Fast food workers plan Thursday strike f

[SteveSRT8]

Originally Posted By: ALS
The story that the media hasn't been telling is Seattle is what has been happening across the city is surcharges on bills. These businesses are throwing in a new line on the bill minimum wage surcharge which so far is around a $1. By 2017 or 18 I'll bet that surcharge is going to be $2.50 or more. There was story a few weeks ago that landlords are getting panicky because they're being told by many small businesses that they will not be renewing their leases.

As others have said you get what you pay for, I pay my employees market plus. The best part is I make it well known how I pay when ever I run a want ad. I really want the employees at any of my competitors to feel that they are making dirt wages. My biggest competitor a franchise opened up three years ago about a mile and half away. The location hasn't made money since they opened and the staff is pretty ticked off. They're upset due to not making the money they think they're worth. I understand they are presently upping their pay to what my employees are making, by subsidizing themselves through the cash register.

Basically the owner thinks the place is really slow, no the employees are not ringing the sales into the register. It is a service, labor intense related business with a very low cost of goods so it's pretty hard to pick up on the theft.

I understand the owner who's absentee, is losing about $1000 a week so I know they will be gone when the lease comes up in 22 months. One of owners best friends is a good friend of mine so I hear all the dirt that is going on with the business.

When there was talk of a $10.10 minimum wage I was thrilled to hear it because I know that it would put half of my competitors out of business.

Works like this at $8.00 an hour the market can support 50 pizza shops selling a medium pizza at $14.99. Minimum wage goes to $15 an hour a medium Pizza jumps to $21.99 and now only 20 pizza shops can survive in the area. Reason is the public will only pay so much for a product, Econ 101 supply and demand. By increasing prices you create less demand.

It is a great subject to discuss but there is no political motivation nationally to raise the minimum wage other than lip service during an election year.



Aha. A business OWNER as opposed to an employee who is a business CRITIC!

Remarkable how the perspective changes depending where you sit.

And the sad part is the whole mess COSTS MORE JOBS! So instead of folks working we have more going home to watch TV.

Great outcome...

 

[javacontour]

I am amused that those who are not writing the paychecks think they know best about what to pay a worker.

If you think a worker should make $X/hour, then start your business and pay it.

The problem with this isn't the amount per hour, it's that those external to the issue want to weigh in and tell others what they SHOULD be doing.

From what I understand about economics it will be like everything else. When something changes, some will benefit, others will be hurt.

Some workers would benefit from $15/hr wages. Others who find themselves unemployed will not.

Folks like the one who wrote the "frise" sign above may find that his/her employer is not willing to pay $15/hour for that. Others folks, currently holding out for better jobs at a better wage, may find $15/hour at the burger joint a suitable wage.

If prices do go up 30 some odd percent (I don't totally buy that) then fewer folks will frequent those places.

So a change like this will mean some will win, others will lose and the net result is likely little difference from where we start.

What will raise wages will be the return of other jobs. Manufacturing, services (not food service) building and so on.

Food service jobs for the most part have been the domain of the youth in high school and college earning funds and second jobs for families. (Think wives working as waitress while husband is primary bread winner.)

The real question is not what should minimum wage be. The real question is why are so many trying to get by on minimum wage? What has happened in the economy that has resulted in a glut of labor in the market?

Address those issues and the problem is solved. But our political leaders are too timid or short sighted to address the real issues. It's far easier to attract votes when you set up a strawman blaming the evil franchise owner for the situation that he/she largely did not create.

 

[SHOZ]

McDonald's seems to be able to stay in business in other countries that have the higher minimum wage. The real crime is that a minimum wage needs to be set.

 

[Clubber_Lang]

Originally Posted By: SHOZ
McDonald's seems to be able to stay in business in other countries that have the higher minimum wage. The real crime is that a minimum wage needs to be set.


