Strikes at McDonald's, Wendy's to pay employees $15 hour.
Replies
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Each state varies, they either have right-to-work or at will and some even have combination of the two, From what I gather, right-to-work only affects unions in that they can't deny anyone employment. So if your job isn't unionized it does no good. Especially when unions destroy a company i.e. Hostess.
Another thing we neglected to consider is how taxes and deductions would affect a pay raise. After federal & state taxes (for those that have them) social security, garnishment, etc etc.. even a $10/hour raise would equate to roughly an extra dollar per hour. While every little bit helps, this means a small raise isn't going to be a huge difference. Now to make these people earn $15 would equate to about $18/hour before taxes. And since most franchises claim to only have a 1% profit margin, even that $10 seems impossible without raising menu prices. Not to mention the massive influx of people with much more qualifications applying for a job. If a restaurant starts paying that much, they're likely to raise hiring standards to people with degrees. It sounds ludicrous, but best believe college graduates will apply for jobs with wages like that.
A great idea is give raises to employees taking classes at accredited colleges, assuming profits allow it.. Start giving really competitive rates for those who show initiative for self improvement. Give it some crazy name like "Competitive Wages for Aspiring Students" then market it. Corporate may even provide funds for this as the positive publicity would likely send share prices up. This would increase revenues as consumers are more likely to buy from franchises helping students. Applicants will stay up so those who don't follow the standards are easily replaced. Night classes, weekends, online, anything so long as they show an initiative for improvement. Government grants and scholarships would cover most if not all semester fees. The average low income student only needs to buy books which are very cheap when used.
Hmm, I should patent this idea.0 -
Wow--that didn't take long. You seem to have an awfully delicate interpretation of the term "debate".
Excessive use of personal stories and the term "I" is often avoided in real debates because it can send a biased message which makes it harder for anyone else to relate. Individuals are ignored when avoiding relevant issues while resorting assumptions about everyone with opposing views. While we can all understand the position of feeling looked down on, not all of us saw it that way (although it may have been interpreted as such and if so, I'm sorry). There is no reason to debate with people who argue against character rather than things that are important to the topic. Especially when not counter-arguing things that are relevant to their position. Personally, I wouldn't call these workers lazy; irrational if they truly think $15 is reasonable. The economy is why they need a raise but it's the reason it can't happen as well; the proverbial rock and a hard place.
It's likely because many of the things mention were too difficult to follow. (FYI, I dislike using personal stories but this maybe relevant). My third degree is catered towards business so a lot of important things mentioned can be difficult to follow. But it does allow me to see things from a business perspective. Economically and business-wise these raises just aren't going to happen without drastic changes. Most of us have been in these low wage positions and can see why they don't earn much. We believed we deserved more money when we were low skilled workers, looking back we see this is incorrect. Many (not all) of those working fast food and the like have never worked up to higher paying positions. It's beyond their comprehension to understand WHY they need more skills to earn more pay. Dunning-Kruger at its finest.
In hindsight, these articles mentioning NYC could be anywhere even in New Jersey as most of the surrounding area is considered its suburbs. Cost of living within the actual city is excessively high for anyone making minimum wage to live downtown. If they're commuting then that is their choice. There are plenty of fast food restaurants around for them to get a job closer to home. Many strikers admitted they're striking because they can always find work elsewhere. But if they can find work elsewhere, why don't they save money and not commute? It makes no sense. Lastly, there is also a policy meeting with the Fed this week. It could start a snowball leading to economic disaster for borrowers. These people NEED to find a better way to manage money and get higher paying jobs. $15/hour might not even cover rent in a few years.
First off, plenty of people here were making assertions about the character of these workers long before I entered the debate. And while I would say that you were not the worst offender, your statements were in no doubt cold and I believe designed be hurtful, as were the others. Once again, I just wonder why your debate etiquette only seemed mentionable after the same treatment was doled out to the aggressors?
As for the $15 an hour, I think it has been reasonably hashed out that no one on these forums, and in all likelihood, even the protesters ever wanted the full 15, if I remember right, you yourself said this was just probably a negotiation tactic, so assuming that people are irrational is probably unwise. As far as Dunning-Kruger go, while it is all very interesting and could very well be true, but I do also think that many of the people here who were so graphic and rude in their judgments of the unskilled worker might want to also look up Narcissistic personality disorder which I think most striking symptoms as pertaining to how this debate was handled are symptoms like, expressing disdain for those you feel are inferior, appearing as tough-minded or unemotional, believing that you're better than others, amongst others.
