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Why Companies continue to loose employees

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Posted by tree68 on Tuesday, July 19, 2022 7:01 AM

It's been said that the gap between the top and the bottom wages has been increasing (insanely) for years.

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Posted by Ulrich on Tuesday, July 19, 2022 7:06 AM

Electroliner 1935

 Some companies would not treat an animal as they treat their employees.

 

Yet some people choose to work there because??? 

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Posted by Ulrich on Tuesday, July 19, 2022 7:15 AM

tree68

It's been said that the gap between the top and the bottom wages has been increasing (insanely) for years.

 

 

Just the same, the lot of those who find themselves at "the bottom" is generally better than it was a hundred years ago. Compare the life of a railroader (they're not at the bottom but just by way of example) of 1922 to one of today and I doubt that anyone would say that things were better in 1922. Of course, the rate of improvement is not linear.. maybe things were better 15 years ago or 30 years ago... but over longer spans things have always improved. What we're experiencing now is serious, and the logjam it will cause in the supply chain will be remembered for years, but this too shall pass, and by 2122 it will be no more than a footnote... remembered by historians only. 

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Posted by Euclid on Tuesday, July 19, 2022 7:55 AM
How much gap should there be between the top and bottom wages?
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Posted by BaltACD on Tuesday, July 19, 2022 8:23 AM

Euclid
How much gap should there be between the top and bottom wages?

Since you are asking the question - poist YOUR answer, since you will disagree with anyone else's.

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Posted by Ulrich on Tuesday, July 19, 2022 8:42 AM

Euclid
How much gap should there be between the top and bottom wages?
 

 

Only Mr Market knows the answer to that. And Mr. Market simply reflects our values as a whole.. 

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Posted by Murphy Siding on Tuesday, July 19, 2022 8:54 AM

BaltACD

 

 
Euclid
How much gap should there be between the top and bottom wages?

 

Since you are asking the question - poist YOUR answer, since you will disagree with anyone else's.

 

Laugh

Thanks to Chris / CopCarSS for my avatar.

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Posted by Euclid on Tuesday, July 19, 2022 9:24 AM
I have never suggested or believed that there is any control that determines how large or small the gap between highest and lowest wage should be.  But many people here and elsewhere complain that this gap is too large.  So since they know this, they ought to be able to explain how large is too large.  Of course everyone has the freedom to start their own company and make all pay equal from top to bottom.  Actually I don’t expect people to answer these questions. The answer is in their refusal to answer.  It works like a charm. 
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Posted by Ulrich on Tuesday, July 19, 2022 9:45 AM

Euclid
I have never suggested or believed that there is any control that determines how large or small the gap between highest and lowest wage should be.  But many people here and elsewhere complain that this gap is too large.  So since they know this, they ought to be able to explain how large is too large.  Of course everyone has the freedom to start their own company and make all pay equal from top to bottom.  Actually I don’t expect people to answer these questions. The answer is in their refusal to answer.  It works like a charm. 
 

 

The control is supply and demand. You and I might not believe that an entry level NHL hockey player should make more than an experienced cancer researcher.. but the market says otherwise. Diddo for the spread between what the CEO gets and what the worker bees get.. the market is the mechanism that controls the spread. 

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Posted by BaltACD on Tuesday, July 19, 2022 10:04 AM

Euclid
I have never suggested or believed that there is any control that determines how large or small the gap between highest and lowest wage should be.  But many people here and elsewhere complain that this gap is too large.  So since they know this, they ought to be able to explain how large is too large.  Of course everyone has the freedom to start their own company and make all pay equal from top to bottom.  Actually I don’t expect people to answer these questions. The answer is in their refusal to answer.  It works like a charm. 

Turds smell.  Works like a charm.

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Posted by SD70Dude on Tuesday, July 19, 2022 10:30 AM

Ulrich
Electroliner 1935

 Some companies would not treat an animal as they treat their employees.

Yet some people choose to work there because??? 

$$$.  If you're living paycheck to paycheck you might be willing to put up with a lot more crap at work.  

