Why work has failed us: Because companies aren’t sharing the profits

[hopefullyoneday]

Union! Union! Union!

Unions are fading away and some don't have any power.

 

[Just_Steve]

From my previous post:
What does matter is whether workers think that the CEO's wealth was achieved by stealing it from THEM. This is a critical distinction.

How could the CEO's steal something from them which never belonged to them to start with?

 

[JoeWras]

Well, that depends on the nature of the work. Nurses are a prime example, as is any other occupation that demands "hands on" work. I just read an article about a coming shortage of aircraft technicians, electrical line workers, police officers, and many other jobs that require a physical presence at the location. It's kind of hard to offshore those jobs and the pay scales are beginning to show it. An aircraft technician earns ~$70k a year, not bad for a job that doesn't require a college degree.

Fair point. Knowledge workers (IT, engineers, accountants, etc.) are easy to offshore. Hand's on professions are not. Kids need to know it is OK to pursue these jobs. Over the last 40 years or so, we've done a great job in denigrating such jobs. That was wrong.

Splitting that$40M might only add $1,000 or less to the employees.

It would be $1k more than they otherwise would have had.

My Megacorp decided that their tax repatriation bonus shall all go to the investors, none directly for employees. Some companies chose to give some to the employees (typically around $1k), mine did not and announced it very directly. The c-suite said, "It is important to remember we all benefit from improved stock price." Nope. Not everyone gets stock.

At least they had the guts to announce exactly what they were doing, like it or not.

 

[samclem]

A few times I had to explain to new hires just out of school: You are exchanging your skills, specialized techniques which we will teach you at no cost to you, for a set amount of time at a dollar figure we agreed on, to perform tasks we hired you for.

I think it is also helpful for employees to understand that it is not "their" job. The job belongs to the company. There can be no "they shipped my job overseas" or "the eliminated my job." If it were really "your" job, you could have taken it with you when you quit that employer.

 

[daylatedollarshort]

How poor are you talking about? My DD is a manager at a fast food place making $11/hour and manages to save money (with no assistance from us).

The cheapest rentals here within walking distance distance of the main public transportation stations start at $1,700 a month for a one bedroom apartment. On $11 an hour that leaves $192 a month left over for everything else, including groceries, Social Security and FICA deductions, and any health care premiums and deductions (for jobs with health insurance).

 

[Mdlerth]

Third time's the charm

From my previous post:
What does matter is whether workers think that the CEO's wealth was achieved by stealing it from THEM. This is a critical distinction.

How could the CEO's steal something from them which never belonged to them to start with?

From my previous posts (Bolding added for clarification):
What does matter is whether workers think that the CEO's wealth was achieved by stealing it from THEM.

 

[HI Bill]

The cheapest rentals here within walking distance distance of the main public transportation stations start at $1,700 a month for a one bedroom apartment. On $11 an hour that leaves $192 a month left over for everything else.

At $11 an hour, living in the Bay Area, you need to have a room mate! Or get some training and another job! Or a bicycle, so you can be a little further from the main public tranporation stations. Why should someone making minimum wage in California expect to be able to live independently in the Bay Area of all places?

 

[Just_Steve]

From my previous posts (Bolding added for clarification):
What does matter is whether workers think that the CEO's wealth was achieved by stealing it from THEM.

I guess I have difficulty believing any person of average intelligence could think that.

 

[JoeWras]

At $11 an hour, living in the Bay Area, you need to have a room mate! Or get some training and another job! Or a bicycle, so you can be a little further from the main public tranporation stations. Why should someone making minimum wage in California expect to be able to live independently in the Bay Area of all places?

Yes, the plebes and servants shouldn't be seen. Make them live somewhere else. I guess the COL disparity issue is just as relevant these days as the CEO pay disparity.

 

[Red Badger]

The cheapest rentals here within walking distance distance of the main public transportation stations start at $1,700 a month for a one bedroom apartment. On $11 an hour that leaves $192 a month left over for everything else, including groceries, Social Security and FICA deductions, and any health care premiums and deductions (for jobs with health insurance).

