Passing on business savings of reduction in Min Wage

Marcos the black

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I was listening to Matt Cooper this evening, discussing the planned reduction in the minimum wage. Matt introduced a restaurant owner, who Matt said employed 400 people. The Restaurant Owner, Jay ??, can't remember exactly, said that if the min wage was lower he COULD employ more people. Intersetingly he did not state that with the new proposed min wage that he WOULD employ more.
I was thinking: if half of his staff is on the min wage, that's 200: cost is €1 per hour reduced. That's 200*39 hours = €7,800 per week in savings for the employer.
I'm wondering will he pocket the money, or pass this saving on to his customers by reducing prices. If he chose the latter we may start getting places in reducing the cost of living in this country. Is there anyway to ensure that these reduced operational costs will be passed back to the consumer??
 


anarko

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we live in ireland
what do you think
to a certain extent i have as much sympathy for those business/shops as they had for me when they were robbing us
although obviously this doesn't apply to all
on the other hand i dont wish em any harm either

the reduction in the min wage is sick...
attack on the poor by filthy rich scum
isn't FG going to reverse it when they seize power.......petunia
 

ifreannach

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could never afford to eat in restaurants, get a take away in a blue moon

i wonder how much "jay" is on, i was listening to that and wondered what kind of car he drove
 
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Huh Do you know anything about restaurants ?

Good luck if you can find 400 employees of someone who employees 400 in Hospitality who do 39 hours a week.

Chances are majority of staff do 16 hours or less.
 

galleyslave

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and perhaps he's losing money now and this will help him break even or god forbid, make a small profit...
 

Jethro

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I'm wondering will he pocket the money, or pass this saving on to his customers by reducing prices. If he chose the latter we may start getting places in reducing the cost of living in this country. Is there anyway to ensure that these reduced operational costs will be passed back to the consumer??
If the staff are happy with new terms, what business is it of ours?
 

hammer

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Surely the staf fhave an option of staying and working for €7.65 an hour or moving to a different employers that hasn`t reduced minimum wage to exisiting staff.

My belief is that the minimum wage of €7.65 will be the new rate for new staff.
 

myhonorisloyalty666

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I'm wondering will he pocket the money
Pocket the money? Many small business people are barely surviving because they pour all their profit back into business to keep it going.
The people who tried to maintain their lavish lifestyles are all gone.
The people who are still clinging to life in the business world lived frugally during the boom and are living even more frugally now.
When the government reduce the minimum wage it is just the life line that these business people need.
It is the difference between surviving or folding up completely.
Businesses like these are paying the taxes that keep many people on welfare fed, clothed and housed.
A reduction in the minimum wage will make a big difference.
 

Marcos the black

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Huh Do you know anything about restaurants ?
Good luck if you can find 400 employees of someone who employees 400 in Hospitality who do 39 hours a week.

Chances are majority of staff do 16 hours or less.

I do thanks, my primary degree is in Hotel and Catering Mgmt, and worked in enough of them to know how things work. While I accept your point that not everyone works on a full time basis, a lot would work overtime to there is some offsetting that takes place.
But having said that, the basic fact remains that for every manhour worked in his restaurant(s) his costs are now reduced. So agian my general question was: is there anyway to ensure that these saving are passed back into the economy instead of a few people pocketing these savings?
 

Baron von Biffo

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Older readers will recall that years ago the restaurant sector campaigned for a reduction in VAT on their product. "The extra cost of VAT makes meals too expensive" they said. "If VAT was cut we would do more business so we could employ more people and everyone would win." Well the government eventually rolled over and cut the VAT. What did the restaurateurs do? They hiked their prices up to the old VAT inc price. Easier to rob existing customers than try and find new ones you see.

If there's anyone out there who really believes that slashing the MW will see Irish SMEs drop their prices please PM me about a selection of lovely roundabouts I'm selling.
 

Baron von Biffo

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Pocket the money? Many small business people are barely surviving because they pour all their profit back into business to keep it going.
The people who tried to maintain their lavish lifestyles are all gone.
The people who are still clinging to life in the business world lived frugally during the boom and are living even more frugally now.
When the government reduce the minimum wage it is just the life line that these business people need.
It is the difference between surviving or folding up completely.
Businesses like these are paying the taxes that keep many people on welfare fed, clothed and housed.
A reduction in the minimum wage will make a big difference.
Someone who uses the motto inscribed on SS daggers as his nome de plume could hardly be expected to have much concern for the suffering of others.
 