And since we are already breaking those rules of debate etiquette, I do admit, I only have 1 degree and it wasn't even remotely related to business....however I have been a bus boy, host, waiter, cook, bartender, bar manager, catering manager and once made coffee at Starbucks for a few months.0 -
Each state varies, they either have right-to-work or at will and some even have combination of the two, From what I gather, right-to-work only affects unions in that they can't deny anyone employment. So if your job isn't unionized it does no good. Especially when unions destroy a company i.e. Hostess.
Another thing we neglected to consider is how taxes and deductions would affect a pay raise. After federal & state taxes (for those that have them) social security, garnishment, etc etc.. even a $10/hour raise would equate to roughly an extra dollar per hour. While every little bit helps, this means a small raise isn't going to be a huge difference. Now to make these people earn $15 would equate to about $18/hour before taxes. And since most franchises claim to only have a 1% profit margin, even that $10 seems impossible without raising menu prices. Not to mention the massive influx of people with much more qualifications applying for a job. If a restaurant starts paying that much, they're likely to raise hiring standards to people with degrees. It sounds ludicrous, but best believe college graduates will apply for jobs with wages like that.
A great idea is give raises to employees taking classes at accredited colleges, assuming profits allow it.. Start giving really competitive rates for those who show initiative for self improvement. Give it some crazy name like "Competitive Wages for Aspiring Students" then market it. Corporate may even provide funds for this as the positive publicity would likely send share prices up. This would increase revenues as consumers are more likely to buy from franchises helping students. Applicants will stay up so those who don't follow the standards are easily replaced. Night classes, weekends, online, anything so long as they show an initiative for improvement. Government grants and scholarships would cover most if not all semester fees. The average low income student only needs to buy books which are very cheap when used.
Hmm, I should patent this idea.
The 15 thing is out the window. We all agree.
As far as a $1 raise...as you have already pointed out, most of these McD's are privately owned and do not get corporate money. As said before, low COL areas paying these workers $10 dollars an hour seems excessive, but in large cities where business is more than likely booming, it is probable that the franchise could still be successful, pay the increased wages, and not change the menu prices. I tried looking up what the average amount of employees at a McD's is at any given time, so I think 20 is a reasonable estimation, probably and overestimation. So 20 workers at a 24/7 being given a raise from 7.25 an hour to 10.00 an hour is going to roughly cost the establishment 500,000 dollars, which is a huge chunk of change. But then we have to realize that the average McD's makes close to 2 million in gross profits every year, as to the more successful stores I am assuming are in big cities, I couldn't find their profits. But even if they were 2 million a year profit as well, the choice to raise menu prices because they are now only making 1.5 million dollars a year is completely up to them, but probably not necessary.
As far as the low profit margin argument goes....it doesn't matter. The more you mass produce things, the lower your profit margin becomes if you want to be competitive. This same song in dance is used by the oil industries who claim near poverty because they only make 4% profits...until you realize they still make 26 BILLION dollars a year in profits individually. That is after every pay check is signed. These poor saps.0 -
To the NYC cost of living issue:
http://www.nytimes.com/2013/09/18/nyregion/in-new-york-having-a-job-or-2-doesnt-mean-having-a-home.html?pagewanted=all&_r=00 -
I tried looking up what the average amount of employees at a McD's is at any given time, so I think 20 is a reasonable estimation, probably and overestimation. So 20 workers at a 24/7 being given a raise from 7.25 an hour to 10.00 an hour is going to roughly cost the establishment 500,000 dollars, which is a huge chunk of change.
You have severely underestimated the number of employees needed to operate a McDonald's 24/7. There might be 20 per shift with 3 different shifts. And that is just hourly associates.0 -
That is exactly what he calculated. A $2.75 raise from $7.25 to $10 will cost:
20 people / shift * 3 shifts/day * 8 hours/shift * 365 days/year * $2.75/hour = $481,800/year0 -
I tried looking up what the average amount of employees at a McD's is at any given time, so I think 20 is a reasonable estimation, probably and overestimation. So 20 workers at a 24/7 being given a raise from 7.25 an hour to 10.00 an hour is going to roughly cost the establishment 500,000 dollars, which is a huge chunk of change.
You have severely underestimated the number of employees needed to operate a McDonald's 24/7. There might be 20 per shift with 3 different shifts. And that is just hourly associates.
Yes, see Treetop57^. You don't have to count all the employees, just the ones at work being paid. But also note, and this is important. I might be grossly overestimating the number of employees working at these establishments. I simply don't know. I also used a 24/7 format, which may or may not be true. Then I assumed they were being paid the absolute minimum wage they could be at, which may not be true, and lastly only used the profits of an average McDonald's. I tried to stack the deck against myself to see if this might even be feasible in bad conditions.0