Minimum wage

Whip for the poor: minimum wage

The minimum wage does not help the poor - In the past, it has been an instrument of racial segregation, and those who are most harmed are those it is supposed to help. By raising the minimum wage, a politician does not think of the "good of the poor," but only of his own electoral gain.

In the name of the law: stop working!

On the way to the subway to work, a homeless man came to me and said to me: "Hi, what am I going to tell you, I'm surviving under the stars and I could use a crumb."

I gave him a meal voucher and told him I would be happy to answer a few questions:

Why don't you work?

Well, until October, I worked for a smaller company. In black. I received 5 a month and they let me sleep in the warehouse. They gave me a bed there and I was like a king. Then, unfortunately, the inspection came and the company was closed down to employ people illegally. There were about 500 homeless people like me. So we've been on the streets since November.

Do you get a living wage?

Well, when I lost my job, I applied right away. Until now, they have been tossing me like a hot potato in the offices and sending me to another and another office, so I didn't get a penny from the state.

It's absurd: you work, you get pretty good, then you come and it will destroy his life. If there was no minimum wage, it would all be legal - unfortunately it is not so at present.

Loss of official power

People often say that "an increase in salary by 1150 crowns will not ruin the employer." But let's look at it from a higher perspective:

Have me cleaning agencywhich employs 150 cleaners for 12200 crowns a month (ie 16 crowns is a super-gross salary = what the employer pays for the employee, ie the cost of work). Although they have a contract written that they work 348 hours, they have a good employer and often let them go home early. The employees have a great party. The business is booming.

The employer pays 16 X 348 per month for these cleaners = 2 crowns. Its other costs are 200 crowns per month. This gives some CZK 000 monthly costs.

Its income is CZK 2. So the employer earns CZK 200 a month.

But then he will come state and before the election will increase the minimum wage for all by 1150 CZK - in reality, however, it is a higher increase, because labor costs will increase by 1541 CZK (1150 X 1,34).

Costs to clean him will increase by CZK 231.

So all of a sudden because of the government CZK 31 in loss - has 3 options ahead of him:

  1. to leave, dismiss everyone and earn his own money as a regular employee, where he would receive a salary of CZK 80 per month thanks to his managerial skills,
  2. continue, but hire cleaners illegally,
  3. Some lay off and increase the price for their suppliers (then, of course, they will have fewer orders).

How many cleaners do they have to release? Well, ideally enough to have a profit of at least the 80 CZK it offers him in a private company: 000 as a possible earnings + 80 loss = 000 crowns, which he must save in order for his business to pay off.

Divide this number by the cost of labor per employee (17 889) - ie 111 150/17 889. In order for a business to pay off, he must throw away at least 7 cleaners.

And here I will link to other sources that discourage the minimum wage - the 7 cleaners will be looking for work. Either:

  1. they will find an employer who can afford them. But there won't be many like that. On the contrary, everyone will be fired.
  2. they start working illegally.

The cleaning lady would easily work for her original salary, but the state forbids her from paying employers.

Disposal in one step

In a single step - by raising the minimum wage - the state will either deprive people of their jobs directly, or liquidate someone's business, or raise prices for everyone - most likely a combination of all options.

And all because of just a few electoral votes. People on the margins of society will thus be even more ostracized, and the social inclusion of excluded groups will be even more challenging.

But who cares when the poor can win the minimum wage?