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The Forum > General Discussion > Higher wages and conditions, but where do they come from

Higher wages and conditions, but where do they come from

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As a long term retailer, I am the first to admit the wages in this sector may appear quite low.

However, have you ever given true consideration as to just where those wages come from. The answer of cause is profits, gross profits to be more precise.

While it is all well and good to get on ones high horse and claim that many in this sector, (including hospitality and tourism) are underpaid, the reality is, the pay rates are set by the very people who complain, the consumer, as it is their dollars that determine the gross profits made, which in turn pay all expenses, including wages.

We already pay $45 per litre for warm milk, and $8 for eggs.

Of cause we all know the FWC is about to hand down its decision on penalty rates, hopefully before the election, and it is my tip that with the exception of the 25% loading on weekends, every day will simply be a day ending in 'Y' and rightly so. Public holidays being the exception.

So for those who feel these workers are hard done by, ask yourselves two very basic, yet VERY IMORTANT questions.

1. Do I shop online to save money?

2. Do I shop around seeking out the best prices?

Now if you answer yes to either or both of these questions, do you think that you are actually a huge part of the reason why these wages are low.

If not, why not?

The other point you should observe is Target and Woolworths.

Say they are forced to increase wages by 10% across the board. Do you think they could afford that, or more so, do you think their respective shareholders would cop that?

BTW, if a product is discounted by just 10%, the retailer has to sell 50% more stock to make the same gross profit dollars.

Finally, don't make this another dud thread, because while its all well and good to want something, it has to be sustainable so lets not let the truth get in the way of a good story hey.
Posted by rehctub, Saturday, 7 May 2016 6:52:58 AM
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I give up where are you shopping?
Quote "We already pay $45 per litre for warm milk"
Posted by Philip S, Saturday, 7 May 2016 10:25:17 PM
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Yes Phillip, its a tricky one I know, but most people who buy a cappuccino pay $45 per litre for milk and are totally unaware of this. I often use this one when people question my top shelf rib fillet at $40 per kilo.

I'm interested to know if people actually stop and think what causes wages to be low in certain sectors.

I'm also interested to know if people who shop online, or seek the best deal are aware that they are partly responsible for the lower wages. You see, it's all well and good to want a bargain, but where are the savings going to come from. Surely they don't expect the retailer to carry all the losses. Or do they!
Posted by rehctub, Sunday, 8 May 2016 7:20:24 AM
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Butch The industries that you talk about are represented. Anyone and everyone can make a cup of coffee and that is the problem. A low cost set up and ease of operation leads to an oversupply.

It is unfair to penalise workers for not enough custom.
Posted by 579, Sunday, 8 May 2016 7:26:00 AM
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Butch, any 'chop shop' charging $40 a keg for fillet is over charging. Down at 'Aldi' its $30 a keg, 25% cheaper, and wages are 25% higher than the retail award!

Milk $45 litre, not to mention the price of sugar! $1000/Kg!

and if you want an egg in your latte, it will cost you an extra 8 bucks! at 'The Butch Brasserie'

My calculations, doing 1,000 cups a day, half with eggs, the rest with a side order of fillet, that's 14 5/8 minus elevnteen and a quarter, times the number I first thought of, that's 10 grand a day and i haven't even paid my staffy his 10 buck cash in hand for knocking it all up for me, while I cruise the Caribbean.

If any of you could take pity on a poor battler, please send cash donations only, no Eftpos, I can't afford to pay the GST!
Posted by Paul1405, Sunday, 8 May 2016 12:00:26 PM
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oh dear Philip, 1000 cups a day you say.

It takes about 3 min to make a coffee, so that's 20 per hour max, so I doubt one person can do that mate, but good try.

May I suggest if you are happy with the Aldi $30 rib, good for you as my customers love what I sell. Furthermore, Aldi don't produce, they buy and seel so their margins are very small. They simply find some mug to work for very little to do it for them, and good for them too.

579, over supply means less jobs, more workers, and lower pay rates, once again consumer driven.
Posted by rehctub, Sunday, 8 May 2016 1:18:14 PM
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