Proponents of a $15 per hour minimum wage should be careful what they wish for. For some, it will amount to a 50 percent pay raise from $10 to $15 per hour. But for others, it will mean a 100 percent pay reduction as their job is replaced by technology.
Recently I visited a popular “fast-casual café” chain and
was surprised to see that in place of the cashiers were ordering kiosks –
essentially tablet PC’s with credit card readers attached. From the easy-to-use
prompts and beautiful pictures of the menu items, to the available nutritional
information and sandwich customization options (no tomatoes, thank you), I
ordered and paid for my lunch without speaking to another human. After
ordering, I found a seat and displayed my receipt that was printed at the
kiosk. A few minutes later a smiling employee brought my soup and sandwich (as
ordered, with no tomatoes) to my table on her way to delivering several other
meals as well. I thought to myself “Welcome to every fast food restaurant in
the future.”
It’s simply a matter of economics. Assume a tablet PC and
card reader cost $500 each in bulk. A 40-hour work week at $15 per hour is
$600. With no sick time, no health care benefits, no dealing with withholding
taxes and payroll services, no training issues and no personnel management needed,
technology will continue to replace entry level jobs in more and more
businesses.
And therein lies the problem. Many of us learned
important life skills working entry level customer-facing jobs. Responsibility.
Dealing with others. Customer service. Promptness. Courtesy. How to make change
for a twenty.
Two years ago the minimum wage was $8 per hour. Today it
is $10. A move to $15 will represent nearly a doubling of labor costs in just a
few years, and accelerate the move away from cashiers and toward ordering
kiosks and the reduction of labor.
I oppose an increase in the minimum wage not with malice
toward those who would get a 50 percent raise, but rather, with empathy for
those who will see a 100 percent pay reduction.
