Wal-Mart raises US hourly wage to $11.00

[NYPat]

$11 is phenomenal for someone with no skills who made poor choices their whole life

I'm sure you'll enjoy the raise.

[superiorlogic]

It is though. In most cases, wages are not a large portion of a business's expense

I'm not suggesting we legislate Walmart into paying more or forcibly raising the minimum wage. I just think there's a better way to do things. I don't understand why people are so hostile against low wage workers and favor supporting underpaying corps like Walmart and McDonalds. You want to punish these people with unlivable wages in one breath and then demonize them as leeches in the next. It makes no sense.

Wrong. Labor costs account for 70% of a business' expenses

https://www.paycor.com/resource-cent...at-labor-costs

[Jesse_l_g]

Have you been to a Walmart? For a good portion of their employees, that's the best they're ever going to do. There's nothing wrong with that. Why is it so unreasonable to expect their employer to pay them a wage that they can get by on?

The alternative is taking money from your pocket to subsidize Walmart's low wage. Would you prefer that? I can assure you the hand to mouth pay from Walmart will be much more efficiently spent than a bureaucratic welfare check

I believe its naive to think central planning is going to work out better for anyone. Like I said in my first post. $11 isn't bad for a lot of places in the country. Unlike liberal cesspool like Seattle or LA that are heavily regulated and taxed by people who think they know it all. I am not a fan of Walmart. Ironically big companies like this benefit from minimum wage laws and more regulation. They wouldn't be so big without it. It raises the barrier of entry into the market and puts their competition who aren't big enough to absorb the costs and weather the storm out of business. Walmart actually has a very small profit margin, IIRC 3%. They just sell a lot of volume. Do you really think they can stay profitable paying people $15 an hour stocking shelves without raising the cost of living for the very people you think you are supporting?

[Jesse_l_g]

I'm not suggesting we legislate Walmart into paying more or forcibly raising the minimum wage. I just think there's a better way to do things

What exactly are you suggesting then?

I don't understand why people are so hostile against low wage workers and favor supporting underpaying corps like Walmart and McDonalds. You want to punish these people with unlivable wages in one breath and then demonize them as leeches in the next. It makes no sense.

It's interesting you feel that way. From the perspective of my world view. You are the one who is hostile to low wage workers. By regulating the market you make it harder for low skilled workers to get jobs and raise their cost of living.

[wesleysh21]

because it is not economically viable to pay that wage for that job.

Step away from a big business like Wal-Mart, let's say it is a small independent gas station. Do you think it is worth it for that gas station to pay someone $15/hr to sit there overnight in case someone wants to pay cash? It's not worth it for them to pay someone $8/hr to do that and that's why we don't see that any longer.

I built a paper bag manufacturing facility. Think about a McDonald's bag. Someone has to turn it into a "bag" and print the stuff on it. That's what this company did. During the design phase we visited one of their other facilities. What we thought was going to be an elaborate "ink transfer" system was anything but. They had people literally take 5 gallon buckets like you can buy at Home Depot, walk over to the 55 gallon drums of ink, and fill up the bucket and walk the colors over to the machine and put the hoses in. WTF? When we asked the owner why, he simply pointed out that the guys hoofing around buckets of ink made $8/hour. There was simply no reason for the capital investment to put in a fancy system and deal with the maintenance costs and maintenance downtime when the labor to do the same thing was so cheap. BUT, if they made more, he'd rethink it. Those people had a job BECAUSE they were so cheap. Otherwise, they'd be replaced.

It is though. In most cases, wages are not a large portion of a business's expense

I'm not suggesting we legislate Walmart into paying more or forcibly raising the minimum wage. I just think there's a better way to do things. I don't understand why people are so hostile against low wage workers and favor supporting underpaying corps like Walmart and McDonalds. You want to punish these people with unlivable wages in one breath and then demonize them as leeches in the next. It makes no sense.

If you want to make more money, do something more valuable. Provide more value to your employer. Its really that simple. Companies are dying for people who are worth a fuk. They are hard to find and/or retain. Do a BS job a 5 year old can do, you get paid like an 5 year old.

[arn710]

Wrong. Labor costs account for 70% of a business' expenses

https://www.paycor.com/resource-cent...at-labor-costs

Dude, read

Labor costs, which can account for as much as 70% of total business costs, include employee wages, benefits and payroll or other related taxes.

Do you really think they can stay profitable paying people $15 an hour stocking shelves without raising the cost of living for the very people you think you are supporting?

Yes I do. See Costco for example

What exactly are you suggesting then?

It's interesting you feel that way. From the perspective of my world view. You are the one who is hostile to low wage workers. By regulating the market you make it harder for low skilled workers to get jobs and raise their cost of living.

I don't have a good suggestion perhaps due to my own ignorance.

I never said regulating the market was the solution.