Really I'm not trying to be abrasive, but are you a troll? Do you have any consideration of how narrow many business owners profit margins are? Businesses have to be profitable in order to survive, that competitiveness is what helps drive economies. Its up to people to be motivated enough to get hired onto a lucrative job. If the Gov could just hand out prosperity we'd all have a free Gov mansion with a free ferrari parked in the driveway. Weve seen what happens when the Gov really does hand everything out, it was called the USSR

 

[SHOZ]

No I am not a troll. Australia has a $15 minimum wage and McDonald's is still in business. Would you like to be able to pay people $2 and hour?

 

[Clubber_Lang]

Originally Posted By: SHOZ
No I am not a troll. Australia has a $15 minimum wage and McDonald's is still in business. Would you like to be able to pay people $2 and hour?



There should be no minimum wage. The only people who would take $2 an hour jobs would be high school kids looking for a first job and seniors just looking for something to do----but many of them would still refuse to work for $2 an hour. My point is that the job market would set itself as most people would naturally gravitate towards the highest paying jobs consistant with their training and exprience. There once was a country that had a wonderfully benevolent policy of paying brain surgeons the same as garbage collectors. But it was no paradise, as the public had to stand in lines hours long to get their issued loaf of bread. That magical land of fairness was called the Soviet Union.

 

[dlundblad]

Isn't the cost of living in Australia outrageous? Plus everything is so overregulated. Terrible example IMO.

Not sure I agree on no minimum wage though.. I suppose employers would set a rate of pay in which they would be able to find workers (and make money). Who knows how that would pan out. I just know I couldn't afford to pay for school with $2 per hr. Lol.

 

[SHOZ]

The employer has to ask themselves how do I get the work done? Just how good of a worker do you expect from $2 and hour with the cost of living as it is now in the USA?

 

[SHOZ]

Originally Posted By: dlundblad
Isn't the cost of living in Australia outrageous? Plus everything is so overregulated. Terrible example IMO.

Not sure I agree on no minimum wage though.. I suppose employers would set a rate of pay in which they would be able to find workers (and make money). Who knows how that would pan out. I just know I couldn't afford to pay for school with $2 per hr. Lol.


None the less McDonald's is still profitable in Australia.

 

[SteveSRT8]

Originally Posted By: SHOZ
The employer has to ask themselves how do I get the work done? Just how good of a worker do you expect from $2 and hour with the cost of living as it is now in the USA?


As an employer I must tell you that the amount offered as pay has little to do with the quality of the worker. Some will work hard no matter what, others won't work at all unless someone is threatening them...

 

[spackard]

Richard Epstein on minimum wage (18 minute audio interview):
http://0055d26.netsolhost.com/libertarian/20130228.mp3

 

[eljefino]

Originally Posted By: Clubber_Lang
Originally Posted By: SHOZ
McDonald's seems to be able to stay in business in other countries that have the higher minimum wage. The real crime is that a minimum wage needs to be set.


Really I'm not trying to be abrasive, but are you a troll? Do you have any consideration of how narrow many business owners profit margins are? Businesses have to be profitable in order to survive, that competitiveness is what helps drive economies.


It wouldn't work it mcd's paid $8/ hr and wendy's next door paid $15. Buyers would balk at paying the extra 25 cents a burger.

But if the floor were the same, and those who frequented said restaurants had more money, it'd all work out.

The anti-min wage argument consistently assumes that the wage move happens in an isolated bubble, and that nothing else has changed.

 

[SHOZ]

Originally Posted By: SteveSRT8
Originally Posted By: SHOZ
The employer has to ask themselves how do I get the work done? Just how good of a worker do you expect from $2 and hour with the cost of living as it is now in the USA?


As an employer I must tell you that the amount offered as pay has little to do with the quality of the worker. Some will work hard no matter what, others won't work at all unless someone is threatening them...


Correct so why keep someone around that you have to threaten? Would you fire them and only keep the 'good' workers? Then slowly lower their pay until they've had enough?

What incentive is there to be a good employee if it is not money, especially at the low end of the scale?

 

[SHOZ]

Originally Posted By: eljefino
Originally Posted By: Clubber_Lang
Originally Posted By: SHOZ
McDonald's seems to be able to stay in business in other countries that have the higher minimum wage. The real crime is that a minimum wage needs to be set.


