Cost of self employement plus...

NCWayne

Well-known Member
I posted a reply eariler to a post from Gordo about unemployement. There were a few follow up responses to my post and they all made valid points.

Jocco made one good point about being self employeed or working for yourself being a choice, that's a given. He also made a good point abut these guys out there that want to get paid "good money" but don't want to work for it. The only thing is that he didn't take into account the ones of us that do work our a$$es off at whatever we do. True the attitude of the guys doing the work is a part of the proble, but the real problem is what gave them that atitude. I see a few ways the attitude is instilled in todays American worker. First is the parents that instill in their kids a sense of entitlement. Maybe they do it with a good intention of wanting the kid to have it easy and have things they didn't but ultimately it backfires. As these kids get older some of them discover the government handouts for those that are either 'born' too lazy to work or simply weren't taught to work and became lazy as a result. This situation then creates further problems. I realize this is kind of a general way of putting things but it covers alot of people I've run across over the years.

Then you get the real workers, or at least the ones that used to be. They went in every day, worked their a$$es off and got paid decent for it. They saw the cost of living increase 10%, their work load increase 5% and their pay increase 2%....and all of this happening as they see the upper management getting huge bonuses for doing nothing. Or consider the same scenerio but add in that this person worked at their job for 20 years only to come in one day and find that they have been replaced by some kid fresh out of colledge for half the pay or that their job just got sent overseas. Whatever the scenario there is simply no sense of stability or job security in todays workplace.

That said, while I don't condone 'goofing off' at work I can certainly understand the lack of enthusiasm or whatever from the employees when the company doesn't care about their employees, wants them to do twice the work for half the pay, etc, etc, etc.

That leads me to the self employeement part. True being self employeed is a choice but it also gives you an insite into the cost of doing business that others don't have. One reason Dad left the CAT dealership and went in for himself was he got tired of watching the customer being cheated. He'd do a job in half the "flat rate" time but the customer still got charged flat rate. Basically he could do twice the work, make the company twice the money, but he never saw any of the beneifit of doing it. What should he have done, sat down, goofed off, and done the work half as fast or just do what he knew and work at his regular pace???? While working for ourselves we've done jobs for the dealerships and seen our labor price doubled when billed to the customer. Now I undersand some markup for office expenses but to double the price of a $2500 job that the dealer had no part of doing beyond a phone call to us and maybe 15 min of paperwork is just wrong!

Now as far as the prices charged for work many people have no idea what it costs to do business. We currently get $85 an hour for our standard labor. The thing is out of that we have to cover the payrole for me an Dad, liability insurance to the tune of around $10,000 plus a year, overhead for power, supplies, etc, etc. If we're doing portable line boring then the rate goes to $100 an hour. The thing people don't realize is that this also covers hours spent sharpening tools bits when the job is over, the high cost of replacing carbide bits that get damaged, the cost of keeping the machine operational, the cost of materials to make special jigs, etc, etc, etc. In other words $85 or $100 an hour may sound like alot but when the end of the year rolls around you might actually make $40,000 give or take. The thing is you've earned every penny of it too because unlike the guys sitting in the air conditioned offices that have no clue and/or don't care who built that office, you've actually spent the summer outside working on equipment hot enough to burn you, the winter spent working on equipment freezing your a$$ off, and doing all of it in hopes that you actually get paid when the job is done.

In the end there aren't but two actual choices for work and nowdays neither is really all that good. Then there is the alternative to be lazy and either live off of the government or starve. Again neither is all that attractive to most of us that actually don't mind working for what we have...the problem is we're paying for the ones that do find being lazy attractive and the government, 'big business'. Basically the government and corprate America as a whole makes it possible because they will choose a lazy, uneducated person over the man with experience and way too many times because they can get the work done for alot less money while they continue to increase the cost of their product in order to line the pockets of the executives......

Again this is all kind of a general look at the way things are but I think you can get the pic. If corprate America would start paying their employees what they were worth (ie good off make min wage, work hard and make them money see some incentive to do it, etc), show that they care about their employees and give them the sense of security they once had, make pay increases at least in line with the cost of living, etc, etc, maybe things would get back to normal. Until then the 15% of us working are going to be stuck covering the other 80% that really don't care in order to line the pockets of the 5% "in charge"......
 
I agree, you could not have said it better. It is hard to find people who actually do good work and are reliable. Quality of work done now days is also hard to find. I am sure you would rather work on your equipment and know it is done right rather than have someone else do it.
If you are good at what you do, then I believe you deserve a decent wage. People need a good wage to survive these days. I raised both of my kids to do the best they can and to work hard,..fortunately both are doing well and are working at good jobs making decent money.
I fear that until good paying jobs return, this economy will be on a down turn for a while yet,especially here in Michigan. We can no longer rely on the "Big Three" to support this economy. We need more people like you to start buisness" here in this state to really get back on track.
Hope your buisness does well this year.
 
