CEO who set firm's minimum wage at $70,000 hits hard times

[mbeeston]

We're talking about one company here. These employees were not slighted in the least.

Example:

Company A, B, and C - Position 1 makes 35-45k per year. Position 2 makes 75-85k per year.

Company D - Position 1 makes 70k per year. Position 2 makes 75-85k per year.

Why should the people in position 2 at Company D be disgruntled in any way? They are already being paid what they are worth and would be similarly compensated if they quit and moved to another company.

They should be proud of what this company is doing.

Someone said this at another forum:

"There are two kinds of people in this world: People who value their worth by their own merits, and people who value their worth by how many people are beneath them."

If the latter describes you perhaps you should rethink things just a little bit.

completely agree with this.

[SubCog]

The funny thing is it sounds like these employees were already getting paid fair wages for their work, so it's not like if they left to go somewhere else they would get paid more.

The only thing to drive them to leave was bitterness that someone else was now getting paid a decent wage.

It's stupid.

Imagine that we were talking about bonuses instead of salary.

"Hey, this year I'm giving those lower-performing guys a bigger bonus than you because you are already making more money than them."

Yeah, I'd be pissed.

[SubCog]

I can see why lower-performing employees love this idea. As a higher performing employee though, I hate it.

[The Luggage]

We're talking about one company here. These employees were not slighted in the least.

Example:

Company A, B, and C - Position 1 makes 35-45k per year. Position 2 makes 75-85k per year.

Company D - Position 1 makes 70k per year. Position 2 makes 75-85k per year.

Why should the people in position 2 at Company D be disgruntled in any way? They are already being paid what they are worth and would be similarly compensated if they quit and moved to another company.

They should be proud of what this company is doing.

Someone said this at another forum:

"There are two kinds of people in this world: People who value their worth by their own merits, and people who value their worth by how many people are beneath them."

If the latter describes you perhaps you should rethink things just a little bit.

Person A goes to college gets a degree, works at the company for a number of years and is currently making 70k. Person B graduated high school and just got hired as a receptionist at the same company. You're telling me Person A has no right to get angry if the minimum company salary was bumped to 70k? You're essentially telling Person A that they have the same value of Person B. Granted, my example is an extreme case, but you get my point.

[0091/2]

Person A goes to college gets a degree, works at the company for a number of years and is currently making 70k. Person B graduated high school and just got hired as a receptionist at the same company. You're telling me Person A has no right to get angry if the minimum company salary was bumped to 70k? You're essentially telling Person A that they have the same value of Person B. Granted, my example is an extreme case, but you get my point.

Person A should STFU! Person A doesn't love his job and should change it.

[Clockwork]

I can see why lower-performing employees love this idea. As a higher performing employee though, I hate it.

Or you just have an ego.

In the real world compensation quite often has little to do with job performance and/or real responsibilities, only perceived ones.

I have worked my way up through my company the last 11 years and during that time I have encountered entry level employees that absolutely bust their ass while at the same time observing management that was completely useless and just rode on the backs of those below them.

Even using my own career development as an example I willingly admit that it's bullshit. I have a fancy title with salary to match, I work from home, and I am able to largely do as I please with little oversight.

But do I actually work any harder? Not really. I would say the skill set and knowledge necessary to perform my role is greater, but that doesn't mean I am doing more. Am I any more stressed? No. If anything I feel my job is much easier and more laid back than it ever has been.

I certainly don't delude myself into thinking I am better/more important/more deserving than anyone else.

[bacon]

Or you just have an ego.

In the real world compensation quite often has little to do with job performance and/or real responsibilities, only perceived ones.

I have worked my way up through my company the last 11 years and during that time I have encountered entry level employees that absolutely bust their ass while at the same time observing management that was completely useless and just rode on the backs of those below them.

Even using my own career development as an example I willingly admit that it's bullshit. I have a fancy title with salary to match, I work from home, and I am able to largely do as I please with little oversight.

But do I actually work any harder? Not really. I would say the skill set and knowledge necessary to perform my role is greater, but that doesn't mean I am doing more. Am I any more stressed? No. If anything I feel my job is much easier and more laid back than it ever has been.

I certainly don't delude myself into thinking I am better/more important/more deserving than anyone else.

In a higher phase of communist society, after the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor, has vanished; after labor has become not only a means of life but life's prime want; after the productive forces have also increased with the all-around development of the individual, and all the springs of co-operative wealth flow more abundantly—only then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his ability, to each according to his needs!

