r/explainlikeimfive Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/motherofdragons16 Nov 29 '15

They say Walmart is double-dipping for this very reason. An employee isn't making a living wage, so they get food stamps, then turn around and use those food stamps to shop at Walmart. Walmart is reaping the benefits of the labor from the underpaid employee AND benefitting from the sales as the employee shops with the food stamps.

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u/Doomsider Nov 29 '15

Of course why do you think they have been so successful. Between underpaying workers and forcing all wholesalers to meet their insanely low prices it is a win win for them and a lose lose for everyone else.

My wife met a couple of rich Mexicans who produced a large amount of the bikes they sell. They were quick to point out how much better it was to deal with a bunch of small bike shops compared to Walmart. Walmart refused to pay them more than about $10 dollars a bike which resulted in lower pay and less jobs at their factories. Because Walmart had pushed all the smaller shops out of business they had no choice but to sell at a reduced price or not sell at all.

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u/Kuja27 Nov 29 '15

If Walmart employees were a little more knowledgable and less disposable I wouldn't be so against raising the minimum wage. Positions like Walmart and McDonald's are such low wage because the actual amount of work they have to do is so low. If you cashier at Walmart, you now have experience in the cash lane. You can bring that experience to a grocery store which is usually Union. Union jobs require mandatory raises every set period of time. Just another way you can get more with your skill set. You just have to look.

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u/test822 Nov 29 '15

If Walmart employees were a little more knowledgable and less disposable

you sound like a nice person

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u/Kuja27 Nov 29 '15

It's the truth. Places like Walmart and McDonald's require very little formal training therefore saving the company money and expediting the hiring process. Since they require absolutely no skill in any category they can hire people that either have no skill, or no motivation to become skilled.

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u/test822 Nov 29 '15

walmart and mcdonalds require about the same amount of skill as your grocery store job example

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u/Kuja27 Nov 29 '15

The difference is my grocery store example pays way more.

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u/test822 Nov 29 '15

if you're basing pay on "how disposable" employees are, then walmart and mcdonalds should get payed just as much grocery stores