And in the case of the railroads it might be the best paying job they can get in that area.

In the U.S. there is also the little issue of health insurance.

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Posted by zugmann on Tuesday, July 19, 2022 10:37 AM

Health insurance, RR retirement, and many business owners in a lot of areas still think it's 1950 and $11 an hour is a lot of money. 

And I know this is weird, but many RRers actually like RRing. 

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

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Posted by Euclid on Tuesday, July 19, 2022 10:39 AM

Ulrich

 

 
Euclid
I have never suggested or believed that there is any control that determines how large or small the gap between highest and lowest wage should be.  But many people here and elsewhere complain that this gap is too large.  So since they know this, they ought to be able to explain how large is too large.  Of course everyone has the freedom to start their own company and make all pay equal from top to bottom.  Actually I don’t expect people to answer these questions. The answer is in their refusal to answer.  It works like a charm. 
 

 

 

 

The control is supply and demand. You and I might not believe that an entry level NHL hockey player should make more than an experienced cancer researcher.. but the market says otherwise. Diddo for the spread between what the CEO gets and what the worker bees get.. the market is the mechanism that controls the spread. 

 

So then why do some people cite a difference between the top and bottom wage as being unfair?  They always refuse to answer that question. 
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Posted by Ulrich on Tuesday, July 19, 2022 10:41 AM

zugmann

Health insurance, RR retirement, and many business owners in a lot of areas still think it's 1950 and $11 an hour is a lot of money. 

And I know this is weird, but many RRers actually like RRing. 

 

Hey, not that weird.. I like my job too although it has its drawbacks.. customers who don't pay.. accidents.. stolen loads.. freight claims.. but.. I guess overall it still pays the bills and beats gargling broken glass. 

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Posted by zugmann on Tuesday, July 19, 2022 10:44 AM

Euclid
So then why do some people cite a difference between the top and bottom wage as being unfair?

Who cited that?

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

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Posted by BaltACD on Tuesday, July 19, 2022 11:42 AM

zugmann
 
Euclid
So then why do some people cite a difference between the top and bottom wage as being unfair? 

Who cited that?

I'll not cite anything - the $7.75 'minimum wage' at 8 hours per day and 260 days per year works out to $16,120. The photo I posted earlier showed Foote's total compensation to be north of $20 Million; with the UP and NS CEO's going for $14 Million.  I won't argue the difference between CEO's and minimum wage but I will question how Foote is $6 million 'better' than the UP and NS CEO's?

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Posted by Euclid on Tuesday, July 19, 2022 1:05 PM

Maybe CSX just believes Foote is worth that much more than the UP and NS CEOs.  

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Posted by abdkl on Tuesday, July 19, 2022 1:39 PM

Today's News Wire:

CEO outlines ongoing crew shortages, need for changes in jobs


https://www.trains.com/trn/news-reviews/news-wire/csxs-foote-blaming-psr-for-rail-problems-is-nonsense/

 


Mr. Foote's statements, within this article, actually explains that PSR via CSX's upper management IS key to the rail problem. He states that presumably under his watch, [his] CSX management cut about 1,000 jobs. After being able to recall ~800 and have hired another ~2,000. "… and we’re going backwards,” Foote said."  

So if PSR implementation, layoffs & work rule changes, isn't the problem why hasn't CSX management responded by offering positions that will attract and keep capable people?

Management should know their employees and customers. IF they are failing to address either then Management is failing. IF they are failing on both fronts they HAVE failed!

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Posted by BaltACD on Tuesday, July 19, 2022 2:15 PM

Euclid
Maybe CSX just believes Foote is worth that much more than the UP and NS CEOs.  

Which really means all three boards are idiots.

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Posted by jeffhergert on Tuesday, July 19, 2022 2:31 PM

The figures posted are their whole compensation package.  Their actual wages are probably a lot less.  (A few UP CEOs back was the last time I checked, but the actual wage was 2 or 3 million dollars.  The add-ons and bonuses was worth about two or three times their listed wage.  A lot of those extras are to give them, so it's said, "skin" in the game.  Also those extras are non taxable or taxed at a lessor rate than wages are.

