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Old Aug 1, 2015, 09:26 PM   #1
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clerick
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Default CEO who set firm's minimum wage at $70,000 hits hard times

Quote:
A CEO from Seattle has been forced to rent out his home after his business suffered when he raised the minimum wage to $70,000.
Dan Price, 31, made headlines in the US three months ago when he made the decision to increase the salaries of all 120 staff members at his Gravity Payments credit card processing firm.
However, the move, which included Mr Price taking a pay cut, has not ended well, with two employees resigning and several customers walking away as well as part of a backlash against the payrises.
“I’m working as hard as I ever worked to make it work,” he told the New York Times.
“I’m renting out my house right now to try and make ends meet myself.”
Mr Price lost two of his "most valued" employees when they became angry that lower-skilled workers were being paid a similar salary. Some customers left the company because they thought that raising the minimum wage was a political move that could also end up costing them more.
“There’s no perfect way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs,” Mr Price said.
No surprise that it happened honestly.
http://www.telegraph.co.uk/news/worl...ard-times.html
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Old Aug 1, 2015, 10:03 PM   #2
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All I can say is: ****ing hell, people are retarded. And no, not the business owner.
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Old Aug 1, 2015, 11:06 PM   #3
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2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
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Old Aug 2, 2015, 12:54 AM   #4
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
Yeah, because heaven forbid you get paid based on your merit. I'd be pissed as well if some scrub newbie started making the same amount that I do.
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Old Aug 2, 2015, 09:36 AM   #5
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Yeah, because heaven forbid you get paid based on your merit. I'd be pissed as well if some scrub newbie started making the same amount that I do.
They were already getting paid what they are skilled for, its not like their boss raised salaries across the board and left them out. It's pretty F-ed up for an employee to demand payment based on how much more they are getting paid vs the rest of the workers even more so if they where happy with what they where being paid before hand.

btw the whole internet justice thing was sarcasm.
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Old Aug 2, 2015, 12:58 AM   #6
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
Why should lower skilled, less time on the job and likely lower educated be paid the same? They shouldn't.

Just like the $15 minimum wage bullshit, employees are asking for LESS hours so they don't lose EBT. Instead of working more to make more with the increase, they're going to be working less hours, making the same and keeping bullshit benefits. Yeah, that really worked. It didn't raise them out of poverty, they're just abusing the system even more.
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Old Aug 2, 2015, 01:16 AM   #7
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
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Old Aug 2, 2015, 09:30 AM   #8
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
So you'd be happy for people to receive the same salary as yourself even if those people have not had to go through the education, training or dedication that you have to arrive at your current position?

It would definately annoy me. It would attract the wrong kind of employee, who is very likely to be a liability.
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Old Aug 4, 2015, 03:37 PM   #9
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Originally Posted by CoolNitro View Post
I call for internet justice to slap the crap out of those two
Those two are doing CEO a favor by saving him at least 140K .
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Old Aug 4, 2015, 07:54 PM   #10
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Humanity at its best, now this will be used to "see raising salaries is not a good idea!!" tell that to Ford.

Living in a country where the minimum wage is 500€ and a normal apartment T1 can cost 250€ per month you can really see that people are not really being paid fairly.

And many times then not low wage workers are the ones that work harder (and on heavier jobs) work longer hours and have less benefits, if any. Is the new type of slavery.
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Old Aug 4, 2015, 07:56 PM   #11
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Actually, they are not doing the CEO a favor because now his clients are leaving him because lack of experienced workers. So now, he's renting out his house to try to pay the bills.
It is a simple economic fact, raising the minimum wage too high hurts the people it is purported to help. Example is a hamburger flipper. You were making 10 bucks an hour and the burgers cost 5 bucks. You now are getting 15 bucks and the burger now costs 8 bucks. Self defeating. Oh, and fast food restaurants are not a career. They are a way to earn a few extra bucks to get you on your way to better yourself, and earn a higher paying job.
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Old Aug 4, 2015, 08:02 PM   #12
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Originally Posted by NITE View Post
Actually, they are not doing the CEO a favor because now his clients are leaving him because lack of experienced workers. So now, he's renting out his house to try to pay the bills.
It is a simple economic fact, raising the minimum wage too high hurts the people it is purported to help. Example is a hamburger flipper. You were making 10 bucks an hour and the burgers cost 5 bucks. You now are getting 15 bucks and the burger now costs 8 bucks. Self defeating. Oh, and fast food restaurants are not a career. They are a way to earn a few extra bucks to get you on your way to better yourself, and earn a higher paying job.
His clients left him not due to lack of experienced workers. They were afraid of supporting this company and receiving a backlash from others by doing it. IOW, they were afraid of Political/Social repercussions.
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Old Aug 5, 2015, 12:54 PM   #13
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
Indeed. Given how bad the job market is, you'd think they'd be simply happy enough to have one.
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Old Aug 2, 2015, 01:21 AM   #14
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All I can say is: ****ing hell, people are retarded. And no, not the business owner.
^ Egos and fear, all around.
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Old Aug 2, 2015, 02:17 AM   #15
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Originally Posted by OzzieBloke View Post
All I can say is: ****ing hell, people are retarded. And no, not the business owner.
In a way, he is as well.

