We’ve all heard the story about the goose and the golden eggs. In the end, they killed the goose and there were no more eggs, or so the story goes.
Let’s see what is happening in California:
American Apparel is in the process of shedding its Los Angeles facilities — possibly in preparation for a move, the sources said.
One said the company could shift manufacturing out of California before its downtown Los Angeles lease runs out, possibly next year or in 2018.
Earlier this year, a Hawthorne facility that dyed fabrics was closed.
A Los Angeles factory that handles knits will be closed in October, according to a letter sent to employees.
“The company will be implementing a reduction in force,” the letter said, “and plans on terminating the employment of those employees at that location on October 11, 2016.”
Another in South Gate, which is still operating, has shut down its denim operations. The company has also sold equipment used to make sweaters, shoes and hosiery, the sources said.
The operations will apparently move operations to Tennessee, North Carolina, or South Carolina, or places where the minimum wage is $7.25. As any employer will tell you, this will mean savings once California’s minimum wage climbs to $15 an hour in 2020.
Of course, it’s more than savings. It’s also about jobs, as the workers will soon learn after they get their official notices that the company is moving.
In the end, it’s about reality not a politically determined minimum wage. It’s also about getting employees to understand that politicians who talk about arbitrarily increasing the minimum wage are trying to win elections rather protect jobs.
On a related note, California is # 48 in the Cato Institute Freedom Index. The states that they are planning to move to are doing much better.
Wonder why so many businesses are leaving California?
Tags: The minimum wage and jobs To share or post to your site, click on "Post Link". Please mention / link to the My View by Silvio Canto, Jr. Thanks!
