ORLANDO, Fla. — When service workers began rallying for $15 per hour wages a few years ago, it was seen as a bench mark to lift many families out of their struggle to survive.
“When we won $15 a few years ago, that was a historic raise that made an enormous difference in people’s lives,” UNITE HERE Local 737 President Jeremy Haicken, who leads negotiations for many Disney employees, said.
>>> STREAM CHANNEL 9 EYEWITNESS NEWS LIVE <<<
Over the past 12 months, the cost of living rose 5.4% nationally, according to the Bureau of Labor Statistics. What cost a dollar last year will set a consumer back $1.05 today.
With the recent sky-high inflation, that difference is being felt less and less.
READ: With shipping bottleneck in California, Florida ports roll out red carpet
In Orlando, $15 per hour is no longer enough to rent a one-bedroom apartment and still be financially stable, reports have shown.
While some groups like seniors and retired veterans will enjoy an automatic adjustment to their income via Social Security hikes, regular workers – including the service industry – are making do with less.
READ: The country’s high inflation rate: What to know & how long it will last
“The inflation is gonna keep you exactly where you are,” Melvin Cash, who works as a better-paid forklift operator but still isn’t back to 40 hours per week, said.
Some people have tried to blame the inflation on the march for higher wages, but economists say that isn’t the case.
READ: Newly released documents shed light on Miya Marcano disappearance
The recent rise in prices is connected to the bottleneck of cargo ships off the coast of Los Angeles. Not only are consumer goods held up, but so are parts for many items assembled in America. Paired with another backlog in Asian factories, costs are being driven up for manufacturers.
“The way that the increase in the minimum wage is happening is that it’s being phased in over a number of years so that the economy and employers have time to adjust,” University of Florida economics professor Amanda Phalin explained.
This browser does not support the video element.
READ: Divers find SUV of missing Ohio mom, 2 children on river bottom after nearly 20 years
Phalin said the economy would have been shocked if wages doubled overnight rather than the patchwork of raises being implemented across the state and country. Florida’s minimum wage won’t rise to $15 per hour until 2026.
Haicken said not raising wages for the lowest paid employees as a reaction to rising prices, even if those raises result in some costs being passed on, would be more damaging.
READ: Black Friday 2021: Best Buy, Target, others announce early holiday sales
“Workers need more money in their pockets to be able to pay the bills they have now,” he said. “Not getting a raise isn’t going to help them pay their bills.”
Inflation is expected to stabilize once the shipping backlog is cleared, which experts predict will happen within six weeks.
This browser does not support the video element.
Click here to download the free WFTV news and weather apps, click here to download the WFTV Now app for your smart TV and click here to stream Channel 9 Eyewitness News live.