Post by HRM Resident Post by Wayne Hines
Now, that payroll has gone to $120,000 and the benefits from 10 to 12
thousand, leaving the owner with only $38,000. And that's just for the
people who had been making minimum wage. If that's your business, how do
you get back that $22,000?
Your numbers add up, and for a small business you make a point.
The driving force behind this current move is Ron Joyce Jr and his
wife Jeri-Lyn. They are the respective married-to-each-other
grandchildren of the founders. As of 2017, Ron Joyce Jr is worth an
estimated USD $1.4 billion according to Forbes.
I really don't see how cutting a few dollars a day from minimum
wage workers is necessary for a man worth USD $1.4 billion. Reminds
me of K C Irving who made billions off the resources in NB, and then
ran off to Bermuda so he didn't have to give a cent in taxes back to
the country who made him a billionaire.
The article suggested the franchise owners motivation was for feeling
pinched and not being allowed to raise prices (though there's some
finger pointing up and down). How does franchising work in this case?
Does the franchise pay Tim Hortons in proportion to their profits or at
a fixed rate?
Whatever the justification, sounds like wage theft to me. You're talking
about breaks at work being unpaid. So a person taking a break during her
shift has to clock out and then back in again so she's not paid that
time? It's not like she's gone home or to the movies on her break. I
call that unpaid time, i.e. wage theft.
The lesson here, I think, is for consumers to be less cautious and seek
out independently businesses, where they exist, rather than feeding all
this money into companies with this kind of market power. We know these
chains depend on us feeling more safe and comfortable with these names
we've heard of or seen advertised on tv, but let's be more conscious
ourselves of the problems caused this way. Hey, most of us have smart
phones, so we can look up store reviews online if we're unsure of a
place. Wouldn't it be neat if there were fewer Tim Hortons and a few
more coffee/donut places unique to whatever area they are in? Without
the larger franchising entity lording over each location then at least
you get local flexibility in adjusting to the higher wages. Also, and
maybe this is farfetched, I don't know, but you could imagine the
possibility of shared ownership or worker coops arising moreso than when
there is the corporate behemoth ultimately in charge.