Not much empathy for someone who chooses to live in one of the most gentrified places in the country. My DS and BIL make serious coin in the bay area. She's seven years older than me, and they are both still grinding out (likely to ~ 70).

If someone is only worth $11/hour (to an employer), go where the hell $11/hour is real money, or learn to be worth more than $11.

Life is not complicated, but it can be hard.

 

[hopefullyoneday]

Well, that depends on the nature of the work. Nurses are a prime example, as is any other occupation that demands "hands on" work. I just read an article about a coming shortage of aircraft technicians, electrical line workers, police officers, and many other jobs that require a physical presence at the location. It's kind of hard to offshore those jobs and the pay scales are beginning to show it. An aircraft technician earns ~$70k a year, not bad for a job that doesn't require a college degree

Although being a technician may not require a degree it does require schooling. I was a ASE certified mechanic and I had to show a engineer where a part goes that he designed. And better yet I had engineers bring me a parts to install on a prototype veh and laughed when I told him it was a part for a exhaust system and he made it out of plastic.

 

[Mdlerth]

The Night of the Living Brain-dead

I guess I have difficulty believing any person of average intelligence could think that.

I work at a unionized manufacturing plant. You'd be astonished what people will believe. Barely half contribute to their 401k, despite a dollar-for-dollar match on the first 6%. Why? "I don't want to give Megacorp any of my money."

And just in case you aren't sufficiently appalled, remember this: they are allowed to reproduce, and their vote counts as much as yours.

 

[hopefullyoneday]

How could the CEO's steal something from them which never belonged to them to start with?

In most cases it does belong to them. A good employee with good work ethic works hard and produces a good product to increase profits for the company thinking they will be compensated for their work in making the co. profitable. But then they see no compensation for their hard work but see the upper brass driving new cars.

People use to work hard for their company because it was like family. The co. would take care of them thru raises or bonuses. But the upper brass figured they will pay the employees just enough so they don't quit then keep the profits for themselves. That's why today most people just do the minimum not to get fired and produce sub par products or services.

 

[hopefullyoneday]

I think it is also helpful for employees to understand that it is not "their" job. The job belongs to the company. There can be no "they shipped my job overseas" or "the eliminated my job." If it were really "your" job, you could have taken it with you when you quit that employer.

Funny, because if a employee does not do THEIR job a boss will tell them they are not doing THEIR job.

 

[Chris7]

I see these posts so often. So why don't all of you folks who are unhappy with the system, build a better mousetrap. Build the company that you believe should exist.



Yes, there is greed, but having the Gov't muck around won't fix it. The only way to fix it is to take control of your own business and do what others apparently don't have the fortitude to do.


But guess what, you live in America. The opportunity to do so is there. Be the leader. Show those other companies how it is done.

 

[corn18]

I run a division of megacorp that manufactures high tech electro optics. My troops surprise me on a daily basis. Smart, dedicated, want to grow. And very skilled. I think they are fantastic. They need some care and feeding (and there are always the PITA ones), but mostly they just want to be part of something important and make a fair wage. And they want to be led, not used and abused. Never once has it come up that my total comp is 20x the average line worker's pay.

And don't get me started on the young college kids. I restarted our intern program last year and have had 19 interns roll through the factory since then. One word: Awesome! Our future is in good hands. Every single one of them stepped up and made a real difference while they were with us. We gave them real work to do and in every case, they exceeded our expectations.

 

[hopefullyoneday]

I work at a unionized manufacturing plant. You'd be astonished what people will believe. Barely half contribute to their 401k, despite a dollar-for-dollar match on the first 6%. Why? "I don't want to give Megacorp any of my money."

And just in case you aren't sufficiently appalled, remember this: they are allowed to reproduce, and their vote counts as much as yours.

Some people are not taught to invest. My dad worked for Ford's and had a pension so he never had to invest so he never taught me to invest. When I was young I just made as much as I could and spent it just as quickly. Now that I am older and work for a company that does have a pension I know now to invest for the unexpected.

 

[Just_Steve]

I work at a unionized manufacturing plant. You'd be astonished what people will believe. Barely half contribute to their 401k, despite a dollar-for-dollar match on the first 6%. Why? "I don't want to give Megacorp any of my money."