Really I'm not trying to be abrasive, but are you a troll? Do you have any consideration of how narrow many business owners profit margins are? Businesses have to be profitable in order to survive, that competitiveness is what helps drive economies.


It wouldn't work it mcd's paid $8/ hr and wendy's next door paid $15. Buyers would balk at paying the extra 25 cents a burger.

But if the floor were the same, and those who frequented said restaurants had more money, it'd all work out.

The anti-min wage argument consistently assumes that the wage move happens in an isolated bubble, and that nothing else has changed.


It's like WalMart paying low wages and Costco not. Both make money but one is a dying enterprise (WalMart).

 

[dlundblad]

Originally Posted By: SHOZ
Originally Posted By: dlundblad
Isn't the cost of living in Australia outrageous? Plus everything is so overregulated. Terrible example IMO.

Not sure I agree on no minimum wage though.. I suppose employers would set a rate of pay in which they would be able to find workers (and make money). Who knows how that would pan out. I just know I couldn't afford to pay for school with $2 per hr. Lol.


None the less McDonald's is still profitable in Australia.


And McDonalds is still profitable in the US. If they weren't, they'd either be out of business or they'd make the news like Sears.

Like I said, the cost of living in Australia is much different than here. Gas alone is about 60% higher. Don't they have a universal healthcare system too?

 

[SHOZ]

Originally Posted By: dlundblad
Originally Posted By: SHOZ
Originally Posted By: dlundblad
Isn't the cost of living in Australia outrageous? Plus everything is so overregulated. Terrible example IMO.

Not sure I agree on no minimum wage though.. I suppose employers would set a rate of pay in which they would be able to find workers (and make money). Who knows how that would pan out. I just know I couldn't afford to pay for school with $2 per hr. Lol.


None the less McDonald's is still profitable in Australia.


And McDonalds is still profitable in the US. If they weren't, they'd either be out of business or they'd make the news like Sears.

Like I said, the cost of living in Australia is much different than here. Gas alone is about 60% higher. Don't they have a universal healthcare system too?


Indeed they do have a higher cost of living and universal health care. And they still make money.

 

[dlundblad]

Originally Posted By: SHOZ
Originally Posted By: dlundblad
Originally Posted By: SHOZ
Originally Posted By: dlundblad
Isn't the cost of living in Australia outrageous? Plus everything is so overregulated. Terrible example IMO.

Not sure I agree on no minimum wage though.. I suppose employers would set a rate of pay in which they would be able to find workers (and make money). Who knows how that would pan out. I just know I couldn't afford to pay for school with $2 per hr. Lol.


None the less McDonald's is still profitable in Australia.


And McDonalds is still profitable in the US. If they weren't, they'd either be out of business or they'd make the news like Sears.

Like I said, the cost of living in Australia is much different than here. Gas alone is about 60% higher. Don't they have a universal healthcare system too?


Indeed they do have a higher cost of living and universal health care. And they still make money.


Maybe I misunderstood you. I had the impression your point was that if Australia has a $15 minimum wage, then the US should too. Did I read it wrong?

 

[SHOZ]

Originally Posted By: dlundblad

Maybe I misunderstood you. I had the impression your point was that if Australia has a $15 minimum wage, then the US should too. Did I read it wrong?


No, I think the whole "US business cannot operate with a higher minimum wage" is a phony argument.

 

[rjundi]

Originally Posted By: L_Sludger
Originally Posted By: rjundi
We have a local grocery store chain that pays cashiers (full time) around $40k+profit sharing and the prices are beyond cheap. Don't believe the hype, someone is making some serious money off these workers or poor management is setting money afire.
Margins in the grocery business are razor thin. Something's odd about paying a cashier $20 an hour. Maybe the grocery store is a front for another business?


That is the exact thinking that makes people think that minimum wage is required for fast food workers. The company is not a front but wildly successful $4.5 billion corporation who owns the vast majority of real estate where the stores. I believe a huge cost savings is their own trucking, distribution etc. It proves grocery stores do not run on razor thin margins.....Same is likely true with fast food.

