If you listen to the left wing they all believe in the wonders of socialism…and advocate for increased minimum wages, advocate for a “living wage” and constantly carp on about equality and equity.
How did that all work out for a company in the US when their brain dead CEO decided to pay everyone the same irrespective of skills?
When Dan Price, founder and CEO of the Seattle-based credit card payment processing firmGravity Payments, announced he was raising the company’s minimum salary to $US70,000 a year, he was met with overwhelming enthusiasm.
“Everyone start[ed] screaming and cheering and just going crazy,” Price told Business Insidershortly after he broke the news in April.
One employee told him the raise would allow him to fly his mum out from Puerto Rico to visit him in Seattle. Another said the raise would make it possible for him to raise a family with his wife. Overnight, Price became something of a folk hero — a small-business owner taking income inequality into his own hands.
But in the weeks since then, it’s become clear that not everyone is equally pleased. Among the critics? Some of Price’s own employees.
The New York Times reports that two of the company’s “most valued” members have left the company, “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.”
Maisey McMaster — once a big supporter of the plan — is one of the employees that quit. McMaster, 26, joined the company five years ago, eventually working her way up to financial manager. She put in long hours that “left little time for her husband and extended family,” the Times says, but she loved the “special culture” of the place.
But while she was initially on board, helping to calculate whether the company could afford to raise salaries so drastically (the plan is a minimum of $US70,000 over the course of three years), McMaster later began to have doubts.
“He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” she told the Times. A fairer plan, she told the paper, would give newer employees smaller increases, along with the chance to earn a more substantial raise with more experience.
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