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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
APRIL 13 - 19, 2015
PUBLISHER:
John Campanelli (jcampanelli@crain.com) EDITOR:
Elizabeth McIntyre (emcintyre@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Pay own way McDonald’s earlier this month announced it would pay workers at its company-owned restaurants $1 more than the local minimum wage. The fast-food giant joins other big companies, such as Walmart and Target, that have recently agreed to boost workers’ wages. Some will now pay $9 per hour this year, others will go to $10 in 2016. There are many factors driving these pay hikes: The economy is beginning to pick up. Big corporations, long criticized for keeping wages low, are bowing to public pressure to increase wages. And companies want to stay competitive in a tightening labor market. When workers have more choices, they have more power. And these employers realize that to maintain a strong workforce, they’re going to have to pony up. That’s competition. And that’s good for business. Still, beyond the actions taken by individual employers, pressure remains for a government-mandated raise in the form of an increase in the federal minimum wage for the first time since 2009. The federal rate currently stands at $7.25 per hour, but many states, including Ohio, already have a higher minimum. Some labor groups are pushing for $15 an hour. President Obama floated a $10.10-an-hour proposal. Wage increases are a good thing not only for earners but for the businesses that will benefit from their spending. But they’re not so good when those raises come at the expense of companies that cannot afford it and have no say in the matter. Businesses that can put more money in employees’ pockets — like McDonald’s and Target — should. But the decision to do so shouldn’t be another legislative mandate. It should be determined by the marketplace. McDonald’s, Walmart and Target are proving that the marketplace already is driving wage hikes. So let it. Government-mandated wage increases will adversely affect businesses that run on tight margins — and that means, specifically, small businesses. Basic economics tells us that every increase equals a decrease somewhere else. Salary increases must be paid for from somewhere — so profit margins are cut or prices go up or fewer workers are hired or employees are laid off. If a company is willing and able to make that math work and if it benefits their workers and their business, more power to them. Wage increases often make for happier employees. Happier employees make for happier consumers. Let the free market decide. But let’s not shackle businesses that are struggling to survive by issuing a well-meaning mandate that could potentially force them to cut workers or go out of business. Allow businesses to decide for themselves — with input from their workers, their customers and in concert with the markets in which they operate — whether pay increases make sense for them.
FROM THE PUBLISHER
Here’s your Brando business translator My son is almost 15 and, on most potential competitor. “Keep your friends close,” he said, “but your enemies closdays, he’s more adult than child, so my er.” wife and I recently decided he was ready Despite the cultural signififor an important rite of pascance of “The Godfather” sage. franchise, not every business He was ready to watch “The professional has seen the Godfather.” movies, and investing almost (We also OK’d “The Godfasix hours to do so — nine if ther, Part II.” But we refused to you endure “Part III” — might screen “Part III” — for the not be realistic. same reason we stopped So I’m here to help. If you spanking our children.) haven’t seen the films and Watching these epic films is find yourself in a meeting with really a necessity for anyone a colleague imitating Marlon who wants to speak and un- JOHN Brando, use the translations derstand the language of CAMPANELLI below to figure out what the American culture. I told my heck is being said. son a week will not pass the ■ “We’ll make ’em an offer they can’t rest of his life that he will not notice an refuse.” Translation: We will be includallusion to the movies. (In fact, a few ing Cavaliers tickets in our next proposdays after we watched the first film, we al. saw a horse-head-in-the-bed reference ■ “Frank in sales sleeps with the fishes.” on … an episode of “Barbie: Life in the Translation: Frank in sales told off the Dreamhouse”!) boss and was asked to clean out his desk. My Corleone antennae are now up, ■ “Today, we take care of all family busiand I’ve begun noticing how often Vito, ness.” Translation: Reorganization. Michael, Sonny and Fredo come up in ■ “I made my bones in this business business meetings. when you were going out with cheerLast week, I heard a business leader leaders!” Translation: I’m discovering suggest that a colleague reach out to a
that working with millennials is a challenge. ■ “A man who doesn’t spend time with his family can never be a real man.” Translation: I’d appreciate a little more work-life balance, please. ■ “We’re going to the mattresses.” Translation: The parking garage is raising prices, and we are not going to take it. ■ “Never tell anyone outside the family what you are thinking.” Translation: Do not post work stuff on Facebook. ■ “What have I done for you to treat me so disrespectfully?” Translation: Why did you do a reply-all? ■ “Oh Pauly, you won’t see him no more.” Translation: Pauly has been transferred to IT. ■ “I know it was you, Fredo. You broke my heart.” Translation: I know you stole my yogurt from the office fridge. ■ “There are negotiations being made that are going to answer all of your questions and solve all of your problems. That’s all I can tell you right now.” Translation: We are looking at moving into a high-deductible health plan. ■ “This is business. Not personal.” Translation: It’s personal.
TALK ON THE WEB Re: Other cities crave downtown grocers Hurrah for us. It is great to see Cleveland leading the pack with something so important as this downtown food effort. It proves that when enough people who want to make it happen get together, they will make it happen. It may have taken Cleveland longer than other cities to create a real downtown living environment, but we have quickly caught up and moved ahead of many. Spending as much time as I do in Chicago, I would never think to compare Cleveland to Chicago. Chicago has always had a substantial population living in and around the LOOP so it is only natural that they have even more of everything today.
Now all we have to do is get everyone to start bragging to their local and outof-town friends about how Cleveland is a great place to live whether downtown or surrounding downtown with great culture, great recreation and now great access to great food. Let’s keep it up. — Neil Dick
Re: Insights from the film fest Yes, yes, yes! This article gives a wonderfully accurate picture of the breadth and quality of the film festival … and most especially of the tone of the whole CIFF … friendly, extremely helpful staff, great interaction with filmmakers, and a major focus on making the filmgoers experience a mind-expanding adventure. — LaSalle1948
Re: Join the Internet of Things revolution #IoT is very exciting as is the the #cloud ecosystem IoT will live on. The time for educating non-technical and technology-as-a second language leaders is at hand. We are the best location in the nation. — Todd D. Lyle
Re: LaunchHouse shifts focus I wish this dug deeper. Like, what was the ROI on all the businesses LaunchHouse funded? And how does that ROI compare to other incubators? Summer camps are great, but is it the best use for Shaker Heights nonprofit dollars? — Matt Wilson