[Cleveland33]

If you want to make more money, do something more valuable. Provide more value to your employer. Its really that simple. Companies are dying for people who are worth a fuk. They are hard to find and/or retain. Do a BS job a 5 year old can do, you get paid like an 5 year old.

THIS x1,000,000

People act like everyone at McDonalds or Wal-Mart is making the minimum and when you suggest they get a better job they claim they cannot due to lack of skills/education and not having the means to do so.

But they never consider that there are people working there making $15/hr - model employees get raises because they are hard to find and businesses hate to lose them.

[Darkhare]

Labor cost increases usually result in higher prices or staff cuts, but maybe the tax cuts negate the need for that and the publicity doesnt hurt as well.

If the company is doing this on their own then they aren't laying people off...

Are people too dumb to know between forced and willingly volunteered decision?

[Darkhare]

Dude, read





Yes I do. See Costco for example



I don't have a good suggestion perhaps due to my own ignorance.

I never said regulating the market was the solution.

Costco caters to middle class customers who can afford a membership.


This 11 n hour is higher than Canadian min wage which is socialist a higher cost of living and lower valued dollar... let that sink in

[Cleveland33]

Yes I do. See Costco for example

Have you been to Costco? do you not understand the difference in how they stock shelves there? Most of it is done using a forklift and that is a marketable skill, aka deserves a higher wage.

[arn710]

If you want to make more money, do something more valuable. Provide more value to your employer. Its really that simple. Companies are dying for people who are worth a fuk. They are hard to find and/or retain. Do a BS job a 5 year old can do, you get paid like an 5 year old.

You're absolutely right

We need to accept the fact that there are people in this world that will not progress much past a minimum wage job. It could be for a myriad of different reasons.

I'm merely suggesting that a better model would be to put the onus back on the employer to provide them a livable wage instead of pushing them off onto the welfare system

[arn710]

Have you been to Costco? do you not understand the difference in how they stock shelves there? Most of it is done using a forklift and that is a marketable skill, aka deserves a higher wage.

Then pick the janitor, cashier, kitchen worker instead of shelf stockers. You understand what I'm getting at.

Let's not split hairs and have this devolve into pointless mud slinging

[Jesse_l_g]

Yes I do. See Costco for example

I don't have a good suggestion perhaps due to my own ignorance.

I never said regulating the market was the solution.

Not sure where you disagree with anyone here than? I don't think anyone is against Walmart raising their wages. Just that it shouldn't be manipulated by governments. Nobody is saying "fuk poor people". There is just a difference in options in what is actually going to help them.

I'm exited for Costco to come to my town and start shopping their instead of Sams Club.

[wesleysh21]

You're absolutely right

We need to accept the fact that there are people in this world that will not progress much past a minimum wage job. It could be for a myriad of different reasons.

I'm merely suggesting that a better model would be to put the onus back on the employer to provide them a livable wage instead of pushing them off onto the welfare system

There's no way to do that without screwing up the entire system. We've been over this and the domino effect it would have. There will always be poor people, and that's how our system is built. You could raise them to a mandatory salary of $100k and the system will simply reset itself at a higher point, and $100k would become the new poor. The only way out for most people is to provide more value to the employer.

[Cleveland33]

Then pick the janitor, cashier, kitchen worker instead of shelf stockers. You understand what I'm getting at.

Let's not split hairs and have this devolve into pointless mud slinging

The janitor and cashiers are responsible for stocking the shelves. People who work in kitchens are another skilled position.

They cut other costs and employee responsibilities like using boxes and it is the customers' responsibility but they also have fewer employees per store even compared to Sams and BJs.

[Ten_Hearts]

Their net income was 14,293,000,000 (about 3% of revenue) and they employ 1.4 million people in the united states. Under the assumption that everyone works 2080 hours year (FTE) everyone could get a $4.90/hr wage increase, effectively breaking even if everyone got the raise. Of course not every individual works a 2080 hour year and not every employee earns under $15/hr as there are certainly individuals who make a decent living at Walmart either in management, corporate, or other functions. So on a national level they probably can afford it but on a more local level it may make some stores unprofitable that are located in poorer or less populated areas. And the company exists to make a profit so you can't expect them to simply run profit neutral. In the end if you don't like walmart and you have options just don't shop there, pay an additional $.50 and buy local.

[wesleysh21]

I'm exited for Costco to come to my town and start shopping their instead of Sams Club.

I've never been to a Costco until I moved to South Carolina. I heard for years how much better it was than Sam's Club. I immediately got a membership. I'm really not seeing the difference between Costco and Sam's Club. Maybe its the Kirkland brand that sets them apart? I don't know. I just feel foolish for getting a Costco membership when the store is 25 minutes away, when my Sam's Club is like 7 minutes away.

[Procta]

$11 is nearly $15? Since when is approximately 70% of something nearly the same?