[Canesfan2020]

Person A goes to college gets a degree, works at the company for a number of years and is currently making 70k. Person B graduated high school and just got hired as a receptionist at the same company. You're telling me Person A has no right to get angry if the minimum company salary was bumped to 70k? You're essentially telling Person A that they have the same value of Person B. Granted, my example is an extreme case, but you get my point.

The notion that just because someone went to college they are automatically better at their job or automatically smarter is hilarious. That might be true somewhere but not here on Earth.

[The Luggage]

The notion that just because someone went to college they are automatically better at their job or automatically smarter is hilarious. That might be true somewhere but not here on Earth.

Do you think an engineer should make the same amount of money as a receptionist?

[CoolNitro]

If this wasn't just one CEO but a law change that raised the minimum wage I doubt the opinions would be the same unless everyone starting thinking their personal value also changes in accordance to a percentage of the minimum.

If your job position is worth 10 apples and the minimum is 1 apple but later changed to 2 apples it doesn't mean your position is now worth 11 apples.

[koralis]

We're talking about one company here. These employees were not slighted in the least.

Example:

Company A, B, and C - Position 1 makes 35-45k per year. Position 2 makes 75-85k per year.

Company D - Position 1 makes 70k per year. Position 2 makes 75-85k per year.

Why should the people in position 2 at Company D be disgruntled in any way? They are already being paid what they are worth and would be similarly compensated if they quit and moved to another company.

Of course, giving so many people raises may make it impossible for person currently making 75k to get to 80k... the company no longer has the funds.

So, those two that quit may have thought that it was basically the end of the line for company advancement... and if you can't advance, should look elsewhere for a job with a future.

If the CEO of this company had given a modest increase to the people currently over the minimum, then the argument may still hold but would have been blunted somewhat.

[Canesfan2020]

Do you think an engineer should make the same amount of money as a receptionist?

Should a receptionist make more than an airline pilot? What does this have to do with my statement?

[SubCog]

The notion that just because someone went to college they are automatically better at their job or automatically smarter is hilarious. That might be true somewhere but not here on Earth.

In general, people who go to college are better than people who don't.

Think of it this way: You're forming a team. You can choose people at random from 2 separate pools: (1)college graduates, and (2)non-college Graduates. Which pool will you randomly select your team from, and why?

[Elysian]

In general, people who go to college are better than people who don't.

Think of it this way: You're forming a team. You can choose people at random from 2 separate pools: (1)college graduates, and (2)non-college Graduates. Which pool will you randomly select your team from, and why?

It can't be random if you're making a choice

[MaxSt]

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 .

[Argoon1981]

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.

[NITE]

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.

[sandorski]

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.

[IamHere]

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.

So the CEO says. We have not heard from the clients that left him.

And bacon nailed it. You guys are closet communists. There is a reason that communism will never work. People are not machines, they will not just follow orders and do what ever the state tells them to. I am really afraid for our future.

[NITE]

Yah, OK
Whatever you want to believe. If that was the case, why is the guy in financial problems now?
It is so funny to see you people in the lower mainland leech off us people in the north, that are the bank account for BC then tell us how economics work.
But, whatever.

[Elysian]

So the CEO says. We have not heard from the clients that left him.

And bacon nailed it. You guys are closet communists. There is a reason that communism will never work. People are not machines, they will not just follow orders and do what ever the state tells them to. I am really afraid for our future.

Gold.

[swingline]

A company can pay their employees whatever they choose and, conversely, employees are free to leave if they think their compensation is unfair.

You clowns are acting like the CEO is picking your pockets to pay some receptionist $70,000.

[Greasy]

A company can pay their employees whatever they choose and, conversely, employees are free to leave if they think their compensation is unfair.

You clowns are acting like the CEO is picking your pockets to pay some receptionist $70,000.

This x 10!

[IamHere]

Gold.

Lead. People that think everyone should be paid the same are communists. What part of that confuses you?

[SubCog]

It can't be random if you're making a choice

You have 2 hats full of little slips of papers with names on them. One hat has college graduates. The other hat has non-college graduates. You can pick which hat to reach into.

You get to select the pool. The selection within each pool is random. Which hat will you reach into?

[Sasquach]

Should a receptionist make more than an airline pilot? What does this have to do with my statement?

Someone spent time to get higher education and learn something that someone else isn't qualified to do.
The non-qualified person doing whatever the job they do end up getting paid the same amount as the person who went to school to learn it.

You think they should be paid equal salaries?

The other side of the coin is that they are completely different jobs and should really have no bearing on how much the other one gets.