If you look at the business and personnel implications of his moves, and what he did, there was an expected downside that seems not to have been taken into consideration.

I applaud him for a brave decision, but there are aspects, internally, that are a little less palatable for some of the harder working employees.

For those who chose to stop doing business, THAT I don't get.
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Old Aug 2, 2015, 02:41 AM   #16
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I can't imagine the accountant's health is too good.
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Old Aug 2, 2015, 03:36 AM   #17
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Originally Posted by Sazar View Post
In a way, he is as well.

If you look at the business and personnel implications of his moves, and what he did, there was an expected downside that seems not to have been taken into consideration.

I applaud him for a brave decision, but there are aspects, internally, that are a little less palatable for some of the harder working employees.

For those who chose to stop doing business, THAT I don't get.
This is the thing though:

You're working in a job. Before the pay-rise of others, you were happy, or at least content with the income you had.

Then you become aware that others are getting as much (or almost as much) as you. Now you're not happy with what you have. All because of what someone else has.

That, to me, is just stupid. If they weren't happy with their current pay before the pay-rise, they should have said something. Who knows, maybe they did and they were knocked back. They could have walked then. But to bitch about it afterwards just smacks of "Wah, Wah, Wah, I feel more superior than THOSE people so I should be getting more!" And sure, maybe their job position is more demanding, or has more responsibility. But it seems ludicrous to me to walk out on a job you already have for the reasons I've already mentioned.
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Old Aug 2, 2015, 06:58 AM   #18
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Originally Posted by OzzieBloke View Post

That, to me, is just stupid. If they weren't happy with their current pay before the pay-rise, they should have said something. Who knows, maybe they did and they were knocked back. They could have walked then. But to bitch about it afterwards just smacks of "Wah, Wah, Wah, I feel more superior than THOSE people so I should be getting more!" And sure, maybe their job position is more demanding, or has more responsibility. But it seems ludicrous to me to walk out on a job you already have for the reasons I've already mentioned.
Sure, but it's just human nature. If someone is getting paid the same as you when you work more hours than them and have more responsibility would you really want to work there?
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Old Aug 2, 2015, 07:41 AM   #19
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Stupid CEO gets his ass handed to him. Wow, news.
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Old Aug 2, 2015, 07:49 AM   #20
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Sure, but it's just human nature. If someone is getting paid the same as you when you work more hours than them and have more responsibility would you really want to work there?
Well, what about the people on a higher level than you that get paid more, but are useless driftwood? I had one supervisor on my last job that did nothing all day. The only time anyone had any actual contact with her was when she needed to discipline someone. We worked harder than she ever did (and this is not just our opinion - she spent most of her days chatting with the supervisor that eventually replaced her when she left after having a baby).

It's about time for the people who do the actual work to have a chance to get some of the money they're helping bring in. It shouldn't be just a privileged few who sit in big offices all day going "Yes, no, let's see a breakdown on that" that get all the perks.
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Old Aug 2, 2015, 10:05 AM   #21
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Originally Posted by OzzieBloke View Post
This is the thing though:

You're working in a job. Before the pay-rise of others, you were happy, or at least content with the income you had.

Then you become aware that others are getting as much (or almost as much) as you. Now you're not happy with what you have. All because of what someone else has.

That, to me, is just stupid. If they weren't happy with their current pay before the pay-rise, they should have said something. Who knows, maybe they did and they were knocked back. They could have walked then. But to bitch about it afterwards just smacks of "Wah, Wah, Wah, I feel more superior than THOSE people so I should be getting more!" And sure, maybe their job position is more demanding, or has more responsibility. But it seems ludicrous to me to walk out on a job you already have for the reasons I've already mentioned.
This is ridiculous. You get paid on the merits of your skills and what you bring to the table. Someone doing CS all day doesn't have the same value as an engineer.

Paying everyone no matter their skill set a 70k salary will kill the moral of the harder working more deserved employees.

I said this would happen when the $15/hr minimum wage discussion came up. If suddenly "may I take your order" is worth $15/hr then that plumber or electrician that was charging $50/hr is now worth $60-70/hr or more.

Why? Because he brings more to the table. He has more value, all people are not equal. To even suggest such a thing is lunacy.
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Old Aug 2, 2015, 10:14 AM   #22
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This is ridiculous. You get paid on the merits of your skills and what you bring to the table. Someone doing CS all day doesn't have the same value as an engineer.

Paying everyone no matter their skill set a 70k salary will kill the moral of the harder working more deserved employees.

I said this would happen when the $15/hr minimum wage discussion came up. If suddenly "may I take your order" is worth $15/hr then that plumber or electrician that was charging $50/hr is now worth $60-70/hr or more.

