Minimum Wage

[Gary Phaserman 0]

It's an election year. One of the hot topics during an election year always seems to be the Minimum Wage. Federal Minimum is at present, $5.15 cents for eligable Non-Exempt employees[1] Many states also have their own minimum wage laws, in almost every case it is higher than the Federal Minimum wage (Can't be lower. The Federal Minimum wage is the bottom line, so to speak.) Some exemptions include, but aren't limited to, Waiters, Pizza delivery personnel, and yes, strippers. Now, how many people are actually effected by the Minimum wage? According to the US Department of Labor's Bureau of Labor Statistic, the nationwide percentage of workers 16 YOA or over being paid at or below the Federal Minimum Wage is 2.5% of workers. This does include exempted employeess, examples mentioned above. Most of those workers are single students working in places like McDonalds or Domino's Pizza, and are generally working for extra money (Either persons still living at home, trying to earn their own money and some independance from parents, or those with a second job for extra income.). The interesting thing about one of the big campaign promises (Minimum wage increase) is that the percentage of increase in minimum wage is usually equal to the percentage of increase in the unemployment rate among people who earn minimum wage. One reason for that is most employers paying minimum wage are businesses, like McDonalds and Domino's, who also have to watch their labor percentage. Another is that the majority of businesses paying Minimum wage aren't big corporate monsters like McDonalds and Domino's (The industry leaders in their respective markets.) most are small businesses, owned by the guy next door. And if Domino's can't afford to be paying everyone $7.50, then do you think Pete's Pizza down the street can? Actually, it might be enough to drive him into the ground. Especially if he has a place like Domino's or Pizza Hutt nearby (and even more so if the manager of the big-name is perticularly agressive.)

 

So, that's what a minimum wage increase REALLY looks like.

[Validus 0]

Look-

 

Companies who can't afford to pay their employees what they are worth deserve to go out of buisness...I don't care if its "Pete's Pizza" or Wal-Mart.

 

It's that simple.

[He Who Shall Not Be Named 2]

Look-

 

Companies who can't afford to pay their employees what they are worth deserve to go out of buisness...I don't care if its "Pete's Pizza" or Wal-Mart.

 

It's that simple.

 

How do you define what an employee is worth?

[MrPsychic 1]

What an employee is worth is calculated based on the cost of living and how well they are doing their job. It'll be more in a city like New York or a higher cost of living area, like the San Fernado valley. PA finally voted to raise the minimum wage this year. It had been $5.15 an hour for about 5 years, now it's gonna be $7.30 an hour by mid next year, I believe.

[Validus 0]

I'm not sure what the exact formula would be, but one would hope that an employee is worth a reasonable portion of the profits since a buisness cannot last without employees unless its a one-man operation...and how often is that...??? It seems criminal to me that Wal-Mart is the largest company in the world, but gives its workers nothing compared to what they are making.

[Kor37 9]

I agree that Walmart really underpays its employees. I can't stand Walmart. I make it a point never to shop there.

[youbroughtheryouRiker 2]

Agreed. I never shop Wal-Mart either. I had just entered the work force when it jumped from $4.75 to $5.15 an hour. That was back in.... '97 I believe. It's been almost a decade since it last went up, and the jump that happened (at least here in MI, where it is now $6.95/hour), imo is a catchup to what could have been a gradual increase.

[Theunicornhunter 2]

I agree that most businesses underpay their employees - there seems to the fiction that CEO's do all the work the little guys do nothing but in truth - the CEOs wouldn't have a job if it weren't for the little guys.

 

However, I don't see how WalMart is any worse than any other company as far as paying low wages for non skilled labor. I do shop there - I can't afford to shop anywhere else.