New Minimum Wage May Mean The Elimination of Artisan Bakeries in NYC
DAVIDOVICH LOVES IT WORKERS AND IS STAYING IN NYC
NYC, December 26, 2017 – As 2018 approaches NYC employers are faced with dramatic increases in the Minimum Wage paid to their employees. This increase has been publicly debated and discussed and the voices of NYC’s residents and government have been heard in favor of a significantly increased minimum wage to “lift up the standard of living of New York City’s most valued asset: its workers“.
Many NYC companies have analyzed the impact of this increase on their bottom line and have determined that they simply can not absorb the additional labor cost. It isn’t about politics or about being anti-labor or even corporate greed for most of them. It is about economics. For food companies, in particular, who survive on slim margins of under 20%, an increase to costs of 10-12% is the difference between survival and extinction.
For these employers they have only two options:
1. Relocate from NYC’s jurisdiction entirely. Many jurisdictions have minimum wage requirements that are nearly half of NYC’s. New Jersey, for example, will require employers to pay $8.75 at a time that NYC will require $15 per hour. This relocation will save companies significant dollars and help keep them financially viable.
2. Stay in NYC but completely automate. This option will replace minimum wage dependent people with machines that can be very productive and are not subject to such restrictions.
In either scenario the NYC worker will suffer complete loss of employment as their jobs are eliminated. This unintended consequence will devastate the very workers that the minimum wage law is designed to assist. $15 is only helpful to the workers left behind and who are actually employed. There are no known figures on the impact on the local and regional economy from these dramatic, unprecedented changes in labor costs. The outcome could be very grim for many companies and employees alike.
Davidovich Bakery, the baker of the world famous Davidovich Bagel, like many other food manufacturers in NYC, is an Artisan Baking Company. This means the very nature of its production depends on our beloved workers. Over the years so many in the baking industry have chosen the path of automation and the elimination of manual labor, but at Davidovich we have stayed TRUE to our Artisan nature. It is for this reason Davidovich Bagels have retained their essential, Artisan, traditional character and are beloved all over the world. However, we face the same challenges as other food manufacturers in NYC are are now faced with dramatic and hard choices. The ownership and management have spent many sleepless nights discussing the options and have come to an important and dramatic decision- We have decided to remain in the heart of NYC and continue our Artisan way of life. Davidovich Bagels, NYC’s authentic hand-made, kettle boiled, plank baked, Non-GMO Certified Bagels, will continue to be manufactured and baked in NYC.
Why have we made this decision?
We believe consumers have come to trust us as the TRUE link to old world Artisan baking and we can not betray our very nature nor can we betray our beloved customers.
So what are we to do?
We can not simply ignore the reality that we will facing a huge increase in Labor costs in just a few weeks. Davidovich’s only option is to hope that the buying public in NYC and beyond really does believes in and support increasing the standard of living for workers like ours and are willing to do more than just vote on Election Day. More important than casting a vote for mayor and Governor on this issue is supporting Artisan Companies like Davidovich. We believe that consumers will be willing to pay a little bit more for hand-made, Artisan baked goods like ours. We believe that consumers will be willing to look for labels and look for companies that still make their beloved baked goods the Artisan way and know that by buying those goods they are not only getting the best products in the marketplace but they are also supporting the cause of lifting up Artisan labors everywhere to new heights and to new standards of living.
We have passion and purpose in our cause of bringing the best baked goods to the world but now we also have deep pride in our commitment to our people and their families and to giving them an opportunity to achieve all that the American Dream has to offer.