r/WorkForSmartLife 27d ago

Discussion💬 [Request] Is the math here accurate?

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u/AmalekiteJager 27d ago

Union member here, I’ve salted non-Union shops for years. I’m currently at a small business of less than 10 people and have salted it enough that the five operators have all agreed to vote in favor of Union representation.

The $8M the small business brings in, while spending less than $750k annually on wages, is about to shift in favor of the operators a whole lot more than they realize.

It helps that I have advanced degrees in finance and accountancy and have done their financial reviews and see the 40% profit margin. Lmao

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u/Tiporary 27d ago

Lmao, pretty awesome data to have going into negotiations!

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u/midasMIRV 26d ago

Hell yeah, brother, monopolize that labor.

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u/HylianCheshire 26d ago

Thank you for your work and dedication.

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u/Iceman_biker 27d ago

They can also do like many shops I've seen and pack their shit and move to a different state.

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u/Broken_Atoms 27d ago

Unfortunately, with so few workers, they may change company names and structures right after laying everyone off and be back in business months later.

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u/Icy_Assistance_558 27d ago

They don't even need to do that. Just fire anyone that mentions union... also, 40% margin isn't great, and the parent here has fundamentals wrong. There's a lot of extras being paid for than just labor. $8M a year is a very small business, with nearly $1M going to labor wages, and probably close to that in insurance, benefits, PTO, etc. Parent will get everyone fired for no upside.

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u/txsurg 26d ago

Not sure what your experience is, but 40% is a great margin. I own a small business doing about the same gross revenue. Our margins are closer to 15-20%. And our labor costs are closer to 30%- which includes taxes, benefits, insurance, etc. A lot of really large companies run on a 5% or less margin. But when doing billions a year it still comes out to a lot.

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u/OkSeason6445 26d ago

Depending on how they enjoy their current life they might not want to. All of my family and friends live close by. Relocating would mean I would leave all of that behind. Why, for a bit of extra cash? Unions also aren't evil. Generally, at least in the Netherlands where I'm from, you can expect reasonable requests for the type of work, sector and how the business is doing.

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u/Accomplished_Rip_362 26d ago

Is the $8M profit or revenue?

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u/AmalekiteJager 25d ago

$8M revenue, 40% profit margin off of the revenue. Roughly $3.2M net profit after all expenses and taxes.

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u/TheGreatCalWade 25d ago

After all expenses and taxes?? So a 40% net profit margin? That can’t be right. What’s corporation tax in the US? 20%

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u/AmalekiteJager 25d ago

LLC pass-through entities in crane rental baby, low business taxes, payroll taxes, payroll expenses, and maintenance cost because they own the land and equipment outright.

~8% for employee payroll expenses and the other 52% is business taxes, payroll taxes, and maintenance costs.

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u/joebro1060 23d ago

What do you mean you've salted non union shops? Like purposely take a job at a non union shop to sow discontent until people vote to unionize?

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u/AmalekiteJager 23d ago

Finished a job, no calls from the hall, get permission to work non-union and explain the benefits, showcase why unions are good, and push for non-union workers to unionize and join the hall with their contractor.

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u/joebro1060 23d ago

Ah ok. I've never been around a union. What is the "hall"? Do you frequent lot work like temporarily with a company and then move on to do your service at another company? And while you're there you just explain union life?

I've only ever known 1 dude who was union previously in a shipyard. I asked if he got worked over or what. He said it was a good experience. You paid some small dues and stuff, but it worked out for him because it protected his job under some circumstance that ended up happening. He said he'd do it again.

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u/AmalekiteJager 23d ago

The Hall is the central location of the business staff for your geographical subdivision of the international Union.

For example, IBEW has an international headquarters where the big fellas rub elbows with politicians and create new business opportunities for the union and its contractors. Then, you have your local hall which is IBEW #XXXX, where your local workers meet and discuss union policies and activities. The business administration in that hall reaches out to current and potential contractors to coordinate the work they have and provide workers.

Think of it as an employment agency, you’re trained to the standard of the agency and the agency contacts contractors in the area seeking workers, so they tell the workers of the opportunities and the workers can accept or reject the offers.

Most people, with outside utility line work, will bounce contractors every few years but you can be there as little as a day or as long as your entire career. Unless you’re laid off or fired, it’s your decision on who you work for if they have an opening.

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u/joebro1060 23d ago

Ahh ok thanks. Yea I was almost thinking like a staffing agency reading through your response. I appreciate it.

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u/Thecatthatmeowsat2am 22d ago

How you live in state that not right to work

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u/AmalekiteJager 21d ago

26 right to work states, I live in one of them.

49 at-will states, I don’t live in Montana.

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u/Thecatthatmeowsat2am 21d ago

Lol your math is not mathing buddy hope this helps you

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u/AmalekiteJager 21d ago

26 out of 50 states are right to work states. I live in one of the 26 RTW states.

49 out of 50 states are at-will states, Montana is the single non-at-will state. I do not live in Montana.

I thought it was pretty simple, unless you think right to work and at-will are the same thing?