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Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

There are a lot of people who choose to support business that treat employees fairly and refuse to shop at or limit shopping at places that don't treat employees well. Furthermore there are people who are fine paying a little more for better service. And on the whole companies who treat employees better have happier employees. And generally happier employees provide better service. People also tend to prefer businesses who's employees are knowledgeable. Lower employee turnover over time will lead to more knowledgeable employees. So there are benefits. Overall people will buy what is cheapest and don't care who gets trampled in the process because most Americans are greedy and selfish. So Walmart and the like will still have their core consumer base and will continue on screwing the world for their own pockets, but there is a significant number of Americans who value companies for their business practices and not just price.

Capitalism at work.
 
The important change is that it's attracting more competent job seekers. I fully support a higher minimum wage and this is a good story. But you must understand, those people whose only skill is flipping burgers (metaphorically speaking) aren't going to be hired. IKEA has just raised the bar.

I think the important question here is whether the quality of employee that Ikea is attract would still qualify them as under-employed by the BLS. If so then the increase in quality of applicants is more a symptom of a systemic job market problem than it is something to celebrate.

Also, either way, this doesn't really change the argument about the point of a low minimum wage. Ikea is raising their minimum wage which allows them to attract skilled employees... which squeezes out the unskilled employees that the minimum wage was intended for.
 
I think the important question here is whether the quality of employee that Ikea is attract would still qualify them as under-employed by the BLS. If so then the increase in quality of applicants is more a symptom of a systemic job market problem than it is something to celebrate.

Also, either way, this doesn't really change the argument about the point of a low minimum wage. Ikea is raising their minimum wage which allows them to attract skilled employees... which squeezes out the unskilled employees that the minimum wage was intended for.

Your last paragraph -- I see you get it, too.
 
Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again



So there goes the conservative assertion, “better your skills if you don’t want minimum wages”.

I told you guys that the wave was coming.


Happier and more responsible employees with better wages; who'd a thunk ti?

So a business that caters to middle class America can afford to raise it's prices without creating a problem for it's bottom line or it's customer base's ability to afford to live. big deal...
Do the same thing to a business that caters to people on a fixed income and the story changes substantially. Suddenly grandma Jones can no longer afford to buy groceries and now gets to have the fun of skipping a meal or two each week. Suddenly, the business can no longer stay profitable, since it's customer base just dropped and gets to go through the "fun, fun, fun" of bankruptcy.
 
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Happier and more responsible employees with better wages; who'd a thunk ti?

Who wouldn't be happier with higher wages. Nobody ever said other wise. the second part is most assuredly not universally true.

As a poster already pointed out.
A company making a an economic decision is a far cry from Government FORCING companies to pay people more for nothing.
 
Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again



So there goes the conservative assertion, “better your skills if you don’t want minimum wages”.

I told you guys that the wave was coming.


Happier and more responsible employees with better wages; who'd a thunk ti?

No one was ever objecting to employers voluntarily raising wages. This however has nothing whatsoever to do with the Minimum Wage.
 
There are a lot of people who choose to support business that treat employees fairly and refuse to shop at or limit shopping at places that don't treat employees well. F price.

There are also plenty of people who can't afford that luxury. you know, the low income folks liberals pretend to care about.
 
There is a big difference between one employer raising the wages, vs a law requiring all employers raise wages.
For the Ikea employees, the raise move them ahead of the curve, so the extra money retains the value.
 
There is a big difference between one employer raising the wages, vs a law requiring all employers raise wages.
For the Ikea employees, the raise move them ahead of the curve, so the extra money retains the value.

And, as they have stated, it attracts a more qualified, dedicated workforce. Just as wages have always done.
 
There are also plenty of people who can't afford that luxury. you know, the low income folks liberals pretend to care about.

They may be able to afford different things if they had better paying jobs and if manufactured products were being made at fair labor costs.
 
They may be able to afford different things if they had better paying jobs s.

then they should do the things people do to make more money. Relying on the Government to do it for them...not the best way to go.
Of course-that lack of drive and intitiative is why they are dependent on the Gov't. in the first place.
 
then they should do the things people do to make more money. Relying on the Government to do it for them...not the best way to go.
Of course-that lack of drive and intitiative is why they are dependent on the Gov't. in the first place.

Being lazy is the only reason people rely on the government or hit hard times? You may want to leave your little hole occasionally and check out the real world.
 
Recipes, processes and training.

So, good employees who are happy with their work are not capable of doing a superior job. The have to be minimum wage robots with no future.

I see.
 
No one was ever objecting to employers voluntarily raising wages. This however has nothing whatsoever to do with the Minimum Wage.

Sure it does. IKEA people were making minimum wage, and the company jumped on the smart train and gave them a raise in effort to improve the company.

So, companies cannot improve: hmmmm
 
So, good employees who are happy with their work are not capable of doing a superior job. The have to be minimum wage robots with no future.

