vote GOP.”
Comment posted July 7, 2010 @ 2:54 pm
Dennis, the bad economy had nothing to do with the nurses’ strike. The hospitals in question had made $750 million in profits the year before and yet they were asking nurses to give up ground on wages, pensions, furloughs, and the number of workers per shift. Clearly, the nurses made an initial offer that they didn’t expect the hospitals to accept, hoping to reach compromise.
The hospitals admitted that the only new demand was setting strict ratios of workers per patient, which hospitals liberally estimated at costing $250 million total per year. States already have ratio laws for daycares, but hospital units outside CA are exempt from even very weak ratios.
Comment posted July 7, 2010 @ 5:01 pm
I would think that instead of having 3 100K servers, it would be better to have six 50K workers. And Obama got crap talking about redistribution of wealth! And since when did any conservative have any care for the unemployed? Face it Dennis, Emmer screwed up here, just about as big as you are a screw up. Emmer will lose in November by double digits.
Comment posted July 7, 2010 @ 5:04 pm
Emmer is an idiot. Let him work for minimum wage and tips. Let him give back all the per diem he collected and then filed a law suit about. What a clown!
I stopped going out to eat when they banned smoking. I now have a ton of money saved and can eat and smoke all I want with my meals at home. I don’t even have to tip the cook or the people who serve me my meal.
Emmer=idiot in my book
Comment posted July 7, 2010 @ 10:12 pm
Someday, after the economy collapses, fiscal conservatives may begin to remember that there is more to an economy than business profits. The American worker/consumer is critical to our economy, and recovery is not possible without a prosperous working class.
The constant upward redistribution of wealth, the endless assault on labor, the mindless class warfare against the working class, all of these things are eroding the very viability of our economy.
Idealogues like Emmer need to learn, sooner rather than later, that when you cut wages, you cut the primary means of sustainable economic growth. You just cannot strengthen a business by shrinking it’s customer base.
Comment posted October 31, 2010 @ 10:32 am
if you hire more servers in an economic recession….you just have more people on the clock making less money. I don’t really want more than one server for 20 customers. This doesn’t have anything to do with nurses! come on folks! really? Nurses are so stressed out and work so hard to provide the best care for our sick and we have the nerve to comment on that? do you know a nurse? are you aware? please don’t compare our nurses with our servers. restaurant owners are not making millions like the hospitals are. they don’t pay their workers/managers nearly what they’re worth either. but not because they pay $5.00 more per hour to their staff than our surrounding states!
Comment posted November 4, 2010 @ 1:33 pm
The only way the tip credit can create jobs is if there is a provision added to it explaining that the money employers will benefit from this credit must be spent on employing more employees. The way the law currently stands. Employers can simply pocket the financial benefits derived from the ability to steal part of the tips customers are presenting their workers.
The tip credit should be repealed on the grounds it is a law that underhandedly steals the public’s charity intended for underpaid workers in the service industry.
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