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Of course it does.
It will severely decrease the value of the middle class's dollar. Someone who went and got an A.S. degree and has been making $17/hr doing drafting or radiology, or even nursing, just went from making double what fast-food workers made to only $2 more. You don't see a problem with this? The $17/hr workers aren't getting 70% salary increases. COL hikes are typically around 2% yearly.
You can't see the forest for the trees..............The A.S degree people need to see a PAY INCREASE ASLO.........
I'm not 100% certain how he (or Target) operates.
I do know that here, with the chain grocery store Publix, the company is considered "employee owned," and as such, the employees can earn shares of Publix stock.
Not sure about the Target CEO, though.
Most of those guys are given their stock options at basement prices.........The average individual might pay say $50 a share..... the CEO gets to buy at $10...........This way they avoid paying taxes on "income"
Personally I don't think all these workers should expect to be employed. As someone else mentioned employers will be a lot pickier about who they hire when they are paying $15/hr.
It will also motivate owners to invest in technology to automate.
Look at the auto industry . We still have car factories in USA but a lot more of the work is done by robots.
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Amen. When Hostess' Twinkanistas would not agree to a pay scale/benefit package which would allow the corp to survive, the old 18,000 employee (feather bedded headcount) died, and was purchased by a corp which automated heavily. Now an autobake system has them selling even more product with about 1,000 employees.
I met somebody while out of town who's looking for work, but is avoiding FF. She's done it for years, and doesn't want go back. It can't pay the bills. All that talk about "you should go to college to better yourself" is exactly what she did. She just has a degree and is looking for work. If she went back to FF, it would pretty much be defeating the purpose of going back to school. And she told me she did the math... the time spent and money spent going to and from work, plus the time spent working for that sort of pay isn't worth it when she could be spending time with the kids and getting other stuff done.
Quote:
Originally Posted by arjay57
I guess a Big Mac will soon cost $15, if you can get anybody to make one.
Eh... if there was ever a moment to use the phrase "first world problem", it's now. The world doesn't need Big Macs to survive. FF prices have been going up over the years, without any discernible addition to quality. And frankly, many FF joints have been losing a lot of marketshare prior to talks of MW. Just look at the scores of customers who're giving their business to "fast casual" establishments instead. Blaming things on the rise of MW isn't right since the problems were inherent to begin with.
Quote:
Originally Posted by jm1982
Exactly , even a low paying job is better than no job. They will also be able to attract people with more education , skills and experience .
Service does matter.. And not everyone does the same job
An example is IN N OUT burger which is in CA and other states .
They pay above minimum wage but they demand a higher level of quality from their employees . They don't hire everyone . Average employee seems to be a clean cut younger person . I wouldn't be surprised if a lot of the employees are in college currently or have plans to go to college soon .
This actually would be an excellent alternative. In & Out pays their employees well and has good food. McDonald's Big Macs aren't that great. Replace some of those McD's with I&O is a good start.
Exactly , even a low paying job is better than no job. They will also be able to attract people with more education , skills and experience .
Service does matter.. And not everyone does the same job
An example is IN N OUT burger which is in CA and other states .
They pay above minimum wage but they demand a higher level of quality from their employees . They don't hire everyone . Average employee seems to be a clean cut younger person . I wouldn't be surprised if a lot of the employees are in college currently or have plans to go to college soon .
If a low paying job means you can not even afford housing or food and you have to rely on government then they are pretty much the same thing. In N OUt Burger can afford to pay a decent wage and do not have super expensive products so why can't other companie do the same?
Am I the only one who doesn't know anyone with a bachelor's degree working at McDonald's/Wendy's/Burger King after at least one year post-graduation? I keep hearing of this, but am yet to see it. And I highly doubt any of the workers I encounter in these establishments have completed degrees. If they do, they're simply not looking hard enough, as there are plenty higher-paying jobs out there that will hire people with any kind of Bachelor's degree. Many higher-paying call centers (~$15/hour), for example, will be quick to hire virtually anyone with post-secondary education. I know of several companies that operate nationwide that are always hiring.