 

[ALS]

Obviously you have zero knowledge of owning a small business. $15 an hour is just the starting point of the expenses. Throw in payroll taxes which are another 9.5% then add in workers comp which could run between 2.5 and 4.0%. Now your looking at the real cost of $20.25 an hour. If you're too big and you have to pay for Obamacare on said employee add in another $2.50 an hour or $22.75 is your actual cost. That employee isn't costing the business $15 an hour they are really costing $20.00 to $22.75 and hour.

So lets take the pizza shop you have three minimum wage employees at $15 and hour how many pizzas do you need to sell in an eight hour shift just to pay the employees and payroll taxes. $15 pizza with a 33% food cost means you're making $10 profit. Lets forget about rent, utilities, insurance, loans and so on, we'll just stick with the employees and their pay. Payroll is $480 for the eight hour shift and you are making a profit of $10 a pizza how many pizzas do you need to sell? 48 pizzas, six pizzas every hour just to pay your three employees. You have to sell a pizza every 10 minutes that you're open just to make your payroll. BTW that doesn't include any other business expenses. At an $8 or $9.25 with payroll taxes pay rate, you only have to sell three pizzas an hour to make the payroll. Minimum wage goes from $7.25 to $15 you can bet a $15 pizza is going up in price to $25. If your sell three pizzas an hour you'll need to make $20 off each pizza to pay the payroll with a $15 minimum wage.

If businesses are so flush with cash why is it that 92,269,000 Americans between 16 and 64 are not working?

Record 92,269,000 Not In Labor Force

Oh and my favorite for everything is great and the economy is growing fantasy crowd.
Keep this one in your favorites and watch it everyday for a few months then you'll understand just how bad it really is out there.

Daily Job Cuts

The 6.1% unemployment rate is a fools number that they feed to the stupid among us. Try the real number is the U6 which is how they measured it back in the 1930's is running closer to 12.1%

Most financial boards that tear into the BLS numbers say it is really closer to 16% to 18%

From a financial blog on Friday when the unemployment numbers came out.

Quote:
Total nonfarm payroll employment increased by 142,000 in August, and the unemployment rate was little changed at 6.1 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services and in health care.

That's a [censored] number.

What's worse is that the unadjusted number from the household survey is negative 618,000 jobs!

You want more bad news? This month 1,343,000 people left the labor force, presumably because they were unable to find work.


55% of the kids that graduated College in 2012 and 2013 are not employed or under employed making less than $25,000 a year.

One of my customers was commenting yesterday she was in Walmart and the cashier was wearing a Duquesne University class ring. She asked her when she was graduating she said she did, last year. Duquesne is a $32K a year school. Four years at a very good University and the best job she could get is a cashier at Walmart, how sad is that?
A buddy on mine on another automotive board, his son is working in a Bagel Shop with a Degree in Mechanical Engineering he got two years ago. His dad said he graduated a 3.5 gpa.

People who can only get part time work or are unemployed where their unemployment benefits ran out, have no money to shop at the local businesses. $300 on an EBT card isn't they same as $2,500 a month in a paycheck.

Lets talk about how those countries that have these high minimum wages and how they are doing.

The latest numbers out of Australia is GDP growth in June 14 is around .5 percent per quarter. Of course that is with their wonderful $16.88 minimum wage.

Ask France how things are going over there with a 12.90€ minimum wage ($16.70 U.S.). The Economy has come to a screeching halt with 10.2% unemployment and climbing. ZERO to negative growth is the way the media is talking over there and it is about to get much worse. The French president Hollande (Socialist Party) has an approval rating in the teens. He just pretty much fired everyone in his Government last week and he is basically reorganizing the deck chairs on the Titanic. The young people I talk to on a French board have pretty much gave up on living in France most of them are talking about getting out and immigrating to England, Canada and the U.S. for a shot at a decent job and future when they graduate from college.