The Forum > General Discussion > When you cast your vote, please remember...
When you cast your vote, please remember...
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Ah, Belly, you just keep pushing the same barrow, don’t you.
If only you people knew, or even cared, how business works, you might just get the point.
Now let’s take the factory of 300 employees and that additional $400 grand the boss has just been burdened with by way of the pay rise.
In business you must turn a profit, otherwise, you wouldn’t be there, right?
So, it is only fair that if you have to outlay $400 grand, you should at least get $400 grand back for yourself, otherwise you would be better off placing a bet with better than even money odds, Agree?
Now, to get the $400K for wage rises + your $400K, you have to increase your price by $800K.
Now do you think his customer is going to wear that increase, or, do you think they might seek a cheaper alternative?
This is the problem with simply granting a pay rise for nothing in return. Pay rises must be driven by either productivity or profit gains, otherwise the employer looses out.
Often though, they simply ‘outsource’ wherever possible, which results in less factory jobs, which in turn pays for the pay rise for the remaining staff. And you lot think this is clever governing!