Employment

Higher Wages is the ONLY answer to a worker shortage

It seems Omaha is struggling with the same thing we are in Sioux Falls, low wages and trouble recruiting;

Nebraska business leaders have been sounding the alarm on the state’s shortage of skilled workers, seeking to get politicians to do more to help the state attract the workforce it needs to grow.

But there’s something CEOs themselves can do to pull in more workers: pay higher wages. And it appears that if Omaha’s employers want to be competitive in the job market, they may need to do that.

What often surprises me is the resistance to pay higher wages. I have argued when your employees are making more, they are spending more. That means a better local economy and more tax dollars for a better community. Keeping your workers poor really only makes you richer in the short term but hobbles the economy in the long term. Aren’t you tired of watching the local news telling us every night that shelters, food kitchens and food pantries continue to grow and expand? I am, it is something we shouldn’t be bragging about. Sioux Falls is an attractive city, why not make it more attractive by paying higher wages?

FF 24:20 (This was at the Sioux Falls Rotary)

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, takes audience questions during a meeting of the Rotary Club of Downtown Sioux Falls, South Dakota, on August 7. 2017.

Interesting labor study by the US Chamber of Commerce

There are some fine points in this short article, but I found this paragraph fascinating;

In our dynamic labor market, workers are continually shifting between jobs or moving in and out of the market. Over on the employer side, jobs are continually being filled as new ones open up. Consequently, the individuals available for work and the jobs open are not the same from one month to the next, but the trend toward fewer available workers relative to the rising number of job openings shows, in broad terms, the increasing tightness of the labor market.


Of course, available workers vary in terms of experience, skills, and location, so they may not match the occupational, skill, location, and other needs associated with job openings. This “mismatch” problem becomes especially critical when the Worker Availability Ratio is relatively low, as it is currently.

These stats will eventually go topsy-turvy, in other words, there will soon be a shortage of skilled employees. Employers really will be ‘forced’ to not only pay higher wages to attract people but they will have to train those people also. In our state and city employers are trying to get taxpayers to foot the bill for this training, even starting blue collar job training programs as early as middle school. I don’t have an issue with that, but employers need to pony up also (some are) by offering on the job (paid) training and once that training is completed successfully, higher wages. Some say money doesn’t equal happiness, but I can’t buy groceries with a smile.

We don’t need more services for the poor – we need higher wages

There was an announcement this week that the School for the Deaf was purchased to become a center for helping people living in poverty. As we all know, it will probably be tied in with some kind of ‘Ministry’ like most services for the poor are in Sioux Falls. But that is NOT the issue with the project.

It seems over the past couple of years our services for the poor have been exploding in Sioux Falls even though unemployment is very low. Feeding SD has expanded, the Banquet is building another location, The Barrel House restaurant has held several fundraisers for school lunches, The Bishop Dudley house has been built and likely will expand, the St. Francis House is expanding and so is The Glory House.

The Thrive report last year told us the problem, people can’t afford housing in Sioux Falls on the wages they are making. Sioux Falls also doesn’t have rent control ordinances.

While I commend those who want to help the working poor, creating more services for the impoverished doesn’t solve the underlying problem, LOW WAGES, Right to Work laws, and restrictions on Unions.

Not only do higher wages help to relieve poverty, they actually help the economy. When people make more money, they spend more! Raising wages would be a boon for our community.

I also see a secondary solution to poverty. I think the city, county and state should invest in a FREE birth control program, and I’m not just talking about FREE condoms at Monk’s House of Ale Repute, but women being able to get a prescription FREE. In Colorado State, with the influx of taxes from Marijuana sales they implemented a FREE birth control program. In the first year of the program’s usage, teen pregnancies were down 40%!

I know the good Christians in Sioux Falls want to do the right thing and help the poor, and we will never be able to eliminate poverty totally. Some people can’t work due to disabilities, some are just too old and others are just damn lazy. But I think workforce development tied in with family planning would go a lot farther then handouts, which are just subsidies to companies who want to pay low wages while the stockholders get richer by the day without paying a corporate income tax.

We need to stop the ‘Whack a Mole’ mentality when it comes to poverty in Sioux Falls. We need to start paying people living wages and educating them on SEX.

Sioux Falls City Salaries released

The numbers just came out this afternoon, so I have yet to fully review them. But after a quick look I was surprised to see that a lot of the mid-management got around $7,000 raises. I guess what surprises me is that sales taxes only went up about 3.5% from the year before (still waiting on final numbers).

Funny how the building permit numbers and raises come out almost instantly after January 1st, but we are still waiting on sales tax returns.

One surprise that stuck out was the City Clerk’s raise of $7,446. When Tom Greco was hired after retiring from the military, he was put at the top of the pay scale immediately, even though he doesn’t have a city clerk certification. In fact, after promising to get that certification, he still doesn’t have it. I guess I don’t understand that large of a pay raise when he still has to receive certification after 3 years. Also, his two assistant city clerks actually have more tenure, experience and certifications than their boss, go figure.

Here are the past three years of salary records;

2019-Wages

2018-Wages

2017-Wages

Business owner who complained about Teen Minimum wage expands business

Funny how these things happen;

B & G Milky Way franchise owner DiAnn Burwell said “I’m here from open to close, every day, making sure the stores run right. I do my own accounting, I do my own ordering, I do my scheduling,Ii do everything. If I could afford to have somebody do that for me, I would, so $8.50 an hour scared me to death.”

Dropping the minimum wage for teens under 18 a dollar, from $8.50 to $7.50 an hour, may help some small business owners like Burwell.

“DiAnn gave a big sigh, it eased the pressure off me somewhat,” Burwell said.

It seems the only thing she was worried about was her bottom line, which seems to be doing just fine two years later;

The franchisee, a Sioux Falls couple, will operate the new location along 41st Street just east of the Harmodon Park entrance, said Bruce Bettmeng, who owns B&G with his wife, Pam. The Bettmengs will own the land and building, and lease it to the franchisee. The couple isn’t ready to announce their ownership yet, Bettmeng said. The wife worked for him at the B&G on West 12th Street about a decade ago.

If there is any argument behind raising the minimum wage, it should be it’s GOOD for business. I find it hard to believe they can continue to sell this successful franchise if the franchise owners were struggling to pay employees.