Increase in minimum wage reduced inequality - ESRI

Discussion in 'Economic issues' started by Brendan Burgess, 7 Mar 2019.

  1. NoRegretsCoyote

    NoRegretsCoyote Frequent Poster


    The problem with your idea is that your skill level is not a function of your age. It also varies from field to field.

    I have a friend with two master's degrees who ditched in a well-paid office job at 33 to become a chef.

    To get started she had to take minimum wage work as KP and took it from there. No one would have taken her on at whatever high minimum wage you have in mind for someone with 12 years' work experience in an office job.
    Purple likes this.
  2. Folsom

    Folsom Registered User

    @NoRegretsCoyote I would respectfully beg to differ. At 33, assuming a starting point of 18yrs and continuous employment, your friend with two masters degrees would be able to command a minimum wage of €11.44ph - (15yrs in workforce @ €0.24c increase pa) as a chef.
    The problem of course is why would an employer take him on over say, a 18yr for €7.84ph?
    Attitude - I would suggest that a 33yr old in this situation should be able to demonstrate superior attitude?
    Aptitude - two masters degrees?
    Ability - your friend sounds like an intelligent person. Im guessing he has weighed up his ability to be a chef? And can present that ability to any prospective employer?

    As for the 18yr old, who knows?

    Certainly if I was an employer of a restaurant, and presented with the scenario above, for €11.44ph I would be inclined to plump for your friend. I can place value on his experience, skills, attitude, ability far easier than an 18yr old out of school.
  3. RETIRED2017

    RETIRED2017 Frequent Poster

    Last edited: 7 Mar 2019
    I worked for an engineering company which by its very nature needed and hired low skilled people , retention of people in jobs which required low skill long term with as little as possible people turnover, led the company to pay the low skilled worker the same wage as there more skilled brothers and sisters,

    What We found was There more skilled brothers and sisters kind of held a watching brief to ensure they did not fall through the system,which created a great work ethic,
    motivating all co-workers to get the job done, and also made the job place more pleasant and fun place to work in,

    Over time the higher wages low skilled workers found ways to lowering the cost of operations , higher up people would miss,

    I just finishing work for another engineering company which started around two years ago, the had lots of different pay scales in the workplace, what a mess, you had people in low skilled jobs paid Minimum wages with very high turnover, most of it caused by people further up the food chain not having the skill set to do there own job resulting in large turnover of low skilled workers with positive work place attitudes slipping through there system,

    I suspect higher wages Will Mean,less latte coffee for Retired , The byproduct will mean less housing needed for the staff who used to make my latte ,hopefully more money in retires pocket ,when he starts to make his own,no tax required to support and pay state pensions to the low paid people who used to make his latte coffee ,
    Last edited: 7 Mar 2019
  4. Purple

    Purple Frequent Poster

    That's interesting. I work in a manufacturing precision machining company and we don't want low skilled people. We have robots to do that work.
  5. RETIRED2017

    RETIRED2017 Frequent Poster

    Last edited: 8 Mar 2019
    That is very very interesting and I will tell you why, Some time ago you were on hear ,I will let you find your one post and have a look at it your self,

    I think the subject was The amount of tax high earners were paying, You Quoted the % of sales to labour cost and how high Income tax affected this, the one thing that stuck out a mile was how low your sales were to they amount produced,or better again the cost of labour to sales, I would pick up on this kind of thing ,Working in costings involved figuring out what your opposition was up to,if the undercut you and the had high labour / overhead cost you left it to them ,to go broke ,

    many a time I had the displeasure of walking through Robot graveyards, when they were clearing Machinery out after Companies going bust/closing down or moving out of Ireland ,seeing former so called top Employees who spent there time looking down there noses at work/workers the considered considered beneath them,Taking photographs before the machinery gets moved on , telling you how much it cost and it being sold for almost nothing now,when you ask them what the robots were used for if you hear they words used to replace low skill work ,you know in most cases why they are closing,

    I have seen it and there is nothing better to watch , seeing co-workers helping low skilled youngsters who had being left sitting in front of a computer by companies who were well paid to deliver Employability ,

    there real money is made by getting placements for people out of work with skills, leaving the people on low skill to drift along into long term unemployment, pushing up long term unemployment households ,

    The mistake some companies make ,the only have so much money to invest in robots, Part of the mess I posted about above your post was highly paid people in charge of putting in Robots took the safe option and installed them in low skilled work stations with little overheads,

    There overheads to labour was high running at four hundred and fifty % the calculated the ROI on the robots to overheads, roll on end of year overheads went up and wages had not moved,These people were very well paid and thought they were underpaid seeing all the money they were after saving the company ,They thought they could run Ireland and save the taxpayer a packet,

    Anyhow the robots got reconfigerated to the higher skilled workstations for the want of a better word one year later there overheads are down somewhere between three and four hundred % of labour ,new recruits low skilled workers now being paid a higher wage and overheads away down,
    Last edited: 8 Mar 2019
  6. Purple

    Purple Frequent Poster

    Sorry RETIRED2017, but I really don't understand your post.

    All I can say is that we are making double digit net profits in a manufacturing company and have no intention of making anyone redundant as a result of introducing more automation. What we will do is
    increase turnover without increasing headcount. We will be increasing wages though, paid for by training people and improving processes in order to be more productive.

    I don’t want to hire an 18 year old to load a machine when he or she has no real prospect of ever becoming more than a machine loader. The only thing restricting that 18 year old should be their ability and attitude, not crappy structures and dead-end roles within their place of employment.