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Minimum wage help. Do I give them a pay rise?

(46 Posts)
Westfox Sat 04-Feb-17 12:48:09

Hi......So my state has just introduced a minimum wage. It's causing me a problem.

We have some people who do unskilled work, they are good at what they do. But the problem is that when I put their pay up. They are on the same as the graduates.

Therefore I feel that their pay has to go up, and so on up the chain so we maintain separation between skill levels.

If I leave the graduates on the same pay they are on they will get pissed off and leave.

For comparison. My paramedic BIL was earning good money ($15/hr) now he is just above minimum wage. He is pissed off he has college debt to pay off, plus his job is stressful. He says why should he bother if his skills ar not recognized. He may as well take a slight pay cut and have a easy life flipping burgers.

Help! I need some input

MinnowAndTheBear Sat 04-Feb-17 12:49:24

Everyone's wages need to rise.

Westfox Sat 04-Feb-17 12:50:54

Thanks minnow that's what I want to do, My business partner challenged me and I needed to think about it.

IateallthePies654 Sat 04-Feb-17 12:51:10

Pay everyone one more.

IateallthePies654 Sat 04-Feb-17 12:51:47

Idk where that random "one" came fromconfused

ThisIsStartingToBoreMe Sat 04-Feb-17 12:54:01

Yep you just need to put everyone's wages up.

If your BIL has a problem with his wages he needs to discuss that with his employer surely?

Westfox Sat 04-Feb-17 12:57:54

He doesn't want to bring it up with his employer, he is new with the company and wants to keep his head down

Crankycunt Sat 04-Feb-17 12:58:37

Minimum wage is the wage that someone sells their labour and time for.

They may not have a degree, however their input into your business is as valuable and needed as the graduates.

Everyone's pay needs to go up.

With regards to your brother, it's not that someone flipping burgers is paid too much, your brother isn't paid enough for his skills.

angeldelightedme Sat 04-Feb-17 13:02:41

Are the graduates on a training scheme? Have the people on Mon wage got more experience than the grads?

daisypond Sat 04-Feb-17 13:52:49

Are the graduates straight out of college? In which case, they could equally be considered "unskilled" - it depends what they're doing or what subject they graduated in. Are the graduates doing work that is more profitable or useful for the company?

witsender Sat 04-Feb-17 13:56:54

A job pays what it pays, regardless of qualification. But yes, it is right that minimum wage has increased, but it may mean bumping others up too.

Allthewaves Sat 04-Feb-17 15:18:27

I would think graduate pay would have to be above minimum wage unless you are training them to get specific qualifications ect

MovingOnUpMovingOnOut Sat 04-Feb-17 15:28:00

Totally depends on market rates. Having to increase at the bottom does not always mean having to increase all the way up the line. Is that even a realistic option for your business?

How likely are the graduates to leave? Are they mid way through a traineeship? Are there other jobs/traineeships available that pay more?

Are you just paying more because they are graduates?

If this was the UK (which I'm assuming it isn't since you mention dollars and State) we pay for the job being done and the skills required. We are not allowed to discriminate based on protected characteristic such as sex and there have been several precedents set recently about sex discrimination: dinner ladies being paid less than bin men; shop floor workers being paid less than the men in the wareshoude, where the job evaluation found the skills required for the roles were of equal and similar standing.

I think you need to dispassionately analyse the risks to the business for each potential scenario and the status quo. Consideration of the costs and benefits is very important here.

I would also consider doing something with job evaluations depending on what came out of that assessment.

Westfox Sat 04-Feb-17 17:21:27

I believe the business can support it. We provide assisted care, and care equipment maintenance and we can put prices up and renegotiate contracts.

We may do some kind of performance related increase

haveacupoftea Sat 04-Feb-17 17:23:25

Give everyone a pay rise and just fondly remember the time when you were allowed to pay everyone a pittance.

Westfox Sun 05-Feb-17 00:14:25

Our staff are paid well for what they do, they get health insurance, pension,10 days paid leave. I hate 0 hour contracts so everyone is on a "at will" contract guaranteed 40 hours

MrGrumpy01 Sun 05-Feb-17 00:33:35

Gracious the UK really is streaks ahead when it comes to employment rights if 10 days annual leave is seen as generous.

There has been similar discussions in the UK over the living wage and the then very small gap between that and roles expected to have lots if qualifications, I can't see wages rising across the board.

Tbh I've seen this happening in the UK and with the fairly quick planned rise in nmw I think it will continue-haven't the numbers earning nmw risen over the years as more and more roles have fallen in to it? Gaps between grades seem to be pretty small in a lot of places.

Westfox Sun 05-Feb-17 02:01:10

Over here paid holiday is a paid perk of the job not a legal requirement.

Compared with the UK there are less laws. But instead we have more trust between employers and employees. At will contract meant you can get sacked with no warning or reason. But the employee can leave with no warning or reason.

An example would be Walmart. 0 holiday first year 1 day second year.

EmeraldScorn Sun 05-Feb-17 02:49:14

How is "flipping burgers" an "easier life"?? Either your brother in law has ideas above his station or you both do - Your brother in law's 15 dollars an hour would make life far easier for him than for someone earning 8 dollars an hour!! Snobbery and superiority.

You shouldn't even have to seek advice on whether to pay the minimum wage, common decency would dictate paying someone a fair amount (Minimum wage is low anyway, so if you've been paying employees even less then they have my genuine sympathy).

People need to eat and pay their bills, even if their level of education isn't to your standards and as for "recognising skills" I feel it is more incumbent that we recognise poverty!!!!

steff13 Sun 05-Feb-17 03:18:50

What state are you in that just introduced a minimum wage? The US has a federal minimum wage. States have always been able to pay above that, but not below.

ItsLikeRainOnYourWeddingDay Sun 05-Feb-17 04:03:03

Paid leave in the US is absolutely shocking. How do you have a life if you only get two weeks off paid a year?!

As for your bil - I am shocked that someone's whose job is literally to save lives is paid such a small amount. $15 an hour can't be much more than £10 an hour 😕

Westfox Sun 05-Feb-17 04:09:51

steff13 You are correct, there is a fed minimum which we have abided by. Maine just approved its own which is above federal

Westfox Sun 05-Feb-17 04:11:51

ItsLikeRainOnYourWeddingDay

We have a strong belief that evenings weekends are important and not to be waisted.

WhereYouLeftIt Sun 05-Feb-17 04:13:31

"We have some people who do unskilled work, they are good at what they do. But the problem is that when I put their pay up. They are on the same as the graduates. "
So what you are paying your graduates now is what your state regards as minimum wage? In the UK the minimum wage is not considered to be great money. It's frankly less that you need to live on.

It really sounds as if you are paying people - unskilled and graduates - a pittance.

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