A politician never does anything without a purpose or a payback of some kind. Obama is a politician. Therefore there’s a payback there somewhere. It took the Center for Union Facts to find out what it was: a rise in the minimum wage triggers all sorts of wage hikes and contract renegotiations all across the country! Isn’t that handy?
An analysis of union collective bargaining agreements available from the Department of Labor’s Office of Labor-Management Standards indicates that many service, retail and hospitality industry labor unions—such as UNITE-HERE or the Service Employees International Union (SEIU)—peg baseline wages to the federal minimum wage. Thus, in many cases, raising the federal minimum wage will either trigger wage renegotiations or automatic wage hikes for certain unionized employees.
This has little to do with increasing wages for those at the bottom level of the pay scale. It’s about getting mandated pay raises for union members. Substantial pay raises:
A number of collective bargaining agreements signed by the Union of Needletrades, Industrial and Textile Employees (UNITE) mandated that “[w]henever the federal legal minimum wage is increased, minimum wage [in the agreement] shall be increased so that each will be at least fifteen (15%) percent higher than such legal minimum wage.”
The analysis lists several other automatic triggers that give union members an automatic pay raise. But raising the minimum wage would also required renegotiating some contracts as well:
An agreement by the Retail, Wholesale, & Chain Store Food Employees Union Local 338 says that “In the event of an increase in Federal or State minimum wage requirements, the employer agrees to meet and discuss those rates impacted by the new minimum wage.”
UFCW 1262 agreed with several grocery store chains that “Should any law be enacted by any state or the federal government which increases the minimum wage, the parties will meet to discuss the effects on employees.”
In other words, Obama’s minimum wage demand is simply payback:
President Obama’s call to raise the federal minimum wage from $7.25 to $9.00 per hour should be seen for what it is: Political payback to labor unions for the millions they spent on his reelection.
Funny. I didn’t see this reported in the lamestream media, did you?