Employment

South Dakota Retailers Association’s Bonehead idea

What a great idea! NOT!

Move to South Dakota, work at a designated retail business, and receive $1,000 cash.
That’s the premise of a new incentive from the South Dakota Retailers Association designed to address the workforce shortage in retail, restaurants, hospitality, grocery, trades and many other businesses.
Individuals from out of state who come to work in South Dakota can qualify to receive a $1,000 cash payment that would supplement any hiring bonuses or other incentives offered by an individual business.


It’s been awhile since I have taken a swipe at the SDRA, but this one is almost too easy. Who would move to South Dakota at the beginning of winter to take a no benefits part-time job that pays half of minimum wage (if you are a server) for a $1,000 bonus you don’t get for another 6 months? WTF? When I first read this, I thought maybe it was some kind of joke.

I have argued for a long time that the hospitality industry in South Dakota and across the country should offer at least a buy in to health benefits even if you are part-time. They should also offer PTO and compensate ALL tipped employees the full minimum wage. Minnesota did this several years ago and it hasn’t hurt the industry one bit, some would argue it has improved it.

As I told an elected official yesterday, “The problem isn’t that we don’t have enough hospitality workers in Sioux Falls, the problem is we have to many mediocre restaurants.” You know as well as I do that 99% of eating establishments in Sioux Falls are below average, not just on food quality, but service and price point. Maybe the solution to our problem is to have restaurants that pay their workers well ALL YEAR LONG, offer benefits and in return we will get a better experience as a consumer. But like most things in good old Sodak, it is about the greed of the business owner while the employee and the consumer are left in the dust.

‘Small’ Sioux Falls Business owner says he can’t afford to pay more than $12 per/hr

When I hear these kind of cry baby stories I kind of roll my eyes;

While the average non-management wage was $12, “I can’t afford to pay teenagers $15 or $16 an hour – and they’re going to those jobs – unless I want to raise the price of pizzas by $2,” Porter said. “It gets to the point where it’s a whole to do for not much because it sucks all the profit out. The small guys are getting killed because we can’t afford to pay these large wages.”

Well maybe you need to charge more for your pizza and make a better pizza? Mr. Porter calls himself a small guy. That’s interesting since he owns around 6 fast casual restaurants in Sioux Falls and has a home valued at $600K. Yeah, real small potatoes.

A survey of restaurant workers done in the second quarter by Black Box Intelligence found several factors behind employees who quit their restaurant roles.

More than two-thirds of current and former restaurant workers said disrespect from customers is a factor in the labor shortage.

Nearly half said emotional abuse from managers contributed to their decision to stay or leave, with 15 percent saying they were sexually harassed by managers or co-workers, while another 15 percent said they were sexually harassed by customers.

I would agree that management in the hospitality industry in Sioux Falls is something to be desired. But that is the problem with a right to work state, business owners have full control of you as an employee instead of the other way around. This is why Noem does NOT support mandating businesses because she knows it would throw a wrench in our worthless right to work laws. This is about her protecting the ruling class NOT individual employee rights. If workers had more rights in South Dakota, ‘small’ businesses would have no problem finding workers, oh, and you really need to pay more.

Most employers in South Dakota CAN mandate vaccinations

There has been a lot of back and forth in South Dakota about all of our FREEDOM and LIBERTY that our Box of Rocks Governor has been spouting about, and how she doesn’t support mandates. Unfortunately, Noem has no authority when it comes to private employer mandates. The state legislature would have to change state law in order to prohibit private employer mandates;

Employment relationships in South Dakota may be ‘terminated at will,’ which means an employer does not need a specific reason to fire an employee. This is the same concept as an employee not needing a specific reason to quit a job. Generally, the only exceptions to this rule are when: A contract for employment exists.

Of course, you do have the option to quit if you don’t want to get vaccinated, but you can’t prevent your employer from mandating it and neither can the governor. When authoritarians talk about all the FREEDOM we have here, they are referring to the ruling class, NOT us.

