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Milt, you are in the same or similar business. Would you pay that for a day laborer given my situation?
There's an market rate for everything and I just don't feel that's the correct rate. It has nothing to do with the person working hard or not or where they come from. |
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Lets say, We need two guys, two days, that's 864 bucks for hauling the tree limbs and leaves at your house. AS a contractor, I have to make money on top of that at 20-22%. Add in the dump fees, that's over 1500 bucks. That's just to haul trash. Most people will look elsewhere, that I know for sure. |
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We are not talking big C capitalists, we are referencing business people and their cost structure, which translates into being price and performance competitive. You see it in every industry - when the cost of labor and the headaches of relatively unskilled labor becomes problematic businesses invest in automation where applicable. The auto industry is a prime example. In my case, I cannot compete with Mexico in composite manufacturing on commercial end items. I simply cannot match at the price point (and quality, btw) that comes out of factories south of San Diego. Little to do with the Big C, rather regulations and federal mandates. I could write a book. I worked in precision agriculture in Washington State for two summers building a UAS service provider company, which we sold. I have written about this before. Labor used to be maybe 5th in the cost chain for the big tree and fruit "ranches" in the State, many billions of dollars in revenues. Rightly, managing the use of migrant workers, protecting them, became a reasonable aim. It worked. The migrants went from sleeping in tents to really modern facilities and working for a fair wage. Then they began to strike when the ranchers needed them the most: tree/fruit has a defined life span once it ripens. The workers had the advantage. What are the ranchers doing? Investing heavily, with the State, in automation. One rancher told me we had 25% of his crops at risks due to strikes. If automation ruins 5% of his yield with no risk, it is worth the investment. This back and forth has happened forever. |
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If they are overpaid find people who will do it for $15 per hour. I'm still confused why it's a big deal. Either you are wrong, and $20/hr is the real going rate, or you found someone who is hoping you're too lazy to find cheaper labor. |
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don't forget that the low wage rate unskilled free market has been affect by 2 things:
immigrants & govt. covid support payments is it still free? I'm not arguing against the latter BTW |
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There are a couple things to consider here. $20/hr is cheap when that's the only cost. Unfortunately it's not. Worker compensation rates vary by the trade, but any trade is 10x the cost of WC for an office worker. UI ins and SS cost a lot when you write the paycheck.
Actual direct costs range from 1.25 to 1.4 times the agreed pay rate. Indirect costs add more. And if you want to make a profit from labor performed using the fully burdened labor cost, you mark up from there. That's the number the customer sees (or doesn't see in a fixed price quote). When it came to trash, I found a call to 1 800 GOT-JUNK was my cheapest option. And that cost came out of my overhead. |
Yup. Supply and demand economics are beautiful when they benefit the owners and outrageous when they begin to favor the folks who actually do the work. Don't like food prices? They boycott food. Don't like labor rates? Don't hire. For a business, that means don't make money.
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1). Supply 2). Demand |
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No problem, I left it and didn't do anything. My Concrete guy didn't have the man power to do it and convinced me that the illegal's demand were way too high. He's pissed too. I don't need it gone that weekend but I like it gone. It was taken out this morning with a Bobcat into the roll off. Easy, took them an hour or two. Cleaned up before I got there. |
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$43k in California is probably barely a living wage - if you had 5 days of work every week. ...and if you're an illegal you don't. Their skill? Doing crap labor without complaining. Thats a skill I don't possess. Whats your suggestion here. How will you solve this problem for yourself? |
We pay our laborers $28.50 for pure labor, and $35.00 here in So Cal, we do not pay them direct. We also contract with their employer to haul our debris and trash. They supply most hand tools needed, as well as light power tools, chippers, etc. licensed, insured. Only way to go. No way are we hiring anyone off of the street. I have had the same two laborers on my projects for over 6 years now. They know what I want and what to alert me about. I tip them occasionally as well.
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43k a week? Starting teacher salary for LA is 53,000. How much is left after tax and union fees? Its pretty damn close to 43k. That's with a teaching credential. I can live 43k a year. And don't forget, many people do and they have pay taxes on top of that and mandatory auto insurance. The day laborer do not. Again, my opinion is that that rate is too high. I hear there's some type of building nearby where they hang out coaching the day laborers to band together asking for a certain wage. I got talking with a young men today installing solar on my job today. He's busting his ass on the roof carrying panels, drilling holes and pulling cables. I asked him on his water break about his pay. Yep, he's getting pay at 18.50 per hour. He's happy with a job where he can learn and move up, make more money. There's a problem if the illegals without skills are asking/making over 20 bucks while this hard working kid, assume he's an American, speaking without any accent is making less. But he saw the potential of knowledge and skill that will make him lots more. |
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