To me I would probably be a little jealous about their job getting paid as much as me, but then if I wanted to do their job I would try doing their job instead of what I am doing. I don't care if burger flippers at mcdonalds make more than hourly wage. I don't care if their managers get more than me. I don't want to do that work.

The job to me is more important than the money. I'd rather have a job I like and get paid good, than tolerate a job I hate and get paid great.

Im thinking the CEO raised it too damn high and disrupted everything.

[Sasquach]

You have 2 hats full of little slips of papers with names on them. One hat has college graduates. The other hat has non-college graduates. You can pick which hat to reach into.

You get to select the pool. The selection within each pool is random. Which hat will you reach into?

depends on what the team is working towards.....
and if there is any background to the names in the hat.

What if the goal is to make music?
What if none of the people in the college pool have any musical background/taste/talent while some of the non college grads do?
and what if you just so happened to go straight to the college pool because you felt they were a superior selection because grads?

What if you were starting a automative shop?
The college grad you picked out of the hat has knowledge of mechanical design and engineering of engine parts, but doesn't know jacksquat about changing his oil?
The college dropout/non grad just so happens to fix cars with his uncle or dad or someone in his spare time?

[sandorski]

Yah, OK
Whatever you want to believe. If that was the case, why is the guy in financial problems now?
It is so funny to see you people in the lower mainland leech off us people in the north, that are the bank account for BC then tell us how economics work.
But, whatever.

He's lost Clients. No money In, no money Out.

WTF does my location have to do with anything?

[MaxSt]

Leaving one unfair company isn't too hard.

But I wonder if these 2 are aware how unfair the planet Earth is.

[bacon]

Lead. People that think everyone should be paid the same are communists. What part of that confuses you?

They don't like it when you call it socialism or communism. Its progressive thinking, and compassion for your fellow man.

The fact that he lost two of his most valued people speaks more than I could ever say. Funny how most want to label them selfish.

I bet they will be at or near the top of the food chain at their next job as well.

[OzzieBloke]

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.

[Elysian]

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.

You closet communist

[Jasef]

A CEO setting whatever wages he wishes is now considered communism. Oh well

[Elysian]

A CEO setting whatever wages he wishes is now considered communism. Oh well

And people in a thread about it, who are in no way, shape or form advocating everyone gets paid the same, are communists too.

[IamHere]

A CEO setting whatever wages he wishes is now considered communism. Oh well

He is doing what communist do, and he is getting the same results.

[Elysian]

He is doing what communist do, and he is getting the same results.

He's not paying everyone the same wage, you've made that up.

[IamHere]

He's not paying everyone the same wage, you've made that up.

I did not say they were making exactly the same. You attack and attack to defend his stupidity because you believe in it. Too bad 100 years of history tells us it is a failed idea.

Wow, he is not paying anyone much more than 70,000. That is why the people left. It will keep the sucky people around, but the best will leave to go where they can have a chance at greater pay. When the boss is making 70,000, you can't expect to make much more, now can you?

[Elysian]

I did not say they were making exactly the same. You attack and attack to defend his stupidity because you believe in it. Too bad 100 years of history tells us it is a failed idea.

Wow, he is not paying anyone much more than 70,000. That is why the people left. It will keep the sucky people around, but the best will leave to go where they can have a chance at greater pay. When the boss is making 70,000, you can't expect to make much more, now can you?

You literally called people in this thread communists. I don't think you've got a leg to stand on when it comes to others supposedly attacking.

You don't know the pay structure in his company any more than I do, what we do know is the minimum is 70k, and that not everyone is making 70k. It's his choice what he pays his employees, and whether he takes a pay cut to give them a good living. He's absorbing hard times himself so his employees don't have to. That doesn't make him a communist, it makes altruistic.

Not everyone believes in ruthless capitalism, that doesn't automatically make them communists.

[CoolNitro]

A consistent misconception I'm seeing here is that a few people seam to think that the 2 that left the company where getting equal pay to those who got the minimum raise, that was simply not the case the article stated he raised the minimum wage but made no mention about the wage gap for other employees which we assume where getting paid the amount they deserved which was likely higher then the minimum.

So to those calling some of us closet communist, you are confusing our issues with the story with your own anti communist views which are misplaced in this topic.

[Elysian]

A consistent misconception I'm seeing here is that a few people seam to think that the 2 that left the company where getting equal pay to those who got the minimum raise, that was simply not the case the article stated he raised the minimum wage but made no mention about the wage gap for other employees which we assume where getting paid the amount they deserved which was likely higher then the minimum.

So to those calling some of us closet communist, you are confusing our issues with the story with your own anti communist views which are misplaced in this topic.

It's getting all logical up in here.