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I have a really hard time with CEO vs worker pay discussions. It kind of drives me crazy. Lets take Starbucks, since I'm currently hearing unions complain about the disparity right now. The argument mostly feels like math blindness, but maybe my problem is that I'm bringing an abacus to a knife fight.
The Starbucks CEO makes $95 million a year. They argue this is outrageous because their employees only make $20/hour or whatever.
Why not complete the math? What if we took the Starbucks CEO, fired him, and redistributed his $95 million a year a salary to the workers? Well, the 361,000 workers would see their pay bumped by about $1 per day. It's really hard to get across that the workers at each Starbucks already capture a huge portion of the value of the cup of coffee they serve (aside from real estate costs, cost of goods, etc). The Starbucks CEO takes perhaps a 1 cent from that cup.
This is a simple economic fact that seems almost impossible to communicate. Unionization won't improve worker pay on this front because there isn't much on a per unit basis that can be squeezed to give to workers.
I mean, the union could say lets increase the cost of coffee at Starbucks by 2.5x so that every employee can now afford a 3 bedroom 2 bathroom house in their neighborhood but then their competitors would eat their lunch. And customers might actually be pretty outraged by the idea of paying $18 for a blended coffee plus tip. So, the unions don't try this angle.
In my town a particular annoying version of this argument is happening regarding a company that distributes Pepsi products in the region. They somehow ended up with a union 50 years ago which includes a pension. The company recently announced they can't fucking afford to give employees a pension anymore for the very not valuable job of delivering cases of Diet Pepsi to 7-11s all day and they want to switch them over to an 401k. This was an enormous outrage and the delivery people have been on strike over this for a year now. Going by the town's reaction, they seem to believe thousands of dollars per case of soda being delivered are waiting to be wrestled away from the evil classists who run the company.
It never occurs to anyone to learn to do something more valuable. Just that they need to win the fight against the classists, a fight that could not change anything if they won.
How much unrest is actually caused by failure to reason through 9th grade math regarding your personal conditions?
Is any of this even about actually improving worker conditions? I know it's cliche to be skeptical of unions but I honestly don't understand their modern presence at all.
To a first approximation, everyone is bad at math, and it's a rare person who applies it thoroughly to all parts of their lives. As a more immediate demonstration than abstractions around compensation, just pay a Starbucks worker cash for your latte and see them figure out the change.
For this particular case, union officials are absolutely aware of this, and I don't think it's common for a bargaining committee to push a fix to this as a demand during contract negotiations. Or, honestly, that it happens at all. Union staff have plenty of people who can do math. But it is an effective rhetorical move: it's evergreen and will always be true, so once the disparity becomes a true-ism among workers, it can be called on in any situation. The alternative would be to focus on e.g. profits. In which case, the rhetoric would entirely lose its potency: if high profits mean workers should get higher pay, then low or nonexistent profits would undercut any argument for improved pay.
Even if the math did work, there’s always the CEO’s perfect out— outsource their front-line labor to a company that does staffing and then only be compared to the C-Suite officers who make 80% of what he does. And I can’t imagine putting all coffhouse staffing under a temp to hire company is going to improve conditions let alone pay as it now makes wage competition nonexistent.
I literally can't imagine how bad the coffee would be from a company using pure temps.
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