Company Near Seattle Introduces $70K Minimum Wage

[C(-)ris]

Nice that his company is making enough money to afford it, but I would wager that most places couldn't do it and remain profitable.

There are two main things working against this. One is total workforce size. The fewer people you employ the easier it is give everyone a raise. If you take Walmart for example. The CEO makes $35 million a year. There are 2.2 million employees. So every employee would get about an extra $20 in their paycheck per YEAR if they implemented the same policy. Even if you invested every penny Walmart made($16 Billion) and gave it to every worker that would only increase their wages by $750 a year.

The other is profit margins. He is now going to run the risk that someone will under cut him in the market. His cost of doing business is artificially high and it would be very easy for a competitor to swoop in and charge less.

[max]

Speedy wrote:
[quote=Lemon Drop]
That's legit.

I'd also like to add that Dan Price is hot.

Fine, but he only makes slave wages now.
Excellent....

[space-time]

C(-)ris wrote:
...

The other is profit margins. He is now going to run the risk that someone will under cut him in the market. His cost of doing business is artificially high and it would be very easy for a competitor to swoop in and charge less.

from what I understand, his fees will remain the same. if someone wanted to undercut him, they should have done so already.

[Speedy]

C(-)ris wrote: There are 2.2 million employees. Even if you invested every penny Walmart made($16 Billion) and gave it to every worker that would only increase their wages by $750 a year.

Or $7200 per employee. But even $750 would make many Walmart employees smile.

[Racer X]

ztirffritz wrote:
$70k is a princely sum in many areas, including Seattle. I realize that in California that would be poverty level, but not everyplace has the same cost of living.

No, it's not that much in Seattle. Honestly.

[Black]

billb wrote:
[quote=Speedy]
Don't you love it when the lamestream media reprints an Onion satirical article as news!

Care to provide the link to the original Onion article ? http://www.theonion.com

[Lemon Drop]

Racer X wrote:
[quote=ztirffritz]
$70k is a princely sum in many areas, including Seattle. I realize that in California that would be poverty level, but not everyplace has the same cost of living.

No, it's not that much in Seattle. Honestly.
Agree. Median home price is $500K.

[h linamen]

Yeah, right.... I'm sure he's going to live on $70,000 as owner of the company. AND, if half of the employees had their salaries doubled by this move, I would think the rest of the employees would be ticked off. Nothing said about them having their salaries doubled too to compensate for a higher level of responsibility.

[Bill in NC]

He can cut his salary as a PR stunt and still pay himself a hefty 'dividend' at the end of the year - something tells me it will approach the million he was used to getting as a wage.

[M A V I C]

Since when is Ballard "near Seattle"?