Famous for low wages, terrible working conditions, and bringing crappy Chinese junk to every living room in America, Walmart has had a flash of genius. If they want to improve sales they should pay their employees more.
It’s amazing they didn’t see the business correlation between employee satisfaction, employee quality and profit sooner. It still doesn’t address the fact that a business that doesn’t pay a liveable wage shouldn’t be considered successful.
“The management philosophy that became popular in the 1980s that led companies to cut pay for low-wage workers, fight unions and contract out work may have been profitable for the companies that practiced it in the short run,” said Alan Krueger, a Princeton economist and leading scholar of labor markets. “But in the long run it has raised inequality, reduced aggregate consumption and hurt overall business profitability.”
To fix it, executives came up with what, for Walmart, counted as a revolutionary idea. This is, after all, a company famous for squeezing pennies so successfully that labor groups accuse it of depressing wages across the American economy. As an efficient, multinational selling machine, the company had a reputation for treating employee pay as a cost to be minimized.
But in early 2015, Walmart announced it would actually pay its workers more.
That set in motion the biggest test imaginable of a basic argument that has consumed ivory-tower economists, union-hall organizers and corporate executives for years on end: What if paying workers more, training them better and offering better opportunities for advancement can actually make a company more profitable, rather than less?
How Did Walmart Get Cleaner Stores and Higher Sales? It Paid Its People More http://nyti.ms/2e5IgCj
What the lawsuit doesn’t address is that companies like Mickey D’s profit wildly from the labor of employees who don’t receive a fare share. Their wages barely allow them to get by.
If you work 8 hours a day 5 days a week your pay should at least be sufficient to live on. Minimum wage currently is not. These workers deserve a greater share for their efforts.
The lawsuit goes on to show that it’s even worse than that. The franchisees and parent corp willfully cheat and underpay the already underpaid.
The alleged violations included unpaid overtime, misrecording of timecards to reduce pay, failure to pay the minimum wage and failure to pay wages owed to employees who quit or were fired. In documenting the alleged violations, the lawsuit goes back to 2010 and asserts that most of the practices continue today.
A Step Forward for Fair Pay at McDonald’s http://nyti.ms/2a2SVwK
North Carolina tacked a provision onto their recent anti LGBT bill to limit the minimum wage. How can they possibly think that keeping wages at $7.25 / hr will help their state?
The provision is best understood as a bully’s show of force. State legislators fear the growing demand and support for higher wages among low-wage workers and so they have responded with a gratuitous display of the state’s power and intention to keep pay depressed.
Poverty has many causes — and one of them is poverty-level wages.
one of the objections to gradually raising the federal minimum $15 an hour is that doing so would be too difficult a lift in the South. Politically, the objection is flawed. It argues, that policymakers should follow the laggards, not the leaders
The South Fails Again at Fair Pay http://nyti.ms/22LcCdT
Plenty of examples of the benefits of increasing minimum wages. The author refers to several real world instances of the success of local laws increasing wages.
NYTimes: Local Policies That Work for Workers