I see.

Yes, that's exactly what I said.

Oh wait, no it isn't.
 
Yes, that's exactly what I said.

Oh wait, no it isn't.

Right: in you view, companies cannot improve by raising wages.
 
if a company wants to raise wages, cool. makes me a lot more likely to do business with them. as for the national minimum wage, i would tie it to inflation. making the minimum wage $15 everywhere would be counterproductive. what we should do instead is guarantee debt free access to college or to post secondary job training. if we did that, a lot fewer people would be stuck at minimum wage long term, and most of those jobs would be filled by high school and college kids trying to make some extra money instead of by people who are trying to raise a family.

Gifts to the United States Government: Questions and Answers: Financial Management Service

here you go you can send all the money you want to support what you propose.
pass this to all of your friends that want the same thing.
 
Yeah, but WMT is paying that $8B in taxes on $458B in revenue.

Ikea's effective rate is 2.75% while Wal-Mart's is 1.7%.

So the "burden" of "high U.S. corporate taxes" isn't really a factor here.

Well let's has this out even further. IKEA's operating income was 3.7b euros, it's NET income was 3.2b euros. Basically paying just 500m euro in taxes. Wal Mart has an operating income of $27b and a NET income (after taxes) of $16.3b. So Wal Mart paid close to $9b in taxes.

We can literally say that if IKEA grew by 6xs their size to match Wal Mart sales.. IKEA's effective tax rate would be less then half of Wal Mart's $8b. IKEA's 500m euro tax bill into to dollars would be $555.56m. So doing the math you'd get something like this.. 555.56m x 6 = 3.3b. IKEA's tax bill if they were 6 times the size they are now.. would only be $3.3b or in euros.. 2.95b.

So yes, it's a factor. If I could have an extra $6 billion in net profit I could promise wage increases as well and If I could call my business a charity in NEVER have to worry about a take over.. I wouldn't have to worry about stock holders either which would save on dividend payments. IKEA uses dutch loopholes and that's something most American companies can't use.. especially companies which the majority of their business is in the US (Wal Mart). So an American company can't call it's self a charity and run a $4b profit which gets kicked back the non-existing charity but one on paper.

Sorry, but using IKEA as an example of how companies could "raise" or "afford" those raises is down right as fraudulent as IKEA claiming to be a charity.
 
But US revenue is their market and by taking better care of their employees, Americans will be more likely to shop there.

No, IKEA's biggest revenue markets are outside of the US. US only accounts for 3% of it's revenue. If you didn't shop at IKEA before this, you aren't gonna shop at IKEA after. The joke is IKEA stands for "sawdust held together with spit". It's really products made for hipsters who barely use the product, college kids and first time independent people. It's cheapness = lack of quality. As a college kid, my roommates and I had a lot of IKEA stuff.. and every year from Sophomore to Senior year.. we'd throw the **** away and star over the following year. It was cheaper then moving it.

So if you are looking to waste your money over and over in the your life time.. IKEA is great for you.. but if you are looking for quality furniture, IKEA is not it. When you get settled in your 20s into a 9-5 job you start looking for quality furniture when you look for your first home.
 
Right: in you view, companies cannot improve by raising wages.

A COMPANY might be able to improve based on raising their pay. But that pay has to be higher than other competing jobs. And raising federal minimum wage won't magically make workers work harder doing the same crappy job.
 
No, IKEA's biggest revenue markets are outside of the US. US only accounts for 3% of it's revenue. If you didn't shop at IKEA before this, you aren't gonna shop at IKEA after. The joke is IKEA stands for "sawdust held together with spit". It's really products made for hipsters who barely use the product, college kids and first time independent people. It's cheapness = lack of quality. As a college kid, my roommates and I had a lot of IKEA stuff.. and every year from Sophomore to Senior year.. we'd throw the **** away and star over the following year. It was cheaper then moving it.

So if you are looking to waste your money over and over in the your life time.. IKEA is great for you.. but if you are looking for quality furniture, IKEA is not it. When you get settled in your 20s into a 9-5 job you start looking for quality furniture when you look for your first home.

The US is IKEA'S US market. That's what I was saying. They are not going to screw up that market.
 
Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again

Ikea's Minimum Wage Hike Was So Successful, It's Raising Wages Again



So there goes the conservative assertion, “better your skills if you don’t want minimum wages”.

I told you guys that the wave was coming.


Happier and more responsible employees with better wages; who'd a thunk ti?

if a company wishes to rise it wages........fine i don't think you will find a problem with anyone....because its voluntary

its when companies are FORCED to rise wages you find problems, because its not voluntary.
 
if a company wishes to rise it wages........fine i don't think you will find a problem with anyone....because its voluntary

its when companies are FORCED to rise wages you find problems, because its not voluntary.

Everybody has to get along.
 
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