Otherwise, they are committing suicide. It is impossible to placate the Left. You only encourage them.
I recently posted about Walmart closing hundreds of stores and raised the possibility that this was the result of Walmart’s wage increase. Now Tyler Durden of ZeroHedge weighs in on the issue, telling Walmart that they should “never listen to the left.” Back when Walmart raised the wage Mark Horne raised the possibility that the retail giant was hoping to stop criticism. For Durden, there is no question: Walmart was indubitably trying to satisfy the living wage Leftists.
Walmart decided to no longer pay employees the minimum wage but to set a floor on wages at $9 an hour. Boom. Suddenly the new employees were making as much as the employees who had stayed on the job and earned raises. Walmart basically demoralized their experienced workforce.
The fact that Walmart didn’t foresee this happening is itself evidence that Durden is right: This wasn’t a careful financial decision but an attempt to win the Left’s approval.
And because they won’t back down from their original ill-conceived pay raise, Walmart is giving everyone a two-percent raise at an estimated cost of $2.7 billion dollars. I wonder what is going to have to happen to prices to sustain these new labor costs? Will Aldi and various dollar-store chains get more business as people find that Walmart is no longer a bargain.
At least they are recognizing that the longtime workers who are already making more than $10 need something,” union-backed OUR Walmart’s Tyfani Faulkner added, before noting that she “doesn’t think 2% is enough for employees that often make so little to begin with.”
Precisely. These dribs and drabs may have some symbolic value and may bolster WalMart’s image as a good corporate citizen, but let’s not kid ourselves: a 2% raise isn’t going to be a life-changing event for the vast majority of the company’s employees who are still going to struggle.
Exactly. Not even fifteen dollars an hour would be a “living wage” for many people. Leftists simply campaign for these amounts to have an achievable goal. As soon as they get that pay raise they will start new complaints and argue that they should be paid more.
They will move the goal posts.
There will be evidence for Leftists’ concerns. Any minimum wage hike they get, besides throwing people out of work, will cause prices to go up. The inflation will be used as an excuse to increase minimum wage.
Placating Leftists is an endless cycle.