Ray From Cleveland
Diamond Member
- Aug 16, 2015
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McDonald's has changed their mind. Now, they are taking the position that they are doing their employees a favor by not increasing their wages, because a wage increase will cause them to use more automation.
...as if they would not automate if the employees didn't demand a raise....
They may not. It depends on what the costs of investing in robots, maintenance, repair are compared to human labor.
Remember that when you increase wages, you are increasing other costs for employers. They have to pay a higher unemployment insurance premium, a higher workman's compensation premium. They have to pay the increase in their matching Social Security and Medicare contributions the employee made. They have to pay for increased costs for vacation and holiday pay if applicable.
It may not sound like a lot, but when you multiply all those costs by dozens of employees, it really adds up. That's not to mention the new burden of Commie Care that they are now forced to deal with.
It's what we call the straw that broke the camels back.