Why? Because he brings more to the table. He has more value, all people are not equal. To even suggest such a thing is lunacy.
That is not the case though he didn't set everyone at a flat 70k he simply raised the minimum to 70k those already getting paid higher had no changes to their salary. It was a decent idea from the boss but it was undermined by people expecting to be paid a percentage based pay vs other employees.
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Old Aug 2, 2015, 08:56 PM   #23
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Originally Posted by OzzieBloke View Post
This is the thing though:

You're working in a job. Before the pay-rise of others, you were happy, or at least content with the income you had.

Then you become aware that others are getting as much (or almost as much) as you. Now you're not happy with what you have. All because of what someone else has.

That, to me, is just stupid. If they weren't happy with their current pay before the pay-rise, they should have said something. Who knows, maybe they did and they were knocked back. They could have walked then. But to bitch about it afterwards just smacks of "Wah, Wah, Wah, I feel more superior than THOSE people so I should be getting more!" And sure, maybe their job position is more demanding, or has more responsibility. But it seems ludicrous to me to walk out on a job you already have for the reasons I've already mentioned.
Why is that stupid?

If we are working and I assume in my naivete that I am being paid ostensibly for performance, is it then bad when I find out that the average Joe down the hall is making the SAME money for half the work?

In a normal work environment, you are going to have a lot of people who work hard to learn new skills and deliver on key pillars and initiatives, or what have you, in order to EARN that promotion. I would have done exactly what these other employees have who have moved on to something that suits them better.

Keep in mind that the company the CEO runs can continue doing what it is doing and what not. Those employees are not married to this company and they have the right to choose what fits best for them.

We all have finite productive lifespans in various earning capacities. If they are unable to maximise their earning potential while they are in their prime, they are going to be working harder later in life to make up for that, at least to maintain a particular standard of living and so on and so forth.

-edit-

Please note, I agree with your sentiment. But in the world we live in today, this is just how it works in many parts.
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Old Aug 5, 2015, 11:00 AM   #24
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One recurring theme I'm seeing is, "I'm more -qualified- therefore I get paid more."

Okay, yes... to a certain extent, that is appropriate. You've made the effort to expand your skill set, you've got debts accrued as a result of it, you fill a certain position in a company that requires that skill set. Those are all things that do merit extra reward.

But now take into consideration the positions "below" you. They may be less demanding on the technical level, requiring less expertise, less training, less mental ability... but many of those "lower" positions require longer hours, greater physical application whether by strength or stamina, may require the person to deal with situations others don't desire to deal with, or be outright more dangerous in certain situations. That deserves to be compensated for too.

If a person is lazy overall, then sure, penalize them. But if a person is making a consistent, worthwhile contribution, doing the most in their position, then the difference between skill set payment benefits really shouldn't be that great, at least in my humble opinion.
Maybe if companies stopped hiring illegals or the government cracked down on the companies that did these types of jobs may pay more to attract good workers. Its a problem thats rampant in construction, agriculture, and restaurants in the us.
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Old Aug 5, 2015, 11:29 AM   #25
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Maybe if companies stopped hiring illegals or the government cracked down on the companies that did these types of jobs may pay more to attract good workers. Its a problem thats rampant in construction, agriculture, and restaurants in the us.
If there weren't illegals there would be another class of "lower" people taken advantage of. The problem isn't with who is doing the work, it's with how the work is valued. Low skill hard labor will never be valued as much as high skilled low labor work, even though it's much harder to do much of the low skilled work, physically.
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Old Aug 5, 2015, 11:47 AM   #26
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I think that everyone who has more money than they can hold in both their hands should give the rest to me.

But that's just me.
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All I am envisioning right now is the General Lee car with no paint, Cheetos stuffed into the gas tank, and coming out the tail pipe, in a huge pool of Jello :p
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Old Aug 5, 2015, 11:56 AM   #27
Elysian
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I think that everyone who has more money than they can hold in both their hands should give the rest to me.

But that's just me.
Communist
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You guys are closet communists.
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Old Aug 5, 2015, 12:02 PM   #28
General Lee
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Communist
I was quoting Iron Head Haynes, played by Waylon Jennings on an episode of Married...With Children. Great episode, lots of good life advice, give it a watch.

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All I am envisioning right now is the General Lee car with no paint, Cheetos stuffed into the gas tank, and coming out the tail pipe, in a huge pool of Jello :p
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Old Aug 5, 2015, 11:03 AM   #29
BababooeyHTJ
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Yup, they're free to run their company into the ground any way they choose.
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Old Aug 5, 2015, 12:03 PM   #30
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If there weren't illegals there would be another class of "lower" people taken advantage of. The problem isn't with who is doing the work, it's with how the work is valued. Low skill hard labor will never be valued as much as high skilled low labor work, even though it's much harder to do much of the low skilled work, physically.
That's why people used to be able to make a fair living roofing or working at a farm.

I work in enough greenhouses to see enough skilled illegals that if they had the options the rest of us do would be making more money elsewhere. Meanwhile the owners make a killing.

Who's going to break their ass at a farm when they can make similar money at a much easier job? You're either very condescending or ignorant if you think that modern agriculture is an unskilled profession. Yes, like any other trade there are people at the bottom.
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