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Old Today, 08:14 AM
 
5,706 posts, read 2,099,818 times
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Largest recycling center in California closes, lays iff 750, due to min wage

This thread title is a fine example of this
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Old Today, 08:15 AM
 
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If they laid off 750 employees who were earning $12/hr before the minimum wage bump to $15/hr - that is an additional $4,680,000 in salaries that they had to pay ($3 per hour bump) - not to mention other costs required to be paid to the govt. based on salaries. That was probably most of their profit margin right there...
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Old Today, 08:23 AM
 
Location: USA
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Originally Posted by Dbones View Post
They just don't care. If a business doesn't pay homage to their dogma they WANT it to fail. It's their Authoritarian nature.
Yep, the Modern Democrats F-up everything they touch. Before it was Baltimore, DC, Detroit, Chicago. Now it's LA, Seattle, SF, Portland. Former bright spots it their Democrat controlled utopias.
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Old Today, 08:26 AM
 
1,856 posts, read 373,209 times
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Quote:
Originally Posted by Dbones View Post
They just don't care. If a business doesn't pay homage to their dogma they WANT it to fail. It's their Authoritarian nature.
Well, nobody should be surprised that people who specialize in things like feminism and social studies have no idea about basic economics. The vast majority of liberals have never ran a business so they just don't know. Doesn't stop liberal politicians from doing their thing though. Idiots.
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Old Today, 08:27 AM
 
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So countries with stronger labor rights dont recycle because workers there are too demanding and uppity?

Blaming the working class for standing up for themselves is just corporate propaganda.

Clearly other factors are at play, as a business that rely on starvation wages to stay afloat is inefficient and dont deserve to stay in business.
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Old Today, 08:34 AM
 
5,706 posts, read 2,099,818 times
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Quote:
Originally Posted by illtaketwoplease View Post
If they laid off 750 employees who were earning $12/hr before the minimum wage bump to $15/hr - that is an additional $4,680,000 in salaries that they had to pay ($3 per hour bump) - not to mention other costs required to be paid to the govt. based on salaries. That was probably most of their profit margin right there...

The last minimum wage hike in California was on Jan. 1, 2019. It increased from $11/hr to $12/hr, so the payroll hit was not nearly as large as you estimate. The increased wages were a small factor in the closures, not the major one. The biggest issue is the collapse in the recycle market worldwide.
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Old Today, 09:40 AM
 
Location: Out West
22,994 posts, read 17,028,921 times
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Originally Posted by Elliott_CA View Post
The last minimum wage hike in California was on Jan. 1, 2019. It increased from $11/hr to $12/hr, so the payroll hit was not nearly as large as you estimate. The increased wages were a small factor in the closures, not the major one. The biggest issue is the collapse in the recycle market worldwide.
And guess what happened right after that? All of the prices in the grocery stores went up.

As for recycling, I reuse a lot of stuff because I don't want to spend money on buying containers when I have containers that I can wash out and reuse. I do the same with those plastic bags that CA wants to charge everyone for. I did that before they started charging - because uppity liberals have no idea that some people actually reuse things and don't just toss a grocery bag in the trash after bringing their food home.

But now, instead of reusing grocery bags, people will have to buy trash bags, Saran wrap, and other types of plastics to do what the reused grocery bag could do, and will send even more plastic into the landfills and, apparently, out to sea.

Down the block from me, a small recycling center opened. So small, it's operated by one guy with a bunch of those trash cans. He's not at a plant, but he takes the stuff to a plant, and he pays better than those bigger recycling places. I take stuff that I don't reuse (like plastic bottles) there.

One particular farm creates their own flavored milk from the cows they have. (Local farm) They have the regular milk, chocolate milk, strawberry milk, and then a whole bunch of other flavors. Their milk is really good because it's fresh, and because they store it in glass, not plastic. I reuse their glass bottles even though I could get $2.00 for each one by returning them to the store who would then return them to the farm who would then reuse them for more flavored milks to go on the store shelves.

That is recycling. A small local farm can figure that out, but CA itself can't. Because they are idiots.
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Old Today, 09:49 AM
 
52,432 posts, read 42,160,171 times
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Quote:
Originally Posted by Elliott_CA View Post
The last minimum wage hike in California was on Jan. 1, 2019. It increased from $11/hr to $12/hr, so the payroll hit was not nearly as large as you estimate. The increased wages were a small factor in the closures, not the major one. The biggest issue is the collapse in the recycle market worldwide.
First off, thanks for taking the time to post something factual with regards to minimum wage.

The problem there is that most of their operations are going to be around large urban areas that have their own, much higher minimum wages that supercede the much lower state numbers you're showing.

Minimum Wage for Businesses – Consumer & Business

LA County went to 10.50 July-2016, increasing annually by about $1, it just hit $14.25 july-2019 and will got to $15 on july-2020.

The price of Aluminum, while down relative to 2017 is still around a 5 year average so that's not a big driver here.
https://markets.businessinsider.com/...inum-price/usd

So yes, it's reasonable to assume that of the number of items listed by the business, that the requirement to provide healthcare and a minimum wage hike of about 40% in 3 years clearly would have a profound impact on a business like this.

The temporary spike in aluminum prices likely off-set this but now that it's gone back down while wages have continued to climb is no doubt what is causing the closings.

Does CA not have other recyclers? I assume they have state mandated laws about recycling so how is this going to get done? Will the state need to step in and offer subsidization?
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Old Today, 09:51 AM
 
Location: OH->FL->NJ
10,269 posts, read 8,203,509 times
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You all need to stop blaming anything other than minimum wage. STOP WRECKING THE NARRATIVE!

Commies.
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Old Today, 09:55 AM
 
52,432 posts, read 42,160,171 times
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Quote:
Originally Posted by middle-aged mom View Post
Did you intentionally ignore the reference to depressed pricing of recycled aluminum and plastics in favor of jumping on Minimum Wage? It was the combo of increased business costs and falling prices in the recycled aluminum/ plastics.

Looks like California may require grocers to handle recycling or face daily fines.

California is one of ten states that impose a bottle/ can deposit fee. The rate of recycling in these states is multiples of the rates in states that do not provide incentives. Florida is currently considering a bottling tax.
It would be more efficient if the state fees were raised to allow the recyclers to stay in business.

I mean seriously, foisting this off on businesses that aren't really in the recycling biz to that scale and almost certainly do not have the space nor facilities to accommodate it is ridiculous and will just result in higher costs that will absolutely flow downhill to the consumers and taxpayers.
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