I think Wayne made some really good points. I think the economy has essentially collapsed here in Michigan. As long as we have to compete with foriegn labor wages that are basically nonexistent, we will not get new manufacturing jobs back here. One thing to remember, usually it isn't a foriegn manufacturer competing with us. It is US companies outsourcing their manufacturing to places like china to get cheap labor. It isn't the chinese guy screwing us, it's the very companies we work for. The "bonus babies" get bigger bonuses, the workers get the shaft. The boardroom types have decided to eliminate as many US employees as possible.
 
I know this will not be a popular comment but it needs to be said. We now live in a world economy. That's the way it is and there is no changing that. It is my understanding that the Chinese worker spends 90% of his wages on lifes basics (food, clothing and shelter) and 10% on his wants. Here in the U.S. we spend 27% on basics and 73% on wants. You can pick these stats apart but you get the just of it. Now in China the workers need to live right next to their jobs so they have no comuting costs. Some even live at their place of employment in company furnished housing. Here many people live in the berbs or out in the country many miles from work. So the Chinese live where they have to and we live where we want to. Now you need to have a vehicle to drive to work and the wife needs one too. Then we also have the old truck with the plow on it that we also use for hunting. All these vehicles need to be maintained, we need to buy fuel and license and insurance for them. The chinese drive bicicles. To sum this up we need to lower our standard of living if you are going to compete with them for jobs. How can you expect one country to live so much better than the next when we are all competing for the same jobs. Don't get me wrong. I do not want to lower my standard of living. I worked very hard to get it here but I realize that in order to get jobs back here that is what we have to do. We say we are losing our jobs to the chinese because they are working so cheap but there are no more people starving to death over there then there are here so they must be getting paid enough to live. I bet they are just as wealthy as us because true wealth is not measured in dollars. I welcome your critisism of my opinion because I don't know, I'm just saying.
 
Not to sound critical or unpatriotic but....

I have a hard time calling these companies American companies anymore. True, they are headquartered in the USA, they even occasionally pay taxes. However, their decisions are not based upon what is good for the USA or anyone who lives here, no matter what they say. They are only concerned about that annonymous group of people called shareholders. It is best to buy cheap and sell dear, though that doesn't work too good for employees, suppliers or customers. Too bad for those guys. Perhaps they should by some stock?

Anyway, my point is that these companies are not American anymore. They are multinational companies. I've heard them called transnational companies. They could care less what happens to people in the USA, as long as we keep on buying their stuff.

I hope this doesn't sound too harsh or even bitter. I've spent my life watching the country I love be sold off to the highest bidder, knowing all the time that my children (and certainly my grandchildren) are going to have a much, much tougher time making a decent living.

Christopher
 
I think you need to see all sides. I left the farm in 1958, enlisted in the Navy, grew up as a peon in a large company and in 15 years went on to be a Project Manager, general Manager and Vice President (I have no degree) I went on to be President and COO of a 100 million dollar national company and then back to Project Management of DOE remediation projects running over 100 Million bucks, all the while maintaining my quals as a welder and electrician.
I am now 69 and running a constuction project in Ohio. Do I enjoy this work? Darn right.
Do I have great workers? Darn right!
Do they get treated well and paid good? Darn right! (We, as a team, get rid of any bad workers, and they are very few)
Have I had big bonus'? Darn right!
Have I bid/won profitable projects? Yep, and my team reaped the rewards of more work.
Have I worked with lazy or bad executives? Yes, but not very many.

I agree that we can't compete with China's wages but I don't agree that it's one sided. Our government has almost no business experience and has made very poor choices...they spent my social security, your medicare dollars, encouraged the "no down payment" for people who couldn't afford homes in the first place, my home town has unfunded liabilities of 90 million bucks for retirees in that community, on and on.
Who did they think was going to pay for that?
I don't think it's any one issue, worker, management, greed, etc, any more than I think it's our own ELECTED officials!
 
Wayne: I will take you up again The getting screwed at dealership. 1. Did the cutomer get a quote for the job? did he know it was $5000? Did he ok it? He had the option to go elswhere. What about the day the dealership had no work and had to keep a crew on doing meanial tasks (sweeping the floor sorting out fastners etc.) Now how many times have we seen some one work for 3-6 months and want the managers job or move up???? Used to get me, one job years back the company annouced rate of pay Fellows went and bitched profucly about it. They knew what it was and had the choice not to go (but they could not get a job in an unemployment line) so we were stuck with them.
 