My suggestion is to just go get a shot or a doctor’s note if you are too high risk to get one and you don’t have to worry about your employer mandating it.

Low wages in South Dakota? Get out!

As if this story is ground breaking. I do appreciate the update in our dismal wages, high regressive taxes, and high cost of housing, but this has been going on for decades;

State and federal data routinely show that:

  • South Dakota employers pay some of the lowest wages in the nation.
  • A high number of families pay an excessive portion of their income on housing.
  • The state has a regressive system of taxation.
  • Many workers are not seeing their pay cover the rising cost of living in the state.
  • Meanwhile, the state is seeing a sharp spike in the cost of housing and health care, two critical components of living a happy life.

I will admit over the past 5 years or so I was able to quit my part-time job and only work one full-time job and make a decent living wage. I am also debt free. But this didn’t come from not working hard. I worked around 60 hours a week for over 20 years and I have NO dependents. But sometimes I wonder how much better off I would be if I just got paid a decent wage.

When I moved to Sioux Falls in 1991 my first job paid around $4.20 an hour.

Let’s face it, as long as we keep electing Republican business owners to the legislature we will continue to have regressive sales taxes, low wages and unaffordable housing. We need a progressive state legislature that stands up for workers.

I know, I am dreaming.

I have suggested to Sioux Falls city councilors that they institute a wage listing ordinance that forces businesses to list there minimum/maximum wage in a job listing for the Sioux Falls metro. Research has shown that not only will employers pay more they will get better and more applicants. It’s not just a win for workers it is a win for businesses.

It’s time we stop screwing around, especially in Sioux Falls, and invest in our workers.

We need to stop incentivizing businesses with TIF’s and Tax rebates in Sioux Falls

As I said a few months ago, it was baffling to me why we would give a $94 million dollar TIF to incentivize businesses to come here. First off, it is pretty obvious we don’t need anymore job creators currently;

To find out more about what might be going on, I reached out to Secretary Marcia Hultman, who leads the South Dakota Department of Labor.

“What you are seeing and what we’re hearing anecdotally, the numbers really support,” she said.

They definitely do. The most current number she could pull for me Friday was 23,500 active job openings in the state’s database. Nearly 10,000 of those are in the city of Sioux Falls.

You read it correct, 10,000 available jobs in Sioux Falls, and we want to incentivize business to come here? It’s ludicrous. Factor in our schools are over crowded, affordable housing is a rarity (where we should be investing tax rebates) and building permits are through the roof. If anything we should be giving the tax rebates to the citizens to create more affordable housing and propping up our current infrastructure instead throwing it at Egg Roll factories owned by Koreans.

I also found this interesting in the article;

Another tip: You should list a wage with your opening.

“Statistically, if the wage is posted, even if it’s not the best, those job orders get more activity. If nothing is listed, the assumption is that it’s low,” Hultman said.

Nearly every business I talk to has increased pay, some significantly. Frankly, that’s not a bad thing, to me, in a state that has struggled with persistently low wages in some sectors.

I have often said the city council should pass a city ordinance that any job listed within city limits should have the minimum and maximum pay listed in the ad.

It’s time to end most if not all TIF’s in the city and tax rebates for the supposed (low wage) job creators and start helping the people who live and work in this city with more affordable housing and propping up infrastructure, and we can do it without welfare to big business. This is what happens when you have a partisan greedy mayor on cruise control and a former developer executive running the city as Chief of Staff.

Ironically, when she left the city the first time she met me for coffee. She told me the deciding factor to leave the city, besides the last mayor being a total jackass was that she was forced to write the Sanford Sports Complex TIF which she felt set a bad precedent for TIFs because of it’s size and that it was NOT for housing or blighted property. Funny how her feelings have changed on the Tifiliciousness of TIFs and doesn’t seem to bothered by the bad precedent she set.