Dockworkers Strike

[GowerND11]

The franchises have been losing money for years and the problem is worsening. Franchisees are trying to dump their business in record numbers.

From a finance article I found on the topic.....

Cash flow for McDonald’s franchisees declined over $100,000 per location last year, down from record numbers in 2021, according to the National Owners Association and franchisees. This came despite a 5.9% increase in same-store sales last year, including 10.3% in the fourth quarter, which featured menu price increases of 10%.

But food costs rose faster. Wholesale food costs rose 14.3% year over year, according to recent federal data. Labor costs have soared, too, as have energy costs. So, while that Big Mac you ordered is a lot more expensive, less of it is going to the franchisee.

And yet, corporate profits are still up. It isn't a labor problem, it's a greed problem.

 

[ab2cmiller]

And yet, corporate profits are still up. It isn't a labor problem, it's a greed problem.

I believe that "corporate profits" are still up because the franchisee fees that the franchisee is paying is based upon Gross Sales per their franchisee agreements. Thus as the price of labor and food costs went up, the franchisee has to raise their prices to cover, McDonald's corporate office is automatically making more money while the franchisees make less money.

Greed doesn't appear to be the problem.

 

[irishnd31]

Any of you other posters with average intellect like myself come onto this thread and be like...

 

[Bluto]

The union should be fighting for generous buyouts and generous funding for the retraining of personnel whose jobs are eliminated due to PROGRESS called automation.

I have nothing against unions. Generally speaking, we need more union membership as a percentage of the workforce. But the German model of the union being a part-owner of the company would be key here. Any union that stands in the way of progress and efficiency is selling out the long-term interests of their own members for short-term wins.

Also union membership in society should be paired with a hefty progressive income tax in the sqme society, because the unions' argument that the owners of the capital/automation will be basically printing money and a select few will own the

One of the better posts in this thread.

 

[Bluto]

-- this basically captures my chief issue. I don't care how much they get paid. The idea that we should be intentionally holding back progress in the name of "jobs" is insane... and can be applied to every technological advancement of the last 100+ years. These guys also were against containerization, FWIW.

I agree with the general sentiment. I do not agree with the idea that “automation” to increase “productivity” should automatically be labeled “progress”. The reason I bring this up is due to the impacts the consumer based economy in the US has on the environment.

I mean in the case of ports, increased productivity probably equates to a more efficient system of importing massive quantities of cheap, shitty products that we then struggle to dispose of in 3-5 years which then encourages the marketing, production and sale of even more cheap shitty products.

Anyhow, that’s probably part of a broader discussion.

 

[RDU Irish]

-- this basically captures my chief issue. I don't care how much they get paid. The idea that we should be intentionally holding back progress in the name of "jobs" is insane... and can be applied to every technological advancement of the last 10,000+ years. These guys also were against containerization, FWIW.

FIFY

Aqueducts put water carriers out on the street. Wheels too. Don't get me started on fire.

 

[Bluto]

FIFY

Aqueducts put water carriers out on the street. Wheels too. Don't get me started on fire.

Been interesting how the Luddite’s have thrown such a temper tantrum over the transition to clean energy no?

 

[RDU Irish]

I believe that "corporate profits" are still up because the franchisee fees that the franchisee is paying is based upon Gross Sales per their franchisee agreements. Thus as the price of labor and food costs went up, the franchisee has to raise their prices to cover, McDonald's corporate office is automatically making more money while the franchisees make less money.

Greed doesn't appear to be the problem.

Corporations are supposed to earn higher profits year over year. Pointing to "record profits" as some sort of gotcha is always funny to me. If your mindset is one of pulling as much money out of your bosses pocket while doing as little work as possible - good luck bro.

McDonalds had higher revenue 10 years ago - profits are up because they bought back 25% of their shares in that time and they nearly doubled their operating margin. Cash flow may have dropped but still, good luck finding a poor McDs franchisee. That company has spawned a crap ton of wealth.

 

[RDU Irish]

Been interesting how the Luddite’s have thrown such a temper tantrum over the transition to clean energy no?

There is a massive fallacy in your claim. Energy density has progressed humanity throughout history and non-nuclear "clean" energy runs in the opposite direction.

 

[ndfanatic78]

Maersk made record profits during COVID. So much money they didn't know what to do with it, they just wanted to make sure shareholders got paid while they were price gouging. Go ahead and Google their numbers. Insane increases in profit year over year. Huge increase in dividend per share. That was their priority, and it probably didn't sit well with the greedy workers.

