Monday, April 15, 2013
Minimum wage
On the issue of low prices - How do you think any business can provide low prices? It's by keeping costs low. And the biggest cost is labor. No getting around this cost. As wages go up, prices go up. There is no other magic way to have lower prices without having lower costs.
Minimum wage is supposed to be for young, new employees - not for a middle age person to support a family. Minimum wage is paid while young people learn what working is and what work's responsibilities are.
If the economy is roaring and prices are stable, business margins leave room for increase wages. However, anyone who has lived more than 30 years will now that there are always recessions between the good times; most not as bad as the recession we are now in. So increasing wages in good times usually leads to letting go of a few employees in bad times. That is just the facts of the business world.
When the unions press for higher wages during bad economic times, they know that some employees will lose their jobs. The only issue with the unions is: it is all about union dues and not about benefiting the union workers unless the unions can increase the union dues.
An example of unions pushing too far: The Chicago Teachers Union demanded a major wage increase saying it was about the students. _Pure BS but they got their raises. Then the City of Chicago realized they had a negative gap in their budget. So they closed 52 of the worst preforming schools. Schools with 50% attendance. Schools with students failing.
The idea was both to make up the budget deficit caused by the unions extra-ordinary raise and to consolidate students into other schools. The result would be the letting go of 52 time about 25 to 35 teachers, 52 principles and 52 vice-principles, 52 counselors, 104 secretaries and 52 janitors. Over 1700 union jobs were lost and the City of Chicago balanced their budget.
So the unions now demanded that the schools be re-instaed - again saying it was all about the students. Again - PURE BS. Ir was all about union dues. You see, after a strike, unions usually raise union dues. But this time they lost over 1700 union dues payments per month. Even with the tens of thousands of union teacher raises, the unions budget will not grow as planned. This is the main focus on the unions. Their budget and the increase in union dues. And let us not forget about the raises the union bosses get
when they win a union raise.
Unions in many case have now reached the "peter principle". They are fighting a battle that was won 40 years ago. Yet they continue to stir their members about getting raises and getting better benefits.
Let is not forget who pays for these increased salaries and benefits. YOU AND I PAY FOR THESE UNION SALARIES AND PENSIONS AND BENEFITS WITH OUR REAL ESTATE TAXES OR STATE TAXES.
If you are not a union member, what pension do you have? Will it provide you the same high benefits that union members get. My thought is that it is now time to stop these unions from bargaining with
And that's the way I see it...
Straight Talk with Jay Clifford.
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