$70,000 minimum wage at this private company...

Sandybestdog · Apr 18, 2015

With even Wal-Mart now deciding to pay $10 an hour (higher than any state minimum wage), I think businesses are starting to realize that higher employee pay is good for business.

I sell cars. Sure somebody making a couple hundred thousand is good for me. They might buy 3 cars instead of the typical family having 2. But imagine if 10 low wage workers go from $8 to $15 an hour. Now they are all buying a cars from me instead of riding the bus. Now I make more money and can save and spend more.

This guys move may just be a publicity stunt. I'm sure although his pay will only be $70k, he still has ownership. His house is probably paid for and he has savings. But maybe his employees give him higher productivity and it's worth it. Perhaps a 90% profit sharing program would be a better experiment to see how well the business does.

i960 · Apr 18, 2015

What's ridiculous in the grand scheme of things is that executives and CEOs won't exactly be heading to the poorhouse if lower level workers are paid adequate wages. Some of that money will go right back into the economy making the economy itself healthier. QE/0% rates, all that stuff is a blatant hack. Pay people more, stop ripping them off, and enrich their lives with actual real value and we'll see our economic issues sort themselves out on their own.

The current massive wage disparity road we're on is heading towards a garden of dying and withering plants. If you want a healthy garden you have to take care of the plants.

In short, to the massively rich folk: stop being so fucking greedy if you want to actually have a revenue stream in 20 years.

loyek590 · Apr 19, 2015

i960 said:
What's ridiculous in the grand scheme of things is that executives and CEOs won't exactly be heading to the poorhouse if lower level workers are paid adequate wages. Some of that money will go right back into the economy making the economy itself healthier. QE/0% rates, all that stuff is a blatant hack. Pay people more, stop ripping them off, and enrich their lives with actual real value and we'll see our economic issues sort themselves out on their own.

The current massive wage disparity road we're on is heading towards a garden of dying and withering plants. If you want a healthy garden you have to take care of the plants.

In short, to the massively rich folk: stop being so fucking greedy if you want to actually have a revenue stream in 20 years.

I have a healthy garden. I can keep it going for 20 years, because I shop around for the best deals on seeds and soil.

2rosy · Sep 7, 2015

Where are they now? His company is crumbling

Gambit · Sep 7, 2015

This CEO is more heart than head. Following Costco's model is better. Also, employees with seniority should have either had their salary bumped up or the increase to new employees should have been smaller. This is a solid idea with terrible execution. However, I think most middle class Americans applaud the attempt.

ktm · Sep 7, 2015

2rosy said:
Where are they now? His company is crumbling

Yep. And instead of his employees making a market wage - like they were before this stunt, they are going to be making zero when the company goes under. But will anyone notice?

loyek590 · Sep 7, 2015

Gambit said:
This CEO is more heart than head. Following Costco's model is better. Also, employees with seniority should have either had their salary bumped up or the increase to new employees should have been smaller. This is a solid idea with terrible execution. However, I think most middle class Americans applaud the attempt.

we are conservatives, we don't get jealous when somebody who was making less suddenly started making more even if we are not making more. Although we do get pissed if we over pay for labor.

Gambit · Sep 7, 2015

loyek590 said:
we are conservatives, we don't get jealous when somebody who was making less suddenly started making more even if we are not making more. Although we do get pissed if we over pay for labor.

Human nature is what it is. HR policies have to consider employee morale. Sparking a senior employee revolt because of a radical change in compensation isn't good business.

loyek590 · Sep 7, 2015

Gambit said:
Human nature is what it is. HR policies have to consider employee morale. Sparking a senior employee revolt because of a radical change in compensation isn't good business.

just don't hire any democrats, If you do, they will spend more time and energy being pissed that somebodly else is making more than they are (especially when they have actually showed up for ten years (which for a democrat seems like it should qualify for a special award)) than they ever spend on making the company (and therefore themselves) money.

Sandybestdog · Sep 8, 2015

I read that his brother, who is part owner, is suing him for basically not considering the interest of the shareholders. Also a woman who was a top salesperson left because other less performing and less tenured people were making the same as her. I applaud the guy for what he did. I honestly think it was not a publicity stunt. I think there could have been a fairer way to do this than to say the new salesperson and the janitor are going to make the same as a senior salesperson. I think the gap between owners/executives and workers is way too large but that doesn't mean everybody should make the same. Perhaps giving away 50% of net profits at the end of the year based on job title, performance, and seniority would be better. That way the the receptionist making $30k can get a $10k bonus and the salesperson making $60k gets a bonus too and both are happy making higher than industry standards.