[raydan]

Lemmy Lemmy:

Of course, but there's a TON of research that supports the position that the more you're paid, the better job you'll do. The single biggest factor in improving workers' marginal revenue products of labour is to increase their wage. In fact, I read a really interesting paper a couple of years ago about the trade-off between sleep and salary. There's a measurable substitution effect. People will give up sleep for work as pay increases.

It's not surprising that you attract the sort of hard-ons that would fart on someone's entre when you offer minimum wage for those jobs.

If fast food joints started paying decent salaries, they probably couldn't compete.
Not a lot of people would be willing to pay 8$ for a Big Mac or 25$ for a medium pizza. There will "always" be low paying jobs. Keeps the people that have limited skills working.

[Lemmy]

mtbr mtbr:

just because you get paid a low wage there is no excuse for acting like dickheads.

Of course not, but like I said, the low salary attracts lowlifes.

mtbr mtbr:

These 2 are in their 30s they've probably been fired from higher paying jobs because they're morons.

I'm not sure about the "higher paying" part, but I'd but my savings that these two peons have been fired before.

[poquas]

Lemmy Lemmy:

... but I'd but my savings that these two peons have been fired before.

...and will be many more times in the future. Pigs.

[Lemmy]

saturn_656 saturn_656:

So Domino's decides to pay higher wages, above and beyond wages offered by other companies, to aquire more capable employees.

As a result of this, Domino's pizzas increase in price signifigantly. People buy less Domino's and more Pizza Hut. Everyone is looking to save a buck, thats why Wal Mart does so well here.

Domino's goes out of business.

No, no, no. You're falling into a common fallacy in labour economics. Salaries are revenue neutral. The higher productivity at the higher salary like allows Dominos to sell their product more CHEAPLY, giving THEM the competitive advantage and forcing Pizza Hut to do better or go under. You're employing the same backwards logic that I hear all the time about pro sports: "Salaries are causing ticket prices to rise"...that's incorrect, it's the other way around (higher demand causes higher prices, allows higher salaries).

[Tricks]

Lemmy Lemmy:

Tricks Tricks:

It's hard to get shitty work when you press a button.

Is that how they crank out pizzas these days? I didn't know it was so capital-intensive an industry.

Was talking about auto-workers....

[saturn_656]

Lemmy Lemmy:

No, no, no. You're falling into a common fallacy in labour economics. Salaries are revenue neutral. The higher productivity at the higher salary like allows Dominos to sell their product more CHEAPLY, giving THEM the competitive advantage and forcing Pizza Hut to do better or go under. You're employing the same backwards logic that I hear all the time about pro sports: "Salaries are causing ticket prices to rise"...that's incorrect, it's the other way around (higher demand causes higher prices, allows higher salaries).

How is raising the wages of Domino's employees is going to result in an increased demand for Domino's pizza?

You think people are going to say "Hey, screw Pizza Hut and their $18.00 medium pizza, I'm going to Domino's to pay $25.00."

I wouldn't.

Domino's may try to pass off the higher price by saying their pizzas are better quality, but with food products like pizza, such claims are very subjective.

[Lemmy]

saturn_656 saturn_656:

How is raising the wages of Domino's employees is going to result in an increased demand for Domino's pizza?

Because the higher salaries attract better, more efficient workers and a better product.

saturn_656 saturn_656:

You think people are going to say "Hey, screw Pizza Hut and their $18.00 medium pizza, I'm going to Domino's to pay $25.00."

Maybe yes, maybe no. Maybe we're talking about an $18.00 pizza that's of poorer quality (and maybe farted on) versus a $19.00 'zza that's better tasting and safe.

saturn_656 saturn_656:

Domino's may try to pass off the higher price by saying their pizzas are better quality, but with food products like pizza, such claims are very subjective.

Well, I have the body of labour economics research on my side.

[saturn_656]

Lemmy Lemmy:

Because the higher salaries attract better, more efficient workers and a better product.

Explain to me how someone getting a raise of five dollars an hour is going to make a better tasting pizza using the exact same ingredients and following the same Domino's recipe?

Lemmy Lemmy:

Maybe yes, maybe no. Maybe we're talking about an $18.00 pizza that's of poorer quality (and maybe farted on) versus a $19.00 'zza that's better tasting and safe.

See above on how someone using the same ingredients and recipe is going to make a better pizza. Domino's HQ makes a blueprint for their food, standardizes the product across all the different locations. All fast food chains do this.

So whether its a Domino's in Austin, Texas or Dryden, Ontario, you're getting the same exact thing. Paying these guys more won't change the pizza blueprint or the ingredient list... it may help with employee retention, but that is about it.

saturn_656 saturn_656:

Well, I have the body of labour economics research on my side.

So how come none of the major pizza chains have done it? AFAIK none of the major chains pay their rank and file employees above and beyond the industry average.

[Lemmy]

It could be that the better pizza is in the process, not the ingredients. Maybe there's less waste? Maybe less theft? Maybe less bad press like in this case. Idiots can fuck up things by doing stupid shit like farting on the product when they should be doing something else to help the business earn money. It could be that 4 workers at $14/hr get more done than 5 workers at $12/hr. Maybe Dominoes paying the higher salary allows them to sell the $18.00 pizza you suggested for $15.00, not $19 or $26.

We haven't enough information on the pizza industry to put any numbers on this, so all we're left with is basic econmic theory: you pay a higher wage, you get higher Marginal Revenue Product of Labour.

[Pseudonym]

But who is to determine where the cutoff is on wages? Why not pay one worker $50/hour to do all the work? You have to have balance, and the best way to do that is to let the market determine the appropriate payrate. Idiots like these get prosecuted and fired. That should be deterrent enough.

[Lemmy]

Pseudonym Pseudonym:

But who is to determine where the cutoff is on wages? Why not pay one worker $50/hour to do all the work? You have to have balance, and the best way to do that is to let the market determine the appropriate payrate. Idiots like these get prosecuted and fired. That should be deterrent enough.

In some instances, one worker making $50/hr is preferrable. Sometimes one making $500/hr is optimal. We need more information to know what the optimal wage would be. Firing them means a) bad press, in this case, that'll cost the business for a long time; b) costs of retraining new people. It would have been better for Dominos to have attracted better people in the first place. The easiest way to have done that would have been to offer higher pay and collect more promising resumes.

[Pseudonym]

I am not contesting that higher wages attract better workers. I am arguing that it is not our role to tell the company what it pays its workers. Dominos may have made a bad decision here, and we can fairly criticize them on it, but I am wary of taking this too far and the usual governmental figures jumping on this to push their agenda with more interference in the free market.

[Lemmy]

Pseudonym Pseudonym:

I am not contesting that higher wages attract better workers. I am arguing that it is not our role to tell the company what it pays its workers. Dominos may have made a bad decision here, and we can fairly criticize them on it, but I am wary of taking this too far and the usual governmental figures jumping on this to push their agenda with more interference in the free market.

I agree. I never said anyone should tell anyone what to pay. In fact, I don't support minimum wage laws either. But when a company chooses to hire people on the cheap, they deserve EVERY fuck-up the peon gives them. When their underpaid workers slack off, steal and fart on pizzas, it's as much the owner/manager's fault.