NCWayne makes a lot of valied points, but also left out some,IE taxes.
Iv'e been selfemployed most of my life and can speak with some knowledge. In 2000, I paid federal taxes to the tune of 28%,state taxes to the tune of 11% and SS to the tune of 14%. My workers comp cost me 850.00 per year and it didn't even cover me. It covered no-one but I still had to carry it. Being self employed has it's benefits, but they sure cost you. later, Nat
 
We're a world economy, but not a world nation. With every country we deal with interested in our demise or failure. Goggle pulled out of China. Other countries need to progress on their own and monies/jobs don't need to be funneled to them by un-American companies. The world order needs to bring people up to a better living standard not down.
You parroted what I speculated on yesterday, was there a bigger plot to do this by all that's went on over the last 10-20 years of fuel prices, bank thefts, etc?
 
One problem is that people are gutless.If they work someplace and then the wheels bring in a college kid and pay him half as much they should shut the place down.In order for things to work good and get loyalty from people you have to treat them good and be loyal to them.

So on one hand a bunch of you say that we people that work somewhere have to be a little mouse and if they kick us around they are entitled to do that.Why did you grow up in America and ever think like that?

You cant get 2 people out of a hundred to stand up.Well thats why there needs to be a Union.If not a union a walkout by all of the workers.Yeah that will happen!

I actually think people nowdays dont like unions because they are ignorant.Another big thing is that there are so many people that will stab you in the back that that is just one more equalizer they dont have to deal with so they will always be against unions.They will lie and do just about anything to climb over you to get what they think is somewhere by doing it.If people want to stand up,they have to have leverage.Pictures of the CEO with a hooker on the front of a newspaper or a union is about all I can think of.

Unions are for when things are going good.By being spineless,people have allowed this corporate welfare mentality to get out of hand.

This world economy crap is just that.We will never be able to compete with slave wages unless we are slaves too.

To fix this we will have to stand up to them.Every time the people stand up the crooks back up.Maybe kind of like a strike only far worse.

Just shut them down.No work for a couple of months.I bet when they dont get any money from workers in the United States they will get a whole lot better to get along with.It will get a whole lot more regional then.

Also most of the problem is high fuel prices.We should blockade the fuel terminals until the price comes down or just take them over.Thats probably the best thing because as long as the crooks have them they can ruin us.

All big corporations need to be broken up into smaller companies.I dont even care what excuse is given,if it wants to operate any more it will be broken up and thats all there is to it.This monopoly crap has gone on way too long.That also means oil companies they are first on the list.

Everybody has a boss.If there is some jerk down the line treating the help bad,and then there is a walkout or shutdown,somebody is going to get a phone call and that jerk will be fired probably.If the walkout is over that thing,then there should be a phone call to the owners stating what the jerk did and that he needs to be fired for things to get back to normal.You never know what might happen until you tell your side of the story or ask somebody.

Companies that wont treat their help right need to go anyway.Anything you have thats worth fighting for,you better figure out a way to fight for it.Big companies wont get any better until they are forced to.

Now that might be a little strong for some to deal with.Yeah well what has giving in got us?This mess right here.I know when you are on the bottom it seems like you dont have any power,and you dont.The only power you have is numbers and then only if you stick together.As long as you give in,they will take more from you.

Just like the example of the dealer doubling the bill.The people that set behind a desk are legal thieves.Thats one reason I quit being a mechanic.It gets disgusting after a while.A mechanic does all of the work,buys the tools and has the heat and cold and gets beat up,and some bunch setting behind a desk warm in winter cool in summer gets the money.The big wheels dont want to pay a mechanic any more than they can get away with.Then they run around in suits and new cars like they are better than everybody else.

There is no kind of business that I can think of thats any different.Farming,construction,even running a store,somebody else up the chain is diverting most of the money in to their bank and the man working and taking all the risk is just barely getting by and working more than 3 other people.

I have been wondering ever since the 1970s how long we would put up with this.I guess until we are all slaves,I dont know.Ive walked picket lines before and its not fun,but its way better than getting screwed over.I dont know what people not in a union could do other than just walk out,and they could get fired.Not everybody would walk out.Most people dont have any savings so they wont want to do anything.

One thing just occurred to me.There could be a work slowdown.Go to work but just go gradually slower and slower until it starts hurting them in their pocket.Problem with that is they would mistreat the good employers and not hurt the bad ones.The bad ones might be too stupid to notice.
 

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