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2A Work Session 2016 0613
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2A Work Session 2016 0613
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6/5/2019 8:10:11 AM
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CM City Clerk-City Council - Document Type
Staff Report
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6/13/2016
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_CC Agenda 2016 0613 WS
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From: Arlene Lum [mailto:Lum88@pacbell.net] <br />Sent: Wednesday, November 11, 2015 4:03 PM <br />To: info@sanleandrochamber.com <br />Subject: Minimum Wage San Leandro <br />Dave: <br />I can provide some insight of what happened to Oakland Chinatown from a business <br />owners perspective since the minimum wage went in on March 2, 2016. <br />• A number of businesses and restaurants had to close down because they simply <br />could not afford to pay the increased wages. Those business owners that were <br />of retirement age retired; those that were not had to close shop and find jobs <br />working for other people or live off other members of their family. <br />The businesses that did stay open had to increase their prices, driving customers <br />to other cities that didn't have to deal with the minimum wages. Some <br />businesses ended up closing up shop anyway because their business model <br />simply could not substantiate the increased rates. <br />To lower operating expenses, some businesses shortened their operating hours <br />while others cut employee hours. Employees are having to work at multiple <br />establishments part-time to make up for the money they were making from a <br />single establishment. As a result, employees are not loyal to the employers, and <br />not happy, as evident by the poor service they give to the customers. <br />• Employers are now having problems hiring and keeping full time <br />employees. Some employees have found that if they work full time, they no <br />longer qualify for welfare and the medical benefits that come along with <br />welfare. They would rather work part-time or get paid under the table. <br />While minimum wages may appear to help improve the social climate, it is done at the <br />cost small business owners. If minimum wages cause small businesses to close shop <br />and send their employees to the unemployment line, does it really help in the long <br />run? If going on welfare is more attractive than the new minimum wage with OBAMA <br />care, doesn't that tell us that we also need to overhaul the welfare system as <br />well? Since the welfare system is done at the federal level, we should leave minimum <br />wages to the Feds. <br />Ae&e .daw <br />Lum88@pacbell.net <br />510-895=5200 <br />510-305-2533 (cell) <br />
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