Joseph Sabino Mistick: Klavon's wage hike great for business and workers

When Klavon’s Ice Cream Parlor in Pittsburgh’s Strip District recently doubled its starting wage to $15 per hour plus tips, the owners quickly received over a thousand job applications for 16 positions they were unable to fill under the existing minimum wage.

This rush to scoop ice cream at the landmark shop came at a time when restaurants, grocers and other service businesses are having a hard time finding enough workers to keep the doors open. And there were other unexpected benefits for Klavon’s and its employees and customers.

“A lot of people work two or three jobs, and now they are just working one job, so people are showing up on time now, they’re reporting to work in a better mood; customer service has improved, things like that that you don’t always account for,” co-owner Jacob Hanchar told MSNBC’s Stephanie Ruhle.

Maybe the big news about treating workers fairly should be that it is big news to treat workers fairly. Klavon’s decision to pay decent wages became a national story, picked up by cable news and internet news services, all while the federal government and some states are considering a minimum wage increase.

If we learned anything during this pandemic, it is that we are all linked, that we depend upon each other for the most basic needs of our lives. Early in the crisis, when images of empty grocery shelves made us afraid that we were going to run out of food, that dependence was never more clear.

In time, the supply chain adjusted itself and local merchants regrouped. Grocery shelves were restocked and restaurants made a go of it. And the lowest paid workers, those who earn minimum wage, stocked the shelves and delivered food and essentials to our homes.

We needed them, and they were there for us. Now, they need us. It’s that simple.

Economists tell us increasing the minimum wage is complicated. Some say this would eliminate many low-paying jobs or cause companies to outsource to cheaper labor markets. And they predict prices would rise as companies adjust to protect their profit margins.

But it can cut the other way. Better wages will reduce the need for government assistance. More jobs will be available if those who now work two or three jobs can make it on one. And any increase in wages will go right back into the economy for essentials and not into savings.

There will be time for all those discussions, when the minimum wage allows families to meet their basic needs and live with dignity. Then, we can discuss economic theory all day long. Plus, there may be some surprises.

So far, the bottom line at Klavon’s is not suffering. According to Hanchar, “We have more people coming into our shop as a result of raising our wage because people want to support a business that’s taking care of their employees.”

And even if we all end up paying a little bit more, it’s no big deal if we’re doing the right thing, helping those who help all of us. In the meantime, I’m headed down to the Strip for a little ice cream.