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Labor Markets: Hundreds of employees at the University of California at Berkeley are getting schooled in basic economics, as the $15 minimum wage just cost them their jobs. Too bad liberal elites “fighting for $15” don’t get it.
A week after California Gov. Jerry Brown signed the state’s $15 minimum wage boost into law, UC Berkeley Chancellor Nicholas Dirks sent a memo to employees announcing that 500 jobs were getting cut.
Coincidence? Not really.
Last year, University of California President Janet Napolitano announced plans to boost its minimum wage to $15 at the start of next school year, independent of the state law. Since UC Berkeley was already in financial trouble — it ran a $109 million deficit last year and is projecting a deficit of $150 million this year — number crunchers there had to have factored in the higher mandated wage when making their layoff decisions.
So now the $15 wage along with their financial flops is causing them to reduce their employees by 500 !!!
I wonder who the brilliant geniuses are behind the scenes of this new fiasco?
originally posted by: Joecanada11
You Americans are extremely lucky with your cost of living. The price of housing, food , cars and gasoline is much cheaper than what we pay in Canada.
You would need around 6,022.15$ (7,632.47C$) in Berkeley, CA to maintain the same standard of life that you can have with 5,600.00C$ in Vancouver (assuming you rent in both cities). This calculation uses our Cost of Living Plus Rent Index to compare cost of living. This assumes net earnings (after income tax).
originally posted by: Joecanada11
a reply to: schuyler
Yeah robotics are going to seriously cause issues with millions of low paying jobs. We are pretty much screwed when that happens.
originally posted by: Joecanada11
a reply to: IAMNOTYOU
Now that's some logical thinkig. It should be illegal for executives to get raises when they are laying people off or cutting employee pays and benefits but it seems to be the standard practice of corporate crooks.
I remember working for staples a few years back in their business to business division and they laid off 100 employees at my location because share prices were dropping but the CEO somehow got a bonus of over 2 million.
originally posted by: TinfoilTP
originally posted by: Joecanada11
a reply to: IAMNOTYOU
Now that's some logical thinkig. It should be illegal for executives to get raises when they are laying people off or cutting employee pays and benefits but it seems to be the standard practice of corporate crooks.
I remember working for staples a few years back in their business to business division and they laid off 100 employees at my location because share prices were dropping but the CEO somehow got a bonus of over 2 million.
If they don't give the money out as bonus then it is left as corporate profit and gets corporate taxed. So they let go the employees they transferred their payroll to the CEO so the money stayed on the same side of the books. If that money went into profit, they would lose more to taxes and giving out dividends to shareholders because stock prices would go up reflecting the new profit.
How do you know the CEO didn't reinvest that money back into the company at the low cost shares?
Looks like a smart move to save the company that was spin doctored to fit a hate wallstreet narrative.
originally posted by: xuenchen
So now the $15 wage along with their financial flops is causing them to reduce their employees by 500 !!!