Dunlin3

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The minimum wage is not the problem for most businesses. They have to pay rates, water charges, recycling fees and somethink like 10.75% PRSI for the privalage of employing someone. Add to that the cost of complying with all kinds of red tape, CSO returns, accountants fees. It just cost us €2500 for our accountant to file our annual returns etc. The accounts were already prepared for him, a few hours work max.
 

Marcos the black

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The minimum wage is not the problem for most businesses. They have to pay rates, water charges, recycling fees and somethink like 10.75% PRSI for the privalage of employing someone. Add to that the cost of complying with all kinds of red tape, CSO returns, accountants fees. It just cost us €2500 for our accountant to file our annual returns etc. The accounts were already prepared for him, a few hours work max.
Accepted, but it still doesn't change the fact that his labour costs are now falling... When they go up, prices go up, when they come down...?? I'm not so sure.
 

Dunlin3

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Accepted, but it still doesn't change the fact that his labour costs are now falling... When they go up, prices go up, when they come down...?? I'm not so sure.
Many businesses have already cut the prices of their goods and services by cutting costs including wages.
 

Cael

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I was listening to Matt Cooper this evening, discussing the planned reduction in the minimum wage. Matt introduced a restaurant owner, who Matt said employed 400 people. The Restaurant Owner, Jay ??, can't remember exactly, said that if the min wage was lower he COULD employ more people. Intersetingly he did not state that with the new proposed min wage that he WOULD employ more.
I was thinking: if half of his staff is on the min wage, that's 200: cost is €1 per hour reduced. That's 200*39 hours = €7,800 per week in savings for the employer.
I'm wondering will he pocket the money, or pass this saving on to his customers by reducing prices. If he chose the latter we may start getting places in reducing the cost of living in this country. Is there anyway to ensure that these reduced operational costs will be passed back to the consumer??
Alot of these scumbags dont even pay the minimum wage anyway. They prefer illegal workers so that they can pay them less than minimum.

But, its interesting, its said that the cuts will cost the average middle class person 20 euro a week. By cutting a euro off the minimum wage, Fianna Fáil are cutting 40 euro or more off the lowest paid workers, i.e. the people who got absolutely nothing out of the property scam.
 

Baddaddy

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Accepted, but it still doesn't change the fact that his labour costs are now falling... When they go up, prices go up, when they come down...?? I'm not so sure.
So are you saying that he/she is personally pocketing the difference, or is he/she trying to run a company/business and employ people, today and into the future?

What? as i find your theories, simplistic...
 

Gael Nua

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Only thing in this instance is the minimum wage in Catering is 9.31 and the 4 Year Plan didn't indicate it would go after the Minimum rate, but would go after the Minimum Sunday rate of time and a third.
 
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To ask if people will pocket the money or pass on the savings is to misunderstand the question-
When people say they were being ripped off during the boom, what they should really say is that they were willing to pay more than they should have- a clear sign of too much money in the system...and now we're paying the price. I walked out of the hairy lemon in dublin the other day because of their ridiculous prices... 2 years ago I wouldn't have. It's your fault if you spend too much; the guy charging you is only doing his job.
I have a small business- very small business, only 5 employees (2 full time, 3 part time). I haven't taken a wage for 6 months and my staff took a reduction which has left two of them on the minimum wage... now I don't want to have to reduce it again now that I can, but if I have to reduce costs further it may be a necessity. And certainly, if things pick up, the new-hire rate would definitely be €7.65. So, in my opinion it offers a little more flexibility and increases (if only marginally) the chances of new hiring.
That said, they could have reduced employers PRSI and regulate our electricity/gas markets better and we would all feel the benefits.
 

Cael

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To ask if people will pocket the money or pass on the savings is to misunderstand the question-
When people say they were being ripped off during the boom, what they should really say is that they were willing to pay more than they should have- a clear sign of too much money in the system...and now we're paying the price. I walked out of the hairy lemon in dublin the other day because of their ridiculous prices... 2 years ago I wouldn't have. It's your fault if you spend too much; the guy charging you is only doing his job.
I have a small business- very small business, only 5 employees (2 full time, 3 part time). I haven't taken a wage for 6 months and my staff took a reduction which has left two of them on the minimum wage... now I don't want to have to reduce it again now that I can, but if I have to reduce costs further it may be a necessity. And certainly, if things pick up, the new-hire rate would definitely be €7.65. So, in my opinion it offers a little more flexibility and increases (if only marginally) the chances of new hiring.
That said, they could have reduced employers PRSI and regulate our electricity/gas markets better and we would all feel the benefits.
Did it ever occur to you that you arent doing your servants any favours?
 


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