3 ms·
> and using 75 to 80 percent of the company’s anticipated $2.2 million in profit this year. You forgot this part of the source of funds. This will not be a one
by snksnk 12y ago
> and using 75 to 80 percent of the company’s anticipated $2.2 million in profit this year.
You forgot this part of the source of funds. This will not be a one-off reduction in profits. Increasing the wages of the 70 affected employees from an average of USD 48k to USD 70k translates into an annual cash outflow of at least ca. USD 1.5m. This reduction in cash flow will make it more difficult to (re)finance the business.
As said before, this is not viable for businesses with low margins and/or high labor intensity. So you imply that those business owners (i.e., with low margins or high labor intensity) prioritize their own comfort over that of the people they stand on?