In order to make a profit off of a product a company must make more than they are spending. So when it comes to spending on wages companies cannot be paying them more than their income. If companies were forced to raise the minimum wage many of them would find themselves laying off workers, especially those of the lower skilled employees. As much as a 3% reduction of low skilled workers can be projected with an increase of 10% in the minimum wage (Negative Effects). An American Apparel store in Los Angeles had to lay off 500 workers because of the recent city increase to $15 an hour (Sherk).
An average family that makes $54,622 a year has around $5076 left over at after taxes and all of the expenses for child care, education, food, housing, etc. (Stoffel, Fool). In addition, the minimum has many problems in the long run when it comes to whether it can sustain a healthy lifestyle. Some May Argue, it causes companies to hire fewer people and fire more individuals to adapt to these change, to still pay the same amount to their employees in the end. That may true, but you forget they will most probably get rid of the slackers and the people who don’t work hard and make space for people who want to work hard but don’t have a chance.
They would also lose 401(k) benefits, but as a result, their income would nearly double, and they would all keep their jobs. On the downside, if salaried employees take the decision personally, kennel workers could experience backlash, creating a very unhealthy work environment. A third group which Rich must address, albeit indirectly, is the clients they serve, and the business’ reputation for excellent customer service. Rich’s decision could easily lower morale and work ethic, or even cause employees to look elsewhere for employment. This will inevitably affect their standard of client care.
Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in
A company that is reporting losses quarter to quarter makes it difficult to instill confidence in the company. Many employees have been laid off and morale must be low. However, Bob Flexon is setting a positive example by playing an active part in the cost saving tactics of the company. He is trying to change the company culture by using symbols, such as the plaque, and encouraging growth. While these changes may or may not be enough to enable the company to turn around, it is a step in the right direction.
Many people against raising the minimum wage argue it would raise the unemployment rate. Many argue companies wouldn’t be able to keep the same amount if workers, and half a million jobs would be lost (Minimum wage). This is not true, the extra money in customers hands would raise the economy enough to cancel out the extra costs, and actually create more jobs. Jobs might initially be lost, but in the long run, they will recover with a vengeance. In the end, when people say raising the minimum wage would lose jobs, it is a temporary loss that will recover within a year or
Green Guard Care is an insurance company that is facing financial problems especially with their margins and profits. They currently have a contract with Arc Electric that pays each employee a fixed amount of $250. The contract can be reviewed and the increasing in physician the reason for decreasing the profits ability of the company. However, Luis Pasture has asked help from his employees to find the solution to their revenue that the company has been receiving. The solutions show the increasing of the copayment of each employee or the decreasement of physician cost.
Henry Ford struggled with having a huge turnover rate of his employees in his factories. This turnover rate was expensive becaue Ford had to train all of the new employees and because of the downtime in production rates when people were not working. Ford came to the conclusion that in the long run it was cheaper to pay his employees more per day in order to gain their loyalty and not have to constantly be paying to trian and hire new employees. Women were not eligible for the $5 a day unless they were single and supporitng a family. Men were not eligible if their wives had jobs outside of the house.
Jobless. These jobs will be replaced by technology or eliminated due to cost. The cons outweigh the pros in increasing the wage. American’s with fifteen dollar an hour paying jobs will soar above the poverty line, but half a million will be left without source of
American citizens face a dearth of well-paying jobs and secure employment in the scientific and technology sector in the twenty-first century. Many American workers accuse H1-B visa as the most significant factor behind the lack of current employment opportunities. However, as is usual with most financial situations, the furor began with the national economy. The growth of a globally-connected economy propelled American businesses to move many domestic operations to foreign countries with lower labor costs (CITE). Unfortunately, the spread of offshoring jobs from low-skill manufacturing to high-wage technology and scientific jobs has reduced the human capital level of the United States (CITE) A combination of political, economic and technological