A rise in the U.S. federal minimum wage, which hasn’t been increased since 2009, has reportedly made some cinema exhibitors nervous.
The current U.S. minimum wage is $7.25 an hour, with Congressional Democrats now wanting to raise that to $15 by 2025. The plan would also impact minimum wage for tipped workers (just $2.13 an hour).
Several states are already on track to reach a $15 minimum over the next few years, including California, Illinois, New York and Florida.
As the film industry relies heavily on part-time workers who make at or near local minimum wage, smaller cinema operators outside the big markets are concerned that such a change would make it much harder to turn a profit.
One Texan exhibitor tells Variety: “That would kill us. We couldn’t justify raising our admission prices and concession prices to compensate for that kind of increase and still expect people to patronize the business. It would be disastrous.”
Another in New Mexico fears it will mean more competition for low-skilled jobs and so those with no working skills won’t be hired: “I think it’s a real disservice to the young, unskilled employee when we start pricing them out of the market. We’ve hired 16-year-old kids that don’t know what a broom is, much less how to use it.”
So far the National Association of Theatre Owners has not taken a position on the federal minimum wage increase, but have been adamantly opposed in the past. Countries like Australia meanwhile have USD$15/hr minimum wage and cinemas there have been faring just fine.