Company Enacts 70k Minimum Salary; Company Struggles (government, income, New York)

[~HecateWhisperCat~]

Originally Posted by Arabianhorsebreeder

Dan Price, Seattle CEO who set company minimum wage at $70K, now struggles to make ends meet - Washington Times
The Seattle CEO who raised salaries for all of his employees to a minimum of $70,000 a year, drawing accusations of socialism, now says he has fallen on hard times.
Dan Price, the 31-year-old CEO of credit-card processing firm Gravity Payments, told The New York Times that things have gotten so bad for him financially that he’s been forced to rent out his own house to make ends meet.

I remember reading an article about how he was having a brain drain from the decision. Because his long term employees barely got raises and were now making little more than new hires. I imagine within a year when it's evident they are losing money from it there will be a reversal. It's going to cost the business though because a lot of those now making 70k will quit. So he will be back to square one.

[~HecateWhisperCat~]

Originally Posted by greedy

When will these people ever learn?




CEO who set firm's minimum wage at $70,000 hits hard times - Telegraph

I imagine it's going to get even harder in a year when they realize that the new accounts don't cover the lost ones and the higher wages.

[petch751]

There's a potential fix Mr Price. Give the low skilled workers an option to go back to lower pay or get fired and replace them with low skilled workers who will work and get paid according to their skill level. If he doesn't do this how many will end up losing their jobs.

[petch751]

Mr Price lost two of his "most valued" employees when they became angry that lower-skilled workers were being paid a similar salary.

I wonder, if minimum wage increased, are businesses going to raise the income levels for the higher skill workers elsewhere.

[rorqual]

The only way to resolve this is the Republican solution: take away employee paid healthcare and pay them below market wages so that the employees will become dependent on the gov. This will bring back big profits for upper management and things will be awesome again.

[texan2yankee]

I found it hilarious that the two employees who left the company due to the policy change were Millennials.

"Income inequality" seems to be the mantra for Millennials. A CEO tries to reduce income equality by giving everyone in his company a similar salary, regardless of skills or work ethic, and these two "most valued" Millennial employees get pissed off and leave the company.

[rorqual]

As Charles Koch said in his war on corporate welfare speech: "it may hurt in the short run, but it will be good in the long run for everyone."

[petch751]

Originally Posted by rorqual

As Charles Koch said in his war on corporate welfare speech: "it may hurt in the short run, but it will be good in the long run for everyone."

If he's able to stay in business and if he is willing to continue taking all the risk only to have to rent out his own home to make ends meet. Sorry, I wouldn't.

It's funny, I remember when he did this and libby's and dems were praising him, now, well, we'll see what happens.

[TrapperJohn]

Originally Posted by Finn_Jarber

That was one dumb CEO handing out $35.00 per hour to new employees when some more productive people had worked for years to get to that level. This is not am example of minimum wage, it's an example of stupidity.

I think there is a quote of him basically admitting it was stupid.

[urbanlife78]

Originally Posted by TrapperJohn

I think there is a quote of him basically admitting it was stupid.

An actual quote or a pretend quote?