[arn710]

I've never been to a Costco until I moved to South Carolina. I heard for years how much better it was than Sam's Club. I immediately got a membership. I'm really not seeing the difference between Costco and Sam's Club. Maybe its the Kirkland brand that sets them apart? I don't know. I just feel foolish for getting a Costco membership when the store is 25 minutes away, when my Sam's Club is like 7 minutes away.

Its not much better unless you take advantage of their sales. Their booze prices are better than anywhere though

Can't forget the hot dogs

[A-GAME]

It wouldn't be the greatest lifestyle, but I could live on that for sure. But then again I'm not a complete fukking ass-hole that spends all my money on drugs, cigarettes and poker machines.

[ichBinBerliner]

$11 is phenomenal for someone with no skills who made poor choices their whole life

Seeing this statement makes me realize just how stagnant wages have been.

I made $11/hr working at Sam's Club back in the 90's when I was in college. Part time in shipping in receiving. All I did was ride a pallet jack and shrink wrap shifted loads.

[BrocepCurls]

It wouldn't be the greatest lifestyle, but I could live on that for sure. But then again I'm not a complete fukking ass-hole that spends all my money on drugs, cigarettes and poker machines.

nope, just back alley rent boys

[djfuzzy]

In on inflation discussion thread.

What portfolio adjustments are y’all planning on for the pending inflation, CPI change, and fed rate changes coming?

What portfolio adjustments, you ask?

The best kind.

Out of curiosity, what kind are you making?

[acrawlingchaos]

It seems that Wal-Mart is closing 63 Sam's Clubs stores, announcing on the same day as the raises. Seems many people were told they're laid off by a letter in the mail or chains around the doors.

http://www.businessinsider.com/walma...-stores-2018-1




Otherwise, the movement to increase the pay is great news.

[gwem32170191]

It seems that Wal-Mart is closing 63 Sam's Clubs stores, announcing on the same day as the raises. Seems many people were told they're laid off by a letter in the mail or chains around the doors.

http://www.businessinsider.com/walma...-stores-2018-1




Otherwise, the movement to increase the pay is great news.

Came to post. Reps for beating me to it.

[PSToolman]

We are already subsizing a large portion of Wal-Marts workforce.



I have seen drastically different Targets depending on where I was. The Super Target I went to in Louisiana was trying to directly compete with the Wal-Mart down the street, so it had damn near everything Wal-Mart had. My Target here in SC doesn't seem interested in competing with Wal-Mart for food, so the food selection is very small.

The truth is that neither really save you much in the long run over what you can find at better stores like Macy's or Nordstrom's. Not when what you buy there doesn't last very long. I bought a bag of socks at Target and they were worn through within about three months. Their stuff may look like the same quality, but it isn't.

[Cleveland33]

It seems that Wal-Mart is closing 63 Sam's Clubs stores, announcing on the same day as the raises. Seems many people were told they're laid off by a letter in the mail or chains around the doors.

http://www.businessinsider.com/walma...-stores-2018-1

Otherwise, the movement to increase the pay is great news.

They've been looming though, they closed stores last year as well and new there would be more.

[PSToolman]

I believe its naive to think central planning is going to work out better for anyone. Like I said in my first post. $11 isn't bad for a lot of places in the country. Unlike liberal cesspool like Seattle or LA that are heavily regulated and taxed by people who think they know it all. I am not a fan of Walmart. Ironically big companies like this benefit from minimum wage laws and more regulation. They wouldn't be so big without it. It raises the barrier of entry into the market and puts their competition who aren't big enough to absorb the costs and weather the storm out of business. Walmart actually has a very small profit margin, IIRC 3%. They just sell a lot of volume. Do you really think they can stay profitable paying people $15 an hour stocking shelves without raising the cost of living for the very people you think you are supporting?

It used to be over 4% but their latest earnings are under 2. This is the very bottom line, however, after everyone except the stockholders have been paid. The individual stores run at a higher margin than that.

According to my calculations from data on MarketWatch, the average store has gross earnings of over $70,000 per day, so yeah, I think they can stay profitable hiring more people and paying them better.

[PSToolman]

I've never been to a Costco until I moved to South Carolina. I heard for years how much better it was than Sam's Club. I immediately got a membership. I'm really not seeing the difference between Costco and Sam's Club. Maybe its the Kirkland brand that sets them apart? I don't know. I just feel foolish for getting a Costco membership when the store is 25 minutes away, when my Sam's Club is like 7 minutes away.

Both suck. I tried a Costco membership once. Got a refund on my second visit. From trying to navigate the parking lot, to getting around the store, to finding what I want, or not finding it because they only had it once, to the pain-in-the-ass checkout lanes, there's nothing that makes saving on a 20 pound sack of protein powder worth it.

[IH8RICE]

Not really. If that person has one set back, out of work for a month, or an injury then theyre fukked and will end up in a shelter or on the street.

Everything I listed is a necessity. They literally have not a cent to their name.

Not sure how this refutes his post. They stock shelves.