For $15, maybe they will get the orders right now, but for all the low skilled working loving this decision, they dont realize management can now seek out much better applicants for $15hr vs $7 now.
For $15, you will probably get someone that speaks understandable English, doesnt have tattoos all over, and wont call out all the time and maybe even show up to work on time as well. This will be for the 4-5 workers the store has after the automated machines replace all the cashiers.
They will be pushing a mop and taking out the trash. A staff of 8 will now be downsized to a shift manager and maybe two others to do the cleaning and refilling the machines.
No one from Wendy's contributed to that article, that was written by Tom Worstall a Brit who works for the Adam Smith Foundation, a libertarian think tank. Worstall doesn't think there should be a minimum wage at all. And again, he is in no way associated with Wendy's.
In that article, he claims that in order to remain profitable, Wendy's could only afford to pay $1.62 an hour in higher wages. He arrived at that by multiplying 37,000 (employees) X $1.62 X 2000(hours worked). That is not how you calculate the cost of a wage increase. Wages are about 25% of the cost of goods sold, but about 7% of those labor costs are fixed and don't increase with a wage hike.
Every day on CD I read about how the poor are responsible for their own mess, that their condition is a result of lack of ambition or character. I'm amazed when the same people who make those claims exhibit so much sympathy for failing businesses that they suggest taxpayers subsidize them by not raising the minimum wage. Here's an excellent article about how much low wages are costing us: http://www.nelp.org/content/uploads/...ood-Report.pdf
Am I the only one who doesn't know anyone with a bachelor's degree working at McDonald's/Wendy's/Burger King after at least one year post-graduation? I keep hearing of this, but am yet to see it. And I highly doubt any of the workers I encounter in these establishments have completed degrees. If they do, they're simply not looking hard enough, as there are plenty higher-paying jobs out there that will hire people with any kind of Bachelor's degree. Many higher-paying call centers (~$15/hour), for example, will be quick to hire virtually anyone with post-secondary education. I know of several companies that operate nationwide that are always hiring.
Quote:
Originally Posted by Storm Eagle
If a low paying job means you can not even afford housing or food and you have to rely on government then they are pretty much the same thing. In N OUt Burger can afford to pay a decent wage and do not have super expensive products so why can't other companie do the same?
I don't remember the exact article but I read that one thing that keeps them more profitable than the bigger national chains is that their menu is a lot simpler . That does make sense .
They also have far fewer locations versus the big chains. Although in n out has the opportunity to expand because their brand is so strong they are worried that quality will slip if they expand too far .
Just as a comparison in n out has about 300 locations
And McDonald's has about 36,000 locations worldwide.
Even Taco Bell has 6500 locations .
Although chains are supposed to be consistent Ive found that's not always true.
Fast food places in my area are pretty bad. I don't know if it's the employees fault or the managements fault .
It's common to get food that is barely warm straight from the drive thru window . In n out in the same area is pretty much always consistent .
Fast casual as someone else mentioned is taking market share away too . I know with places like Panera bread now you can order ahead . This seems to be the new trend . If you can order online and have your order ready and just come in and pick it up there is less reason to go to fast food .
I have been using grubhub and eat24 to order food online through different restaraunts.
I see delivery being more popular too . This will further take away from fast food .
Postmates is one company that offers delivery for places that don't have their own delivery .
I saw they were promoting recently that they are delivering from chipotle.
The free flowing venture capital money that is funding these startsups is making this possible .
Many won't survive but in the mean time they will disrupt the existing industry .
Just like uber disrupted the taxi cab industry .
I think that their low quality products .. Especially compared to some of their new fast casual competition ..combined with the $15 wage will cause many of the fast food places in cities with the min wage to shutdown .
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