You left out that they have cut their work force by over 50% over the past decade also. So those profits sure didn’t create anymore jobs.

 

[Irish#1]

I have a lot of experience being a fully vested union member and also having been a CEO of a company. I found no union benefit for me as a young go getter being that most of the policies put forth in my industry hurt those who excelled as they were more to level the playing field. That was just my experience. My grandfather loved his union experience back in the days after WWII.

I was the CEO of a small company so was never paid in millions with any golden parachute or large stock option windfall. What I did gain from the experience was several ulcers. The stress of knowing every decision I made incorrectly might cause someone to miss a house payment or not be able to put food on the table kept me up at night. Until you have that level of responsibility, it is difficult to comprehend. I have no problem with the pay a CEO makes for a large corporation as long as they are profitable.

Like I said to many about those "nasty 1%ers". Their piece of the pie is not restricting anyone from also earning similar. If you have the talent and ingenuity, you can do the same.

Never understood why people get upset about how much a CEO makes. They worked to get into a position to have the opportunity, then negotiated their salary and benefits just like unions do. That union leader is raking it in like a CEO. All of us are where we are because of our own choices. I would assume most here would gladly accept a similar opportunity if it presented itself. Having said that, there are some CEO's whose package is beyond ridiculous and could be pared back some. If the dock workers can get more, more power to them, but don't whine because someone else makes more.

 

[ab2cmiller]

Corporations are supposed to earn higher profits year over year. Pointing to "record profits" as some sort of gotcha is always funny to me. If your mindset is one of pulling as much money out of your bosses pocket while doing as little work as possible - good luck bro.

McDonalds had higher revenue 10 years ago - profits are up because they bought back 25% of their shares in that time and they nearly doubled their operating margin. Cash flow may have dropped but still, good luck finding a poor McDs franchisee. That company has spawned a crap ton of wealth.

AND they started moving away from more Company owned restaurants to more franchisees.

I'm assuming the franchisee's are still making money, just not as good prior to the wage increases and wholesale food price increases.

 

[RDU Irish]

Never understood why people get upset about how much a CEO makes. They worked to get into a position to have the opportunity, then negotiated their salary and benefits just like unions do. That union leader is raking it in like a CEO. All of us are where we are because of our own choices. I would assume most here would gladly accept a similar opportunity if it presented itself. Having said that, there are some CEO's whose package is beyond ridiculous and could be pared back some. If the dock workers can get more, more power to them, but don't whine because someone else makes more.

Most CEOs are in cahoots with the BOD who is really not beholden to anyone. Passive investment owns a vast majority of public companies and rubber stamps anything put to shareholder vote. Cronyism rules the board room creating some obscene payments for a lot of executives that are steering a boat they didn't build. I see it as similar issues on both ends of the spectrum.

The Vanguards and Blackrocks of the world really need to become more judicious in corporate governance and board selections. It has to get pretty terrible before anyone raises an eyebrow.

 

[RDU Irish]

AND they started moving away from more Company owned restaurants to more franchisees.

I'm assuming the franchisee's are still making money, just not as good prior to the wage increases and wholesale food price increases.

That would explain the higher margins on lower revenue. The few franchisees I have come across did not want for much, diamond gripped their McD assets and would probably sell their children before turning down a new location opportunity.

 

[TorontoGold]

Never understood why people get upset about how much a CEO makes. They worked to get into a position to have the opportunity, then negotiated their salary and benefits just like unions do. That union leader is raking it in like a CEO. All of us are where we are because of our own choices. I would assume most here would gladly accept a similar opportunity if it presented itself. Having said that, there are some CEO's whose package is beyond ridiculous and could be pared back some. If the dock workers can get more, more power to them, but don't whine because someone else makes more.

Because often times these people, especially at the biggest companies, don't poses any inherent knowledge about the business are usually pencil pushing private equity types (like myself) who just ramble off corporate lingo about "synergies" and then say "everyone needs to play their part in helping make the company more efficient and then they meet with their accountants (me) who show them how to increase their net comp while the rubes (1014) will run to their defense about how hard a job they have while throwing peanuts at the employees.

 

[ab2cmiller]

Because often times these people, especially at the biggest companies, don't poses any inherent knowledge about the business are usually pencil pushing private equity types (like myself) who just ramble off corporate lingo about "synergies" and then say "everyone needs to play their part in helping make the company more efficient and then they meet with their accountants (me) who show them how to increase their net comp while the rubes (1014) will run to their defense about how hard a job they have while throwing peanuