Pay Cut Takes 400 Employees to Minimum Wage (VIDEO)Danielle Smith
Don’t we use those paychecks to balance our family budgets, to pay our bills, to save? Of course we do.
So, what would happen if your employer suddenly told you they couldn’t pay you your full salary anymore? That instead they were going to pay you less than HALF of what you had been making?
This is apparently what is happening in Scranton, Pennsylvania. Mayor Chris Doherty tells NPR the city doesn’t have the money to pay the city’s employees their full salaries, so instead they will (effective yesterday) make the state’s minimum wage of $7.25/hour. The mayor is taking the same pay cut. According to the article, the cause of the problem is the city’s declining population, an out-of-balance budget and a mayor and City Council at odds with how to resolve the problem.
This effects nearly 400 employees including firefighters, police officers, and public works. The unions for those three groups are taking the city to court, claiming the mayor’s action is illegal.
It will be interesting to see how this will be resolved in the coming weeks…. Until then, I’m hoping the gap in pay doesn’t put too much of a strain on those families.
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