There is a mini-movement afoot across the U.S. pushing for an almost doubling of the federally mandated minimum wage of $8.25/hour for full time employees.
This movement is primarily focused on the fast food industry, namely McDonald's. These low skilled disgruntled workers main gripe is that they can't pay their bills on $8.25 per hour. How can they possibly maintain their 55' luxury yacht payments, pay their beach front condo mortgages in St. Thomas and service the loans on their Maseratis?
These were of course rhetorical questions, easily answered by anyone: they can't. Anyone currently working for minimum wage just doesn't have the skills in the workplace demanded by employers, they flat out don't. They are not able to provide any employer any value beyond flipping a burger, or mopping a floor. These skills are easily obtained with 15 minutes of training, and can be mastered by the most simple minded among the population.
But earning more than a minimum wage requires more than the ability to swing a mop or handle a spatula. Do these morons know that McDonald's turnover in employees per year is around 480%, and that level is acceptable to the McDonald's front office as a cost of doing business? That means that a single station behind the counter that only flips burgers has 4.8 different low skilled workers per year on average handling that single spatula. Or, for those who are really obtuse and feeble minded (typical incumbents of this position, frankly), this means that the average tenure of a burger flipper at McDonalds is something around less than 3 months before they move on to bigger and better things, or are terminated, or die.
Their skills don't earn McDonalds any more than $8.25 per hour, and if they did, they would receive it. Simple supply and demand. If your work exceeds the value of what your employer is paying you, they will recognize such, and reward you accordingly so that you will continue earning them money.
But that's not what these stupid burger flippers and mop swingers think. They think that the franchise owners or McDonalds corporate folk have bags of money just sitting around in hallways doing nothing. And these same stupid burger flippers and mop swingers think that they should be allowed to dip into those bags of money, because that would only be fair. And once they get this arbitrary figure of $15/hour, they will be happy.
This is completely not the case. They will not be happy, and here's why:
A McDonald's franchise and corporate margins are not all that much above 6% of the total cost of operating a restaurant, maybe 8%, tops. That is not a huge margin, and forcing labor rates arbitrarily to $15.00 an hour will likely drag those margins underwater at most locations. No McDonalds can consistently turn a profit at those kind of labor rates given to completely unskilled doofs.
All of this hooplah displayed by unskilled rabble waving signs and chanting stupid slogans will not result in any desirable outcome. If the hooligans are successful in swaying some to jack up the minimum wage at these facilities, then that money has to come from somewhere. And that usually comes at the expense of labor costs: the franchise owners or the corporate office will find a way to operate using less labor: you know, less burger flippers. An automated burger machine costs much less in the long run than a retarded, unmotivated human doing the same job.
In the long run, there will simply be less burger flipping jobs.
This is always they way it goes. Duh. But there is no convincing the dummies out in front of McDonald's waving signs. They want more.
Don't we all? But this is not the way to get more. Getting more requires an employee providing more value to the employer, though hard work, education, improved skills, loyalty and hustle.
This stupidity isn't going to accomplish anything.
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