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Liberals plan on a major boost to the minimum wage jumping from the current $11.40 to as high as $15

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  • Aug 12th, 2017 6:01 pm
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Jun 26, 2011
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alanbrenton wrote:
Aug 8th, 2017 4:17 pm
I'm not going to shoplift but I would feel less guilty to skip scanning a few products with these self-serve check outs.
Really? I'd feel like I was stealing, because I would be.
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Apr 21, 2004
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RolandCouch wrote:
Aug 8th, 2017 8:36 pm
Really? I'd feel like I was stealing, because I would be.
I never said it wasn't stealing. It's just much easier to do without human element involved.
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alanbrenton wrote:
Aug 8th, 2017 8:56 pm
I never said it wasn't stealing. It's just much easier to do without human element involved.
Easier, yes. Wouldn't make me feel less guilty though.
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RolandCouch wrote:
Aug 8th, 2017 9:14 pm
Easier, yes. Wouldn't make me feel less guilty though.
No one is singling you out as a shoplifter.

I think you guys are right. I thought the greeter provided a human element but they also check contents against the receipt, which is probably the theft deterrent.
http://business.financialpost.com/news/ ... d504ce1dd3
http://fortune.com/2016/05/04/walmart-b ... ght-theft/
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alanbrenton wrote:
Aug 8th, 2017 4:17 pm
I'm not going to shoplift but I would feel less guilty to skip scanning a few products with these self-serve check outs.

Even with the $1 McD thread, people are more comfortable re-registering the app to avail of the $1 Big Mac at the kiosks but not over at the cashier.

We'll have to see how cost effective these self-check outs are.

I think it's being penny wise but pound foolish for many grocers.
I see people stealing the plastic bags -_-"
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Mar 18, 2015
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Or instead of skipping scanning, you could just try to live by reducing as many of the 'things' you buy as you can. (I know this is RFD, but not everyone comes on this forum to find out how to throw money out on deals, some of us want to find out if the stuff we need can be bought for cheaper). Buy less stuff and only when you need it. You will be surprised at how much crap an average person has in their room that is used probably once a year or never.
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apnayloags wrote:
Aug 3rd, 2017 7:40 pm
just saw in a shopers drug mart the other day in the mall...........only 1 cashier, and 3 self-serve checkouts........long lineup.
guess what, we used the self-serve checkout.
Get ready for such scenarios to be more and more common once $15 kicks in
I have seen this happen for years at SDM and many places. When min wage was $8, $10, $11 etc.

Only a min wage of $0 will stop companies from automating processes. If I can add another million to my net income by automating, I dont give a crap about whether the guys are being paid $15, $11 or $5 an hour.
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Sep 23, 2009
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Crichtonfan wrote:
Aug 12th, 2017 11:44 am
I have seen this happen for years at SDM and many places. When min wage was $8, $10, $11 etc.

Only a min wage of $0 will stop companies from automating processes. If I can add another million to my net income by automating, I dont give a crap about whether the guys are being paid $15, $11 or $5 an hour.
You do an analysis to see if it is worth it or not.

Let's say it costs $2 Million to automate a store and yearly savings are $500,000 while machines need to be replaced every 10 years.

In this case, you pay $2 Million upfront and save $500,000 for 10 years. Going forward for simplicity sake, we will use a 0% interest rate.

In this case, the company can increase profit by about ($500,000*10 years savings - $2 Million upfront cost) $3 Million.

If minimum wage increases from $11.40 to $15.00 that's an increase of 31.58%

So, instead of saving $500,000 a store can save roughly $657,900.

Keeping other facts the same, by reducing labour costs by an additional $157,900 per year for 10 years, profit will increase to $4,579,000

So, if minimum wage increases 31.58% and machinery to automate remains constant price, a company will see an increase of 52.63%

So, by increasing minimum wage by 30% in one shot, many companies may make the choice to automate because the return is real nice.

If minimum wage was $0, and people worked for $0, then automating for a cost greater than $0 would not make sense.

That's the analysis that is done, if the company only saved $200,000 a year by automating and the system costs $2 Million and needs to be replaced in 10 years, than it doesn't make economic sense to do it.

Finally, if the company only saved $200,000 a year by automating and the system costs $2 Million and needs to be replaced in 10 years, than it doesn't make economic sense to do it.

However, if the amount saved of $200,000 increases by 31.58%, then automating would save $63,160 per year or generate increased profits of $631,600 over 10 years.

Of course, there may be other reasons to automate. But this is just looking at it in terms of costs and profitability.
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renoldman wrote:
Aug 12th, 2017 3:26 pm
You do an analysis to see if it is worth it or not.

Let's say it costs $2 Million to automate a store and yearly savings are $500,000 while machines need to be replaced every 10 years.

In this case, you pay $2 Million upfront and save $500,000 for 10 years. Going forward for simplicity sake, we will use a 0% interest rate.

In this case, the company can increase profit by about ($500,000*10 years savings - $2 Million upfront cost) $3 Million.

If minimum wage increases from $11.40 to $15.00 that's an increase of 31.58%

So, instead of saving $500,000 a store can save roughly $657,900.

Keeping other facts the same, by reducing labour costs by an additional $157,900 per year for 10 years, profit will increase to $4,579,000

So, if minimum wage increases 31.58% and machinery to automate remains constant price, a company will see an increase of 52.63%

So, by increasing minimum wage by 30% in one shot, many companies may make the choice to automate because the return is real nice.

If minimum wage was $0, and people worked for $0, then automating for a cost greater than $0 would not make sense.

That's the analysis that is done, if the company only saved $200,000 a year by automating and the system costs $2 Million and needs to be replaced in 10 years, than it doesn't make economic sense to do it.

Finally, if the company only saved $200,000 a year by automating and the system costs $2 Million and needs to be replaced in 10 years, than it doesn't make economic sense to do it.

However, if the amount saved of $200,000 increases by 31.58%, then automating would save $63,160 per year or generate increased profits of $631,600 over 10 years.

Of course, there may be other reasons to automate. But this is just looking at it in terms of costs and profitability.
What all this fancy analysis fails to realize is that automation (which is really one facet of the age old market efficiency being chased) has been slowly creeping up on us despite whatever is the minimum wage. The only reason it hasn't come faster is because the other option made more profit. However, raising the minimum wage is now making the inevitable happen faster. Besides this, I mentioned I have seen understaffed businesses for years even when minimum wage was $8.

And that was my only point, not what $15 will currently do. Thats one of the many things the business guys cry over all the time.

Most people are probably upset here because they fear the upheaval will now come in their generation instead of the ones later on.

P.S. that "analysis" looks way cherry picked. You are saving $500000 by replacing humans. That includes stuff such as benefits, health and safety regulations, PPE considerations, training etc etc. A turn key automation system once perfected is surprisingly low cost to maintain. Adding that 31% wage increase to that savings figure doesn't even make sense. Also your savings math seems wrong suggesting a 5 mill saving by keeping min wage at $11.40. All I can say is good try but not convincing.

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