Quote:
Originally Posted by CoolMikey
I agree with you, employees should be paid what their contribution is worth, and piece work is the best way of accomplishing that.
Under minimum wage system, what happens to those that are only able or willing to do 4 items per hour (producing only $8 of value for you)? You should be forced to pay them $10/hr? What incentive does one have to be more productive if they are guaranteed a minimum wage?
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It's very simple, you have a basic quota or rate that has to be achieved. If the employee can't make this rate then you replace them. Using bad employees as excuse for low pay is just a bad management..
The simple fact is companies keep wages low because they can get away with it. McDonalds in Denver start people at $10/hr or very close to it. Why? Because they have to pay those rates or no one will work there because literally every big box store is hiring there, Walmarts, Targets every fast food place have very hard times hiring people because there are better paying jobs.
McDonalds isn't charging more for a hamburger in Denver than they do in FL.. Meanwhile in FL all the McDonalds in my area, pay these people $8.25/hr to start. Granted both are shit pay but do you think the McDonalds in FL can't afford to pay the same $10 dollars they pay in Denver? Of course they could, but they don't have to so they don't..
Walmarts are the same way. The prices in the stores don't change much based on the region the store is in, but the pay does.. Every big box or company with stores all over the country will always pay the bare minimum they have to in that area.
Now here is the kicker on the Walmart side at least.. They pay their supply chain side pretty good. Example out in Denver the hire on pay at their distribution center is $18/hr. Their company Truck Drivers get paid .70 cents a mile which is very high for company drivers, most non owner operators are usually in the .50 cent a mile range.
Why do they pay that high? Because they know those are valuable employees that can go elsewhere at the drop of a hat and have a job.. They have to pay them well so they do and they aren't going bankrupt from payting them well they just get loyal employees..