3 ms·

Minimum wage is a red herring. If workers want real change how about tying worker pay to some percentage of CEO pay? Example: if your average employee is legall

by hgs3 3y ago

Minimum wage is a red herring. If workers want real change how about tying worker pay to some percentage of CEO pay? Example: if your average employee is legally required to earn, say, 1/10th of what the CEO earns then if the McDonalds CEO makes $9,200 [1] an hour they'll have to pay their average employee $920 an hour. Of course this isn't sustainable so in practice worker pay will drive CEO pay: if the CEO wants to earn more, they'll need to pay their employees more. [1] https://finance.yahoo.com/news/mcdonalds-starbucks-ceos-more-9-110100507.html https://finance.yahoo.com/news/mcdonalds-starbucks-ceos-more...

jncfhnb 3y ago
That’s just punishing businesses that are labor intensive and rewarding companies that can offload as much as possible to contractors
seanmcdirmid 3y ago
I don't think this is sustainable either, especially since most McDonalds are franchises and the "CEO" of their franchise probably only barely clears 6 figures. I'm pretty sure the price changes are guidance to franchisees, and some will have prices that are more or less. There are also some corporate stores to consider (I used to work for a corporate store when I was in HS/first two years of college). And why is this weird? Have you seen McDonalds pricing in Switzerland?
4death4 3y ago
Minimum wage is a red herring. Everything other than unionization is a red herring. Countries with strong labor don't even need a minimum wage. Think about a place you consider to have strong workers rights. You might think of northern European countries like Germany, Denmark, Switzerland, etc. Many are surprised to learn that these countries don't (or didn't until recently) have a minimum wage. In many ways, requiring a minimum wage is a sign that your labor pool doesn't have enough leverage at the bargaining table. Without bargaining power, management is always going to find a way to screw you.
- ETH_start 3y ago
  Countries with strong unions have stagnant wage growth. The spectre of any large worksites becoming unionized keeps significant amounts of manufacturing out of the US too. Increasing bargaining power is a Red Herring to convince the population to restrict people's rights to freely contract, for the benefit of unions. Everyone already has infinite bargaining power in a market economy, which is why the only negotiating leverage a prospective employer has to convince an individual to work for them is to offer them better employment terms. A society where voluntary interaction is not restricted by labor laws sees more rapid economic development, and with it, wage growth, which is why Hong Kong and Singapore massively closed the wage gap between them and the Nordic countries over the last 50 years.
- jakobson14 3y ago
  This. It doesn't matter how much value you generate for The Company. If you don't have strong labour (eg. via unions) then there's absolutely no reason for a company to compensate employees fairly. Companies are not only happy, but DEFAULT to raising prices AND lowering wages. Max profit.
ETH_start 3y ago
That is just a convoluted price floor, i.e. a convoluted minimum wage.

by hgs3 3y ago

jncfhnb 3y ago

That’s just punishing businesses that are labor intensive and rewarding companies that can offload as much as possible to contractors

seanmcdirmid 3y ago

I don't think this is sustainable either, especially since most McDonalds are franchises and the "CEO" of their franchise probably only barely clears 6 figures. I'm pretty sure the price changes are guidance to franchisees, and some will have prices that are more or less. There are also some corporate stores to consider (I used to work for a corporate store when I was in HS/first two years of college). And why is this weird? Have you seen McDonalds pricing in Switzerland?

4death4 3y ago

Minimum wage is a red herring. Everything other than unionization is a red herring. Countries with strong labor don't even need a minimum wage. Think about a place you consider to have strong workers rights. You might think of northern European countries like Germany, Denmark, Switzerland, etc. Many are surprised to learn that these countries don't (or didn't until recently) have a minimum wage. In many ways, requiring a minimum wage is a sign that your labor pool doesn't have enough leverage at the bargaining table. Without bargaining power, management is always going to find a way to screw you.

ETH_start 3y ago
Countries with strong unions have stagnant wage growth. The spectre of any large worksites becoming unionized keeps significant amounts of manufacturing out of the US too. Increasing bargaining power is a Red Herring to convince the population to restrict people's rights to freely contract, for the benefit of unions. Everyone already has infinite bargaining power in a market economy, which is why the only negotiating leverage a prospective employer has to convince an individual to work for them is to offer them better employment terms. A society where voluntary interaction is not restricted by labor laws sees more rapid economic development, and with it, wage growth, which is why Hong Kong and Singapore massively closed the wage gap between them and the Nordic countries over the last 50 years.
jakobson14 3y ago
This. It doesn't matter how much value you generate for The Company. If you don't have strong labour (eg. via unions) then there's absolutely no reason for a company to compensate employees fairly. Companies are not only happy, but DEFAULT to raising prices AND lowering wages. Max profit.

ETH_start 3y ago

That is just a convoluted price floor, i.e. a convoluted minimum wage.