Yesterday Byron York posted an article in the Washington Examiner about the coming increase in the minimum wage for federal contractors. The minimum wage for federal contractors will go from $7.25 and hour to $10.10 an hour. This will include fast food workers, laundry workers, and other low paying jobs on military bases. So what are the consequences?
The article reports:
In late March, the publication Military Times reported that three McDonald’s fast-food restaurants, plus one other lesser-known food outlet, will soon close at Navy bases, while other national-name chains have “asked to be released from their Army and Air Force Exchange Service contracts to operate fast-food restaurants at two other installations.”
…The administration is making it very expensive to do business on military bases, and not just because of the minimum wage. Under federal contracting law, some businesses operating on military installations must also pay their workers something called a health and welfare payment, which last year was $2.56 an hour but which the administration has now raised to $3.81 an hour.
In the past, fast-food employers did not have to pay the health and welfare payment, but last fall the Obama Labor Department ruled that they must. So add $3.81 per hour, per employee to the employers’ cost. And then add Obama’s $2.85 an hour increase in the minimum wage. Together, employers are looking at paying $6.66 more per hour, per employee. That’s a back-breaking burden. (Just for good measure, the administration also demanded such employers provide paid holidays and vacation time.)
These are the actions of an administration that does not understand or value our military and does not understand basic economic principles. The Obama Administration has already begun to make changes in the way the military exchanges are run that will change the savings our military get on food and clothing (see rightwinggranny.com). We need to elect leaders who value our military and take care of them.