Michigan

Michigan Restaurants Being Forced to Pay Higher Wages

2021-05-17
Matthew
Matthew Donnellon
Community Voice

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The Covid-19 pandemic changes a lot of things.

Because of social distancing, many workplaces were forced to close down, some permanently.

One of the hardest hit sectors was the restaurant industry. The restaurant has been in an ongoing battle with the state to try and remain open during the pandemic, some completely disregarding laws entirely.

Now a new problem is emerging.

They are having trouble finding people to work for them.

Restaurants are in a dire labor shortage. Not just sit down establishments, everywhere you look fast food places are posting new hours because they do not have the manpower to keep the restaurants open.

For many eateries the day of reckoning has come.

Traditionally, restaurant workers, especially back of the house workers, are low paid and forced to work long hours. And the pandemic is only making it worse.

With Covid-19 waiters are forced to not only serve but now are forced to enforce public health protocols.

Saru Jayamaran, president of One Fair Wage, highlighted the concerns workers were having to Eater, ““We’ve just heard from so many, literally thousands of workers who are saying it is just not worth it anymore. It is not worth it to be paid so little, to get so little in tips and to have to put up with so much more in terms of responsibility, health risk, hostility, and harassment.”

Restaurant Dive reported the top three reasons workers are leaving their jobs, “ The top three reasons restaurant workers are leaving their jobs are low wages and tips (76%), COVID-19 safety concerns (55%) and concerns over hospitality and harassment from customers (39%).”

Restaurants around the country are in a bind and they are being forced to pay up as people are returning to eating in restaurants as states ease up restrictions, but there are more people who want to eat in a restaurant than want to work in one.

There are a number of reasons people aren’t returning, “Some of the unemployed are reluctant to return to work for fear of contracting COVID-19, while many women have left the workforce to take care of children who are still in online school. Because of an extra $300 in unemployment aid, some of the jobless are receiving more in benefits than they earned at their old jobs.”

With so many fewer people coming through restaurants, workers relying on tips saw their wages drop dramatically, “87% of workers report that their tips have decreased since COVID-19, with 69% saying tips have declined by at least 50% or more, OFW's report found. That drop has been most significant among Black restaurant employees, of which 90% said they experienced at least a 50% decline in tips or more, compared to 78% of all restaurant employees, according to a February One Fair Wage report.”

The shortage is forcing restaurants to start paying higher wages in order to get their people to come back, as well as other benefits.

One such restaurant is the Southerner, a restaurant in Saugatuck, Michigan run by chef and co-owner Matt Millar, he addressed the low pay, ““There are jobs that need to be done and not all of them are glamorous, but they are all worthy of a living wage,” he said. “I think we have to resign ourselves to the idea that we’ve failed low-wage workers for a long time. We need to start making some changes.”

The Southerner went through a number of changes. For instance, those who don’t receive tips will now get $15 dollars an hour. Employees who get tips will still get $3.67 an hour but should they not average out to $15 an hour the restaurant will make up the difference, other changes include, “He announced in a Facebook post all full-time employees would be eligible for health insurance with dental options. The restaurant is also offering paid family leave with four weeks for maternity and two weeks paternity leave.”

A number of restaurants in the state are making similar chances, like raising the hourly wages, and many are pooling tips so people get an equal share of the cut.

It’s not just formal restaurants. Fast Food places are also raising their wages, some to $15 dollars an hour.

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Matthew
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Matthew Donnellon
Matthew Donnellon is a reporter and writer covering topics in business, politics, the environment and science. His work has appeared...