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Friday, October 6, 2023

Careful What You Ask For

 Yesterday, I was asked to sign a petition to eliminate the Massachusetts subminimum wage.  Since I am a New Hampshire resident, I did not sign, but as similar efforts are sweeping the country, it is just a matter of time before the movement comes here. My reaction? The road to hell is paved with good intentions.

My arguments come from experience. In the 1980’s, I was a low-skilled high school dropout living alone. Serving was the best opportunity I could find. It was instant cash and, typically, at least one free meal. I did not always make good money, but the overall result skewed towards a livable income. My paycheck? I never opened the envelope.

In the 1990s, I went to college. Pell-grants paid for my tuition and waiting tables paid for everything else. It was perfect. I had time to study while still covering my expenses. In addition, it was flexible. During finals week I worked less, during the summers I worked more.

For ten years after I graduated, no matter what I was doing, I had a serving job, too. It provided instant income. I did not have to wait two weeks or, increasingly, a whole month for a paycheck. Speaking of paychecks, I was still throwing the one from the restaurant away.       

Just last year, when my income was not meeting my expenses, I applied for several server positions. As it turned out I did not need to return, but it was nice to know I could.  

Over the span of thirty years, I worked in many kinds of restaurants, from greasy spoons to exclusive culinary destinations, from casual chains to mom and pops. I met people who were serving for all sorts of reasons. Some were “moonlighting”, some were transients, and some were professionals. Some were high-school students working their first job, and some were recent immigrants navigating their way in a new culture. Some were single parents, and some were bored empty nesters. There was not one demographic that neatly described the population, but we all had one thing in common: we loved the cash and ignored our paychecks. Our grumpier bosses told us the only reason we had jobs was because of the subminimum wage. It seemed like a win-win.  

Enter the well-meaning to save the day, and away we go, down the road to hell.

The first stop?  The eccentric road-side diner. Since the restaurant industry runs on small margins and it takes years to become profitable, the tipped wage is a major factor making entry plausible for the independent operator. Eliminating it, I fear, will be a tremendous barrier for these types of businesses. The big chains, however, will be just fine.

That brings us to the second stop on the road to hell.  Big chains are already responding to systemic change by exacting more control over the servers’ income. In addition, I am sure there will be plenty of loopholes and workarounds to take advantage of, and, ultimately, the server will be worse off.  But the simplest way around paying a person a higher wage? Automation.

Every step of the serving process, except maybe bringing the food, can be easily automated. For an establishment with the resources, all that is required is an incentive, like increased labor costs, and there you have it: an obedient machine that doesn’t need a wage. Server Unit 345 also comes with added benefits. It will not sneak off for cigarettes, require breaks, wear inappropriate attire, call in sick, bicker or complain.  I know we expect restaurant owners to be enlightened and employ people for the greater good, but most are practical. They will ride this trend directly to automation. Server jobs will still exist, but they will be much harder to find.     

Last stop on our road to hell is the dead, downtown pub.  Dining out is already becoming the purview of the wealthy. If labor costs increase, employers will pass those costs onto customers. The individual server may be getting paid more, but what of all the working-class would be diners? We’ll be stuck at home eating beans out of a can.

I support efforts to help working people, like unionization and the living wage. I also think labor, overall, should be valued more in society.  However, instead of focusing on a system that is not really broken, let’s promote ideas that might result in real benefits, like the Basic Minimum Income.  Now there is an exit ramp I can get on.