Log In


Reset Password
News Education Local News Nation & World New Mexico

Would higher wages or reduced costs of living help Durango workers more?

Pandemic has eased and stimulus payments ended: So why hasn’t our labor force recovered?
Regan Briggs, lower right, executive chef at The Ore House, and her team from left, Berman Abdallah-Boehm, Zo Jones, Bobbi Cooley and Sam Krajnak prep food last week before the restaurant opens. (Jerry McBride/Durango Herald)

Pandemics of the past have demonstrated the power to change the course of human history. Some workers in Durango say COVID-19 has upset the status quo when it comes to work.

The Black Plague contributed to the end of feudalism in the 14th century by killing huge swathes of medieval Europe’s workforce. The labor shortages gave surviving serfs leverage over the nobles for better treatment, according to the BBC.

Sound familiar?

Employment in the United States fell by 9.4 million workers in the first year of the COVID-19 pandemic, according to the U.S. Bureau of Labor Statistics. But even with the introduction of vaccines and dropped restrictions concerning the virus, some Durango businesses are still struggling to recruit workers, according to the Durango Chamber of Commerce and service industry and business professionals.

Like the Black Plague centuries ago, COVID-19 may have expedited a culture shift among workers that is observable here in Durango.

Denise Mickelsen, spokesperson for the Colorado Restaurant Association, said the restaurant industry was suffering a labor shortage even before COVID-19 spread around the globe.

After the pandemic hit, 94,000 Colorado restaurant workers were laid off or furloughed in 2020, Mickelsen said in an email Wednesday.

“Labor continues to be a severe pain point for the industry,” she said.

The state’s restaurant industry is 8,000 workers short compared with pre-pandemic levels in 2020, and eight out of 10 restaurants have told the Colorado Restaurant Association they can’t hire enough staff members, Mickelsen said.

So what is driving the continued labor shortage?

Jack Llewellyn, with the Durango Chamber of Commerce, said the cause is hard to pinpoint.

“There are some individuals that just are not wanting to return to the workforce,” he said. “Pay could be part of it, or they have younger kids and they’ve decided it’s just better to stay home instead of working.”

He said with the end of relief funding, one would think more people would be returning to work.

But in the service industry – one of the industries hardest hit by the pandemic – restaurants are still struggling to find employees, said Blaine Bailey, executive director of In the Weeds, a nonprofit resource for workers in the Durango restaurant industry.

Regan Briggs, executive chef at The Ore House, draws up the evening’s specials before the restaurant opens. (Jerry McBride/Durango Herald)
A ‘culture shift’ in the industry

Regan Briggs, executive chef at The Ore House, said the “Great Resignation” occurred after the pandemic presented an opportunity for people to take a step back and reassess their lives.

The pandemic stirred up a lot of fear and uncertainty in people, she said. She thinks people who left their jobs and never looked back were unhappy with their current work situation.

She said many people had wanted to “get out” of their current work environment, and COVID-19 had a “great” impact.

“It shined a light in a good and a bad way on ownership, management,” she said. “I love this place (The Ore House) because I know we’re shifting – we’re creating that culture shift. And I say that with confidence and love and so much respect for my staff.”

Briggs said people who left work and haven’t returned might not have felt they were being paid enough or treated well enough, but whatever it was, the root of it may be that they weren’t feeling valued.

She said making employees feel valued is something The Ore House has worked on for a long time.

“This is our family,” Briggs said. “We choose to be here more than we’re at home. More than I can see my partner, I’m with my team here. And why would I want to create something that is negative?”

Roberto Casanueva, special ops project manager at Outdoorsy, said the pandemic gave workers a chance to breathe and re-examine their lives.

“I think that’s the elephant that actually no one is talking about, that people are reassessing their lives and not choosing to just go back into the kitchen or sales or (returning to work as) a server or bartender,” he said.

Outdoorsy is a global tech company with operations in 14 countries, Casanueva said. He is currently seeking a lead experience manager, also known as a brand manager.

Regan Briggs, executive chef at The Ore House, and Bobbi Cooley prep food last week before the restaurant opens. (Jerry McBride/Durango Herald)

He said he is offering $20 an hour, which he considers a good wage. And he’s offering an entry-level position where someone can start their career with a large and growing company. Still, he is surprised that he hasn’t seen more interest in the position.

“I have people saying now, ‘If it’s not a high enough wage, I can’t even apply,’” he said.

Casanueva said the power dynamic between employers and employees has flipped because of the demand for workers – now the power is in the workers’ hands.

Durango is an expensive place to call home, Briggs said, and if someone’s job isn’t paying well, why would they stick with it?

Briggs has worked in toxic environments before. Over seven years, she worked at various restaurants in Los Angeles, including some “larger names,” she said. She dealt with low salaries and 80-hour work weeks in addition to hazing by co-workers. She remembers doing whatever necessary to get by and to avoid getting yelled at. She learned who she doesn’t want to be as a leader.

“I feel like they operate out of fear and ego,” she said. “If you mess up on the front line, they would purposely put down a metal spatula on the burner and then burn your arm. That’s simple, that’s first-week hazing.”

Although he works in the tech industry now, Casanueva said he spent six years in the service industry. He described service jobs as “grueling” and said people in the industry rarely have the wherewithal to stop and think about their position in life. COVID-19 gave them that time to think, he said.

Briggs said restaurant workers are resilient. When talk about “pivoting” out of the pandemic started, she remembers thinking, “We’ve been pivoting for decades.” The pandemic simply made restaurants think smarter and work harder.

But employees have needs, too. At The Ore House, Briggs said, the steakhouse is clear that it wants to support its workers, be it with finances, time restraints or simply a safe place.

“We make all of that clear,” she said. “This is what we can do for you. This is what we want to do for you. This is what we need from you, as well.”

What’s the fix?

Bailey said lots of restaurants are shifting to new pay models in order to compensate their staff members and shorten the gap between front- and back-of-house employees.

One method more restaurants are using are shared tip pools, including for kitchen staff members, he said.

But raising wages is still tough for most restaurants, particularly for front-of-house workers such as wait staff and hosts and especially during the slow season.

“You’re making $9.30 an hour plus tips or whatever,” Bailey said. “On a slow day that’s not much. You’re just going to make minimum wage because the restaurant will have to pay that difference up to a minimum wage. So it’s harder in the slow season.”

As for solutions, Bailey said the expensive cost of housing should be addressed before minimum wages.

He said many workers are in an awkward position where they can’t quite afford rent but they don’t qualify for government assistance either. In the Weeds is trying to score security deposit assistance for working renters.

The idea is to provide a revolving rental assistance loan with a zero to 1% interest rate that can help people who are eligible based on their income, he said.

Durango Mayor Kim Baxter shared similar thoughts about the need to drive down the cost of housing. She prefers taking that approach versus creating city wage regulations for restaurants and other industries.

“From my perspective, it (a minimum-wage increase) doesn’t really help the affordability of a community,” she said.

She said the prices of homes and rentals need to be brought down to an affordable level.

The city of Durango has explored the concept of a “living wage” in the past, but ultimately no actions were taken, said Tom Sluis, community engagement director for the city.

Even though raising wages can be difficult, restaurants across Colorado have done so, according to the Colorado Restaurant Association.

Mickelsen said restaurant wages in Colorado are up by 19% on average compared with pre-pandemic levels. Over one-third of them have increased wages by 21% to 30%.

“Moreover, more than 23% of operators have added benefits and other forms of compensation to attract and retain workers, including medical and dental insurance, 401(k) plans, health and wellness programming and educational assistance,” she said.

cburney@durangoherald.com



Reader Comments