[quote=SD Realtor]
It is all about net profit. McDonalds is an example that looses the wage scale battle. As NSR pointed out in his argument about the place in Colorado, paying those employees more makes sense because it saves the company money in the long run due to retention and employee training costs. Thus the company becomes more profitable by doing so. This is a valid argument and makes alot of sense.
[/quote]
In this particular example of the meat packing facility it looks like there’s an actual shortage of labor. If you do indeed have an actual shortage of labor the first response might be to market or expand recruiting operations, but if that doesn’t work the next step would be to raise the wages. At some point these facilities will have to come up with a solution whether it’s automation, raising salaries, or increasing the total compensation package for the employees.
McDonald’s doesn’t seem to have a labor shortage. In a certain locations like Aspen, CO maybe they do and are forced to pay employees more and charge higher prices, I don;t know but it wouldn’t surprise me. Of course in most cities there’s plenty of low skilled labor available just looking for a part time job to get some discretionary income. They aren’t trying to raise a family on a single minimum wage job.
