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Politics : Formerly About Advanced Micro Devices

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To: J_F_Shepard who wrote (859178)	5/21/2015 10:55:18 PM
From: TimF	1 Recommendation Recommended By i-node Read Replies (1) of 1575165

Any job or process that is repetitive is likely to be automated, it doesn't matter what they are paying for the labor at this moment.. It matters quite a lot. Automation costs money, a lot of it up front. Money now is worth more than money in the future. If pay is low you keep a lot of people that otherwise would be automated away. Like pay time and a half to work overtime? No, not for the most part. Maybe a little since your giving up your buffer in terms of extra employment, or maybe you crack down harder on OT because even the base is more expensive. Depends on the business and its management decisions. Often it can be more like fire your least productive employees and push those who remain to take up the slack. As for merit pay 1 - It's very different than using whips. Its giving you more when you do well, not hurting you if you don't. Its also not most of what I'm talking about (since pay is already causing problems for the business with a much higher minimum). OTOH There is a similarity. With merit pay the employer chooses to pay more to reward those who do more for him. This is more the reverse in order. The employer is forced to pay more, so he looks only for workers who will do more for him. (Sure he would have liked to have had them before but he couldn't get as many or keep them when he paid less.) Any person who can't afford to pay the going rate for labor needs to adjust his business model to keep his production up or he doesn't deserve to be in the business...... They are paying the going rate. Your trying to make them pay more. Also what do you thin adjusting your business model often means when labor becomes much more expensive? Give you a hint, it doesn't usually involve higher more employees. They don't deserve to go under because of some new negative law, but to the extent they do it just makes the higher minimum more damaging.

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