3 ms·
Something we also take for granted in the tech world is companies running on ridiculously high net margins. Apple, for instance, makes about $400,000 in profit
by TangoTrotFox 8y ago
Something we also take for granted in the tech world is companies running on ridiculously high net margins. Apple, for instance, makes about $400,000 in profit per employee. They could literally give every single one of their 123,000 workers a $200k raise and still be making tens of billions of dollars in profit per year. Now let's consider WalMart, the largest employer in the US and one many have chastised for poor pay. The make a bit less than $4,300 in profit per employee. And that's one of the largest companies in the world that can take advantage of economy of scale to push their profit margins as high as possible.
Most companies operate on very thin margins, made up for by scale. Selling $300 hardware for $1000 is, fortunately, an exception rather than the rule. But what this means is that unions are not going to suddenly send major benefits towards employees, because the companies simply do not have the money for these benefits. Factor in the frequently unreasonably high union fees and unions are often going to be a negative overall outcome at many companies. For instance the united autoworkers union demands 30 hours of pay, or 1.44% (which is 30/2080) of your annual pay in dues per year. So in other words workers would need to see an extra 30 hours of pay or a ~1.5% raise, just to break even.
But many people don't consider economic realities when they believe they can get more stuff. If you had a national vote on enacting a $50/hour minimum wage you'd have tens of millions people vote for it even though it would lead not only to their direct unemployment, but also throwing the entire nation into complete chaos and crashing the US and world economies as well. For instance you regularly see things like employees trying to unionize at companies that are operating in the red. What exactly do they think is going to be the outcome there?
- lovich 8y agoOn the other hand, you constantly see people defend ultra rich CEOs by dividing their salary across all employees in the company and showing how it would only be a raise of a few hundred a year. Those defenders then claim that's barely a raise so why take from the CEO? When you are minimum wage even 100 extra a year would have absolutely helped. I thinks it's fairly disengenous for any company to be raking in billions in profits while employees need public assistance to survive. Yea, you can suddenly double your work forces wage, but you can still improve the situation.
- gnopgnip 8y agoA union can provide value even if it is not tied directly to a raise, or to benefits like 401k matching, employer paid healthcare, or time off. Requiring just cause before firing an employee, having regular shifts that can be planned around, and having someone to look out for your behalf besides the dept of labor all go a long way to improving the working conditions of a job, and don't directly affect the bottom line. The lower turnover can even improve it in the long run.