It could simply be that the way the packages are done is why CSX comes out better.

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Posted by charlie hebdo on Tuesday, July 19, 2022 3:36 PM

Euclid

 

 
Ulrich

 

 
Euclid
I have never suggested or believed that there is any control that determines how large or small the gap between highest and lowest wage should be.  But many people here and elsewhere complain that this gap is too large.  So since they know this, they ought to be able to explain how large is too large.  Of course everyone has the freedom to start their own company and make all pay equal from top to bottom.  Actually I don’t expect people to answer these questions. The answer is in their refusal to answer.  It works like a charm. 
 

 

 

 

The control is supply and demand. You and I might not believe that an entry level NHL hockey player should make more than an experienced cancer researcher.. but the market says otherwise. Diddo for the spread between what the CEO gets and what the worker bees get.. the market is the mechanism that controls the spread. 

 

 

 

So then why do some people cite a difference between the top and bottom wage as being unfair?  They always refuse to answer that question. 
 

1. Perhaps you need to consider that the so-called market* is the best or fair or only way to rationalize and distribute everything?  What's good for corn, wheat and soybeans isn't necessarily ideal for humans.

2. Balt calculated the yearly gross earnings of a minimum wage worker.  But let us look at a $15.00/hour worker. He or she grosses ~$30k. Is a CEO making 100 or 600 or even 800 times that actually worth that?  How?

* Let's not even bring in  sophisticated market concepts like elasticity

 

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Posted by tree68 on Tuesday, July 19, 2022 3:39 PM

zugmann
Who cited that?

I mentioned it.

The key thing with that is not the level of compensation as such.  I've seen it mentioned in the past in various places that the concern is the widening gap between the average worker and the top executives.

One might think that wage increases between top and bottom would be relatively linear - ie, my pay goes up 5%, the CEO's pay goes up 5%.  I'm left with the impression that some folks feel that such hasn't been the case.

Others might feel that it should be on a decreasing scale - I get 5%, the CEO gets 2%.

When I was in USAF, there was a huge readjustment in pay (late 1960's).  A basic airman (E1) went from about $109 per month to around $235 a month - better than a 100% increase.  In fact, an E1's monthly pay was now more than an E4 would have been making, had their pay not also been increased.  When you got to O10 (general), the increase was well less than 100%.

A variable with the CEO's pay, however, has been mergers and consolidations, which obviously increase the CEO's responsibilities.

It would take a lot of research and interpretation to sort it out.

Food for discussion.

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Posted by adkrr64 on Tuesday, July 19, 2022 3:41 PM

charlie hebdo
Is a CEO making 100 or 600 or even 800 times that actually worth that?  How?

Because a CEO sometimes make decisions that can have 100 or 600 or even 800 times greater impact on performance or future of the entire company?

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Posted by BaltACD on Tuesday, July 19, 2022 3:56 PM

adkrr64
 
charlie hebdo
Is a CEO making 100 or 600 or even 800 times that actually worth that?  How? 

Because a CEO sometimes make decisions that can have 100 or 600 or even 800 times greater impact on performance or future of the entire company?

And generally the ones that make BAD decisions, jump ship with a Golden Parachute worth several years of their inflated salary & options from the time before they put the company in distress and had a financially fatal effect on all the employees of the company.

Someone being rewarded for failure doesn't leave a good taste for the employees that are disadvantaged.

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Posted by charlie hebdo on Tuesday, July 19, 2022 4:05 PM

adkrr64

 

 
charlie hebdo
Is a CEO making 100 or 600 or even 800 times that actually worth that?  How?

 

Because a CEO sometimes make decisions that can have 100 or 600 or even 800 times greater impact on performance or future of the entire company?

 

Evidence?  And as Balt points out, where are the severely negative consequences for terrible decisions?  Seldom on CEOs, often seen in paycuts or RIFs for a company's workforce.

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Posted by Euclid on Tuesday, July 19, 2022 4:14 PM

charlie hebdo

 

 
Euclid

 

 
Ulrich

 

 
Euclid
I have never suggested or believed that there is any control that determines how large or small the gap between highest and lowest wage should be.  But many people here and elsewhere complain that this gap is too large.  So since they know this, they ought to be able to explain how large is too large.  Of course everyone has the freedom to start their own company and make all pay equal from top to bottom.  Actually I don’t expect people to answer these questions. The answer is in their refusal to answer.  It works like a charm. 
 

 

 

 

The control is supply and demand. You and I might not believe that an entry level NHL hockey player should make more than an experienced cancer researcher.. but the market says otherwise. Diddo for the spread between what the CEO gets and what the worker bees get.. the market is the mechanism that controls the spread. 

 

 

 

So then why do some people cite a difference between the top and bottom wage as being unfair?  They always refuse to answer that question. 
 

 

 

1. Perhaps you need to consider that the so-called market* is the best or fair or only way to rationalize and distribute everything?  What's good for corn, wheat and soybeans isn't necessarily ideal for humans.

2. Balt calculated the yearly gross earnings of a minimum wage worker.  But let us look at a $15.00/hour worker. He or she grosses ~$30k. Is a CEO making 100 or 600 or even 800 times that actually worth that?  How?

* Let's not even bring in  sophisticated market concepts like elasticity

 

 

What is the point of comparing a $15/hr. worker’s productivity to the productivity of a CEO being paid 800 times more?  The question implies that the pay difference is unfair.  And this argument is always made under the premise that the CEO is being paid too much, and that this is taking away money that is deserved by the workers.  The whole argument is based on the distribution of business revenue based on need.  Any company is free to do that if they prefer.  But this is always coupled with the belief that companies should be mandated to do this rather than just being allowed to do it. 
 
To your questions, I would say the high pay for the CEO is worth it if the company believes it is.  When you ask “how?” it is worth it, the reason can be anything that the company decides.  They are the ones paying it, so they must have a reason for how much they are paying.  Why should their reason not be good enough?
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Posted by Ulrich on Tuesday, July 19, 2022 4:32 PM

As much as is possible, everyone's pay should be tied to performance, with performance criteria clearly spelled out for each position. Certainly no management bonuses should be paid where the Company has performed under par or has downsized its workforce to trim costs. No golden parachutes for anyone.. 

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Posted by charlie hebdo on Tuesday, July 19, 2022 4:36 PM

Euclid: Your entire thesis is circular and reveals some degree of naivete or ignorance on your part concerning the corporate world. Did you ever work in management in a large business?

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Posted by abdkl on Tuesday, July 19, 2022 4:44 PM

And The "Company" is the Board of Directors who decide the CEO raise (or bonus, or …). The subsequent impact on the people making up the Company will take the hit on bad decisions and only get a trickle, if any, should there be a good one. 

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Posted by BaltACD on Tuesday, July 19, 2022 4:49 PM

Ulrich
As much as is possible, everyone's pay should be tied to performance, with performance criteria clearly spelled out for each position. Certainly no management bonuses should be paid where the Company has performed under par or has downsized its workforce to trim costs. No golden parachutes for anyone.. 

When I was non-contract (official) with Chessie System and following through with CSX - there were no levels of remuneration that were established for individual positions throughout the system.  All increases came about through the Performance Review type process.  The head of whatever organization would undertake a performance review of all his subordinates - ostensibly a 'fair' evaluation against defined metrics.  One thing that I observed through this process was that if, say, the head of a department was 'down graded' by his superior - all those under that supervisior would be downgraded without regard to any individual performance.  

When I was initially 'promoted' to non-contract status, I was told I was getting a 15% increase over what I was making in my contract position with by new non-contract rate being $700 a month.  When I got my W-2 for the year I was promoted it read about $8800.  Obviously what I had been earning during my period as a contract employee exceeded what I was being paid in my non-contract position.

Employee compensation, outside of Union Contracts, is a real den of inequity.

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