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Old 04-15-2011, 11:30 AM   #31
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Default Re: 1 in 6 Americans Now Receive Gov't Assistance!

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Originally Posted by The Brandon Five View Post
The first citation relies on the second, which upon examination is clearly not a report about the wages for every job. It clearly states that the reduction from $9.75 to $8 in the packing department is an example.
Maybe we ought to be wondering why IKEA is cutting wages anywhere internally. Wouldn't that be the bigger question? Is it because they are losing money? It's hard to tell because they guard their figures closely. I did find this from 2006:

For the fiscal year ended Aug. 31, revenues rose 15%, to $17.7 billion. And although privately held Ikea guards profit figures as jealously as its recipe for Swedish meatballs, analyst Mattias Karlkjell of Stockholm's ABG Sundal Collier conservatively estimates Ikea's pretax operating profits at $1.7 billion. Ikea maintains these profits even while it cuts prices steadily. "Ikea's operating margins of approximately 10% are among the best in home furnishing," Karlkjell says. They also compare well with margins of 5% at Pier 1 Imports and 7.7% at Target, both competitors of Ikea in the U.S.

Ikea

I haven't heard anything about them being in trouble but I suppose it's possible.

If, in fact, they are NOT in trouble and profits are still good what's the excuse for lowering wages by almost 1/4th? Because they can? Because without a union and in a bad economy with a high jobless rate no one's going to protest - or outright just quit?

If that's the case - we truly ARE a third world country to places like Sweden who would never cut their own countrymen's salary or lower their benefits.

Why do we tolerate it when they, themselves, would not?
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Old 04-15-2011, 11:35 AM   #32
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Default Re: 1 in 6 Americans Now Receive Gov't Assistance!

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Not really, but an employee who is doing comparable work, should receive a comparable wage.. in this case the pay in the US should be on par with the workers in Sweden....
Not sure it's been shown yet that this isn't the case -- but one could make the same argument and conclude that the Swedish workers are overpaid, no?


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...In many occasions a decent wage, buys loyalty and dedication. If you do not pay a person a "reasonable wage", you often get the opposite.. it is the american way. There is always anecdotal evidence out there, but usually it does.

The right to a reasonable wage is based on the above, not sure where you are coming from, but a company like IKEA has tremendous profits and some should trickle down to the worker.. wihout the dedicated worker, then you produce crappy merchandise..
All of that speaks to business decisions -- not any inherent "rights"
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Old 04-15-2011, 11:43 AM   #33
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Default Re: 1 in 6 Americans Now Receive Gov't Assistance!

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Not sure it's been shown yet that this isn't the case -- but one could make the same argument and conclude that the Swedish workers are overpaid, no?

All of that speaks to business decisions -- not any inherent "rights"
$8.00 per hour is hardly a decent wage.. but different strokes. At first glance it seems as though IKEA is treating their american workers like a third world country....

If that sits ok with you, so be it.. head out to Stoughton, big sale going on.
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Old 04-15-2011, 11:54 AM   #34
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You cannot tell that from this article, it states starting wage.. you really cannot assume either way..
And yet you are propagating the idea that everyone makes $8/hr all over the forum. Does the starting wage apply for one's entire tenure?

We have no idea what workers in that plant are paid.
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Old 04-15-2011, 12:34 PM   #35
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Default Re: 1 in 6 Americans Now Receive Gov't Assistance!

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$8.00 per hour is hardly a decent wage.. but different strokes. At first glance it seems as though IKEA is treating their american workers like a third world country....

If that sits ok with you, so be it.. head out to Stoughton, big sale going on.
You're sure putting a lot of words in my mouth.

What's a "decent" wage? What kind of skills does the person earning it offer to a potential employer?

Funny, when big companies like Ikea and mcDonalds offer thousands of jobs, they're criticized for not offering good enough jobs. When companies move their operations offshore, though, they're criticized for that, too.

Could it be that low wages are in any way the fault of the people earning them? Maybe, just maybe, they don't offer enough in the way of their capabilities to warrant higher pay?

As for Stoughton and Ikea, I live in LA... and not sure if I've ever shopped at Ikea. But as long as they treat their employees ok, I don't harbor any grudges against the company simply because its starting wage at some positions is $8
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Old 04-15-2011, 12:50 PM   #36
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Default Re: 1 in 6 Americans Now Receive Gov't Assistance!

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You're sure putting a lot of words in my mouth.

What's a "decent" wage? What kind of skills does the person earning it offer to a potential employer?

Funny, when big companies like Ikea and mcDonalds offer thousands of jobs, they're criticized for not offering good enough jobs. When companies move their operations offshore, though, they're criticized for that, too.

Could it be that low wages are in any way the fault of the people earning them? Maybe, just maybe, they don't offer enough in the way of their capabilities to warrant higher pay?

As for Stoughton and Ikea, I live in LA... and not sure if I've ever shopped at Ikea. But as long as they treat their employees ok, I don't harbor any grudges against the company simply because its starting wage at some positions is $8
Didn't you say that you have never been in a Wal Mart for much the same reason??

Capabilities is not known, all that we know is that the starting wage in the US is $8 and Sweden $19 per hour.. are the Swedes 2.5 times more qualified??? I doubt it, profit margin must be dramatically different in Va. as compared to Sweden as their are low wages and no transportation across the pond..

From the handbook the IKEA Way..

://www.ikea.com/ms/en_US/about_ikea/pdf/SCGlobal_IWAYSTDVers4.pdf

Quote:
13.2 Collective bargaining
The IKEA supplier shall not prevent workers from exercising collective bargaining activities.
Clarifications:
• Collective bargaining is defined as negotiations between employer and worker representatives (freely and independently chosen by the workers).
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Old 04-15-2011, 01:36 PM   #37
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Didn't you say that you have never been in a Wal Mart for much the same reason??

Capabilities is not known, all that we know is that the starting wage in the US is $8 and Sweden $19 per hour.. are the Swedes 2.5 times more qualified??? I doubt it, profit margin must be dramatically different in Va. as compared to Sweden as their are low wages and no transportation across the pond..

From the handbook the IKEA Way..

://www.ikea.com/ms/en_US/about_ikea/pdf/SCGlobal_IWAYSTDVers4.pdf
Maybe cost of living and/or market wages are simply higher -- assuming, of course, the jobs being compared are the same.

As for profit margin, great -- maybe they'll keep providing jobs here, and other companies will as well. That puts more people to work and in turn increases wages.

re WMT, I've never shopped there for a variety of reasons. I don't inherently dislike Walmart, but I also have no reason to go there -- plus, there isn't one particularly close to me, and I've never been in the mindset to go out of my way to save a couple bucks (especially since that has involved LA traffic for the last several yrs).
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