Comments by "Andy Monaghan" (@229andymon) on "The New Statesman"
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@DJWESG1 Indeed, in fact an increase in labour costs could even lead in some cases to redundancies. But, if the alternative is paying peanuts, not only do you risk getting (demotivated) monkeys, but you condemn people to a rubbish life.
We also need to study far more carefully than we normally do how much exactly is represented by a rise in labour cost, as well as alternatives to saving that money. If the labour component of production cost is, say, 10%, then a 10% rise in that cost, wouldn’t even represent a 1% rise in the price, given profit margin is added. How many people that comment a wage rise demand is “too much” have any clue how much that actually works out?
Of course, a reduction in profits, directors bonuses and salaries or dividends could also be considered, but how often do we see that? Far easier to blame the poor schmuks on the shop floor, eh. They must bear the burden, including for management mistakes, like VW dieselgate for instance.
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