The leader of the union representing tipped service workers in the Syracuse area says the base wage hike will not only benefit employees, but also the larger economy. The State Labor Department this week approved a $7.50 hourly wage to take effect at year's end for waitstaff, banquet servers, and other hospitality workers who also receive tips. President of Unite Here Local 150, Ann Marie Taliercio, says the 50% increase will help some at the bottom of the scale and shouldn't hurt business.
"I know many of my employers under a labor agreement with Unite Here Local 150 pay more than that anyway as a base wage. Some pay the minimum and some pay more. Saying we are going to lose jobs and we are going to lose business is a traditional argument you hear from businesses every time the wages go up."
But Taliercio says workers will still rely on tips to make a decent income.
"That's why most people engage in this business. They enjoy good service and expect to be compensated. Having tips helps the employers employ people are willing to do top-notch service. Restaurant workers deserve fare wages and a stable paycheck and work in an environment where the majority of their income is not from tips alone."
The 50% increase brings the tipped worker wage closer to the regular minimum wage, which will rise to $9 an hour at the end of the year. Maria Myotte of Restaurant Opportunities Centers United says their larger goal is to close that gap altogether.
"It's definitely a step forward. Generally, across the country, our allies and the public agree that it is time to get rid of the two-tier wage system and pay all employees a regular minimum wage."
Government Affairs Coordinator at the New York State Restaurant Association Jay Holland calls the plan extreme and rushed. He says the sharp wage hike will have a severe impact.
"We're hearing a lot of people say menu prices aren't just going to take care of this. We can't pass all of this onto the consumer. We're going to have to cut people's hours, we're going to have to shorten shifts, we're going to have to cut back on our labor force in order to deal with this."
Holland says the Association would have preferred a phased in approach, like the minimum wage for non-tipped workers. Holland says the Association believes waitstaff are fairly compensated through tips, and most end up making above the non-tipped minimum wage, but he says that could all change.
"One concern I've heard from the actual employees is that once this wage increase takes effect, the tipping public will actually decide to take that 20 or 15% and knock it down to 10% which combined with possible hour cuts is actually going to decrease the amount of money that they take home."
Holland fears that smaller, independent restaurants, like those in Armory Square, won't be able to keep menu prices low enough to absorb the increase.