And just in case you aren't sufficiently appalled, remember this: they are allowed to reproduce, and their vote counts as much as yours.

I spent the first half of my carrier as a blue collar union worker (made a mistake and went into management, thats a story for another day) and among my coworkers I would have to say at least 75% of them had 401K's big enough along with their pensions that the day turned 55 they walked out the door.
Part of our orientation when hired emphasized saving for retirement even though our state agency offered 0% match. It was hammered into us that pension alone was not enough.

 

[Just_Steve]

In most cases it does belong to them. A good employee with good work ethic works hard and produces a good product to increase profits for the company thinking they will be compensated for their work in making the co. profitable. But then they see no compensation for their hard work but see the upper brass driving new cars.

People use to work hard for their company because it was like family. The co. would take care of them thru raises or bonuses. But the upper brass figured they will pay the employees just enough so they don't quit then keep the profits for themselves. That's why today most people just do the minimum not to get fired and produce sub par products or services.

Move up or move on then they can have the new cars.

 

[hopefullyoneday]

Move up or move on then they can have the new cars.

I agree but easier said than done.

 

[hopefullyoneday]

I spent the first half of my carrier as a blue collar union worker (made a mistake and went into management, thats a story for another day) and among my coworkers I would have to say at least 75% of them had 401K's big enough along with their pensions that the day turned 55 they walked out the door.
Part of our orientation when hired emphasized saving for retirement even though our state agency offered 0% match. It was hammered into us that pension alone was not enough.

During our orientation we were given a formula so we could figure out how much of a pension we wanted to retire on and plan accordingly. Then after being vested into the company and over half way thru my career we were told "we decided to change your formula and reduce your pension" so now I have to play catch up.

 

[Just_Steve]

During our orientation we were given a formula so we could figure out how much of a pension we wanted to retire on and plan accordingly. Then after being vested into the company and over half way thru my career we were told "we decided to change your formula and reduce your pension" so now I have to play catch up.

Now thats a kick in the ass for sure.

 

[hopefullyoneday]

Now thats a kick in the ass for sure.

Sure is, and since my pension is thru the city I don't get SS even though I paid into it and have enough credits. So the new truck is sold and a 6 year old car is my daily driver. Modest 2300 sq ft house to be sold in near future to move into my 980 sq ft rental. I am maxing out my 457, HSA, and roth accounts. I HAVE to work overtime every paycheck just so make ends meet until I get house sold. So over $1300 coming out of my check every 2 weeks to play catchup. If they would have kept the promise of my pension formula they said I was going to get before I committed to them I could have over $2600 more a month to enjoy life with. Oh and to top it off they are saying that this is just the first of the pension cuts to come.

 

[daylatedollarshort]

Not much empathy for someone who chooses to live in one of the most gentrified places in the country. My DS and BIL make serious coin in the bay area. She's seven years older than me, and they are both still grinding out (likely to ~ 70).

If someone is only worth $11/hour (to an employer), go where the hell $11/hour is real money, or learn to be worth more than $11.

Life is not complicated, but it can be hard.

For many this is where they grew up and their family and friends are all here. There are 40 million people in California, more than the population of Canada (36 million). All the non-tech workers can't up and move to Iowa. Where would they all work? We were helping a young adult that had issues with her parents and she was homeless for awhile. Life can be really hard working multiple minimum wage jobs to make ends meet. She was renting a room in a house with multiple roommates and life was still hard. She would come by our house and crash on the couch in between jobs.

Many of the homeless here are children, mentally or physically disabled, seniors or vets.

 

[daylatedollarshort]

Yes, the plebes and servants shouldn't be seen. Make them live somewhere else. I guess the COL disparity issue is just as relevant these days as the CEO pay disparity.

Right, the Bay are might be the extreme case, but it is expensive in many urban areas where most of the population and blue collar jobs are. A minimum wage worker needs 2.5 wage jobs to afford a one bedroom apartment in most of the U.S.

The U.N. has a special report on the extreme levels of poverty in America and it is not limited to the Bay Area or even urban areas alone.