Gains in Wages Expected to Give Economy a Lift
- Thread starter charrison
- Start date
I was shocked as sh!t last Thursday when the owner of the company awarded me a 7 percent pay increase.
Hayabusa Rider
Admin Emeritus & Elite Member
- Jan 26, 2000
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From the same article
"The wage gains have not been enough to overcome the economy's problems, however. Many families still have less income than they did a year ago because companies have reduced their workers' hours, and health care costs have risen rapidly. But economists say that the wage raises have provided a buffer, allowing consumer spending to continue rising every quarter for the last 12 years, according to the Commerce Department."
Not to rain on your parade, but that section gives a rather skewed perspective of the article. Yes it is good news, however the situation is more complex, which is why I posted the above. Not knocking ya (you did link it after all). Some things better, some things worse. Over all I believe things headed in the right direction.
"The wage gains have not been enough to overcome the economy's problems, however. Many families still have less income than they did a year ago because companies have reduced their workers' hours, and health care costs have risen rapidly. But economists say that the wage raises have provided a buffer, allowing consumer spending to continue rising every quarter for the last 12 years, according to the Commerce Department."
Not to rain on your parade, but that section gives a rather skewed perspective of the article. Yes it is good news, however the situation is more complex, which is why I posted the above. Not knocking ya (you did link it after all). Some things better, some things worse. Over all I believe things headed in the right direction.
Yes, congrats BO.
I have first hand knowledge from multiple people of an even more ominous situation.
A minimum of 10 to 30% increase in the monthly cost out of pocket for Health Insurance which clearly wiped out any pay raises which normally run anywhere from 3 to 7%.
You can clearly see that many if not most are actually enduring a pay CUT.
Very sad to see such a deceptive posting.
I got a similar size raise.
And Dave my benefits are not being cut. Actually there is a decent chance my benefits will get better this year as well.
Same here. I work for a major corporation. They just gave managers raise guidelines for 2004. Total 3% for annual raises and promotions together. This came from our national survey of wages. Employee cost for health insurance is increasing an average of 11%.
Thanks.
In my case, the health insurance isn't really an issue. Because I'm covered under Tri-Care at $130 per quarter as one of the bennies for doing 20 with Uncle Sugar, I declined the inferior company plan. In one respect, I see your point. Without Tri-Care, my group health insurance coverage would most likely be around $150 per month through the HMO.
The company HMO is smart too. They send reps out every quarter to give risk management classes, wellness classes and other small bits of instruction to save them money.
How whacked. Who said anything about benefits going down? Try reading and thinking, dasm.
To keep same benefits have to shell out more out of pocket, far more than any raise, therefore a PAY CUT !!!!
I must not be speaking English.
Exactly Ldir, thanks for your post of the REAL World conditions. Sorry you had to spell it out. Apparently we should all move to San Antonio Texas as things must be great there.
Edit: It is very nice along RiverWalk in downtown San Antonio, great place to get a steak too.
Edited again, some Companies are increasing Employee Benefit out of Pocket expenses 40%.
I will be getting a 2% wage increase. The current inflation rate is about 2.4%.
My benefits will cost me about 2% more of my wages per year now.
Funny how some of my co-workers are thinking that they are getting a pay raise.
EDIT:
BUSH is winning.
My benefits will cost me about 2% more of my wages per year now.
Funny how some of my co-workers are thinking that they are getting a pay raise.
EDIT:
BUSH is winning.
From an article I read in MSN Money.
"Manufacturing jobs in the United States pay an average of $650 a week or about $34,000 a year, according to outplacement firm Challenger, Gray & Christmas. Retail jobs, in contrast, pay an average of $373 a week, or about $19,000 a year. Even as the recovery starts to pick up speed, the U.S. economy is shedding $34,000-a-year jobs and replacing them with $19,000-a-year jobs."
---
"For example, 56% of U.S. employers raised healthcare premiums, deductibles or co-pays in the last year, according to Watson Wyatt Worldwide. And 18% now charge an extra $100 a year for family coverage if the employee?s working spouse declines coverage from his or her own employer.
Sometimes, the squeeze is even more direct. In the last 12 months, 12% of U.S. employers simply reduced benefits. Another 6% plan to do so next year.
It?s not like U.S. companies are raising salaries to compensate for these benefit reductions or to make up for the costs they?re passing along to employees. Raises were below 4% in the past year, the third year in a row they?ve been below 4% and the lowest rate in 30 years, according to Hewitt Associates."
You can read the entire article at the link below.
The threat of the job-is-worth-less recovery
edit
The company I work for kept raises under 3% this year and charges for spouses who decline coverage and use our coverage as primary went from $15 per week up to $30 per week. While the average middle management raise was just under $30. Net loss on benefits alone was $10 for these employees and for them as well as those who don't fit that description copays and deductibles went up so the "raise" was really a pay cut across the board when you factor in all the other changes.
"Manufacturing jobs in the United States pay an average of $650 a week or about $34,000 a year, according to outplacement firm Challenger, Gray & Christmas. Retail jobs, in contrast, pay an average of $373 a week, or about $19,000 a year. Even as the recovery starts to pick up speed, the U.S. economy is shedding $34,000-a-year jobs and replacing them with $19,000-a-year jobs."
---
"For example, 56% of U.S. employers raised healthcare premiums, deductibles or co-pays in the last year, according to Watson Wyatt Worldwide. And 18% now charge an extra $100 a year for family coverage if the employee?s working spouse declines coverage from his or her own employer.
Sometimes, the squeeze is even more direct. In the last 12 months, 12% of U.S. employers simply reduced benefits. Another 6% plan to do so next year.
It?s not like U.S. companies are raising salaries to compensate for these benefit reductions or to make up for the costs they?re passing along to employees. Raises were below 4% in the past year, the third year in a row they?ve been below 4% and the lowest rate in 30 years, according to Hewitt Associates."
You can read the entire article at the link below.
The threat of the job-is-worth-less recovery
edit
The company I work for kept raises under 3% this year and charges for spouses who decline coverage and use our coverage as primary went from $15 per week up to $30 per week. While the average middle management raise was just under $30. Net loss on benefits alone was $10 for these employees and for them as well as those who don't fit that description copays and deductibles went up so the "raise" was really a pay cut across the board when you factor in all the other changes.
CADsortaGUY
Lifer
Health Insurance costs are going up - yes.
Wages are going up - Yes
A company giving a raise but then healtcare costs being raised BY THE PROVIDER does not equal a PAY CUT. Do you not understand that these are separate issues? Cripes I swear sometimes people look at things WAY too negatively and seek out the negative. The worker is getting a pay increase from the company. Health Insurance companies are raising rates. Two separate things. Now if you'd argue that overall household take home pay is suffering then I might be inclined to agree, but for you to say it is a pay cut is just plain false.
CkG
CAD:
Wouldn't it depend on the numbers? If you get a 5% raise on a base $30,000 salary, that would be a $1500 wage rise. However, if your insurance premiums go up $100 per month (ours recently went up $90/mo), and you've also had a reduction in, say, OT, and/or weekly Regular Hours, you net pay could be lower quite easily. I think the real point here is that health care costs must be contained and, to me, this points to the necessity of a national health care system. Notice that with the exception of the war, this is THE major difference between Dems and Bush.
I suspect your views may be different on the importance of implementing national health care, though you'll trust DOD to win friends and influence people around the world.
-Robert
Wouldn't it depend on the numbers? If you get a 5% raise on a base $30,000 salary, that would be a $1500 wage rise. However, if your insurance premiums go up $100 per month (ours recently went up $90/mo), and you've also had a reduction in, say, OT, and/or weekly Regular Hours, you net pay could be lower quite easily. I think the real point here is that health care costs must be contained and, to me, this points to the necessity of a national health care system. Notice that with the exception of the war, this is THE major difference between Dems and Bush.
I suspect your views may be different on the importance of implementing national health care, though you'll trust DOD to win friends and influence people around the world.
-Robert
Call it whatever you want I don't care, it is just clear pay is going down , not up like the Title of this thread implies.
CADsortaGUY
Lifer
Originally posted by: chess9
CAD:
Wouldn't it depend on the numbers? If you get a 5% raise on a base $30,000 salary, that would be a $1500 wage rise. However, if your insurance premiums go up $100 per month (ours recently went up $90/mo), and you've also had a reduction in, say, OT, and/or weekly Regular Hours, you net pay could be lower quite easily. I think the real point here is that health care costs must be contained and, to me, this points to the necessity of a national health care system. Notice that with the exception of the war, this is THE major difference between Dems and Bush.
I suspect your views may be different on the importance of implementing national health care, though you'll trust DOD to win friends and influence people around the world.
-Robert
No - the exact numbers don't matter. Wages and insurance premiums aren't decided by the employer - only wages are. Now sure there can be some negotiation on how much the employer pays of the premium but for someone to call it a pay-cut is a lie.
I've stated my feelings about UHC before and I think they are middle of the road and would be a sort of compromise between the all or none stances we have today. However, there will be privatization of it
Healtcare is a big issue - but going to an all encompasing UHC would spell disaster for the US. People bitch about HMOs you haven't seen any thing yet. Just wait until the gov't gets to control your coverage. It'd be a mess. My "plan" would give a base level of care/coverage but with privatized options for further coverage. Also there would be a healthy dose of MSA(Medical Savings Account) involved. I think we need to go back towards a pay per treatment style healthcare system - not all the way back to it - but somewhat towards that model. Base level care for Children and Seniors. All other's will have MSAs or private healthcare options available through the gov't or Private Insurance. Now, ofcourse I have few in depth details and I'm sure someone will come up with some wild ass scenario where it would suck for someone under "my" plan, but we need to be honest - there isn't a "perfect" way to have healthcare and some people will fall throught the proverbial cracks no matter what. What we need is a way for everyone to have some sort of base care first - then work from there.CkG
It would be a wash only if the pay increases matched the Health Care increases and clearly that is not the case by a loooong shot.
CADsortaGUY
Lifer
There is a difference between "wages" and health care costs. Wages have infact gone up - just like the title says. For you to spin "wages" into meaning take home pay is misleading. Healthcare costs are an expense - not a wage.
CkG
Red Dawn
Elite Member
- Jun 4, 2001
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OK how about this. With the Increase of Health Cost being passed on to the Employee that is higher than the wage increase the Employee recieves his compensation for the work he does is lower. Benefits and Wages are compensation for work done and are not an entitlement granted to the worker by the Employer.
Whatever you say. Wages generally go up every year at least by 3% but the Title is implying there is some Magical lift all of a sudden expected by any kind of gain. Most in here are pointing out the fact that how can those "gains" be expected to "lift" the Economy on it's own merits when income has clearly gone down.
Edit: No Wonder the Title of the Article is whacked. Two Journalists from the NY Times. 2 Journalists working on the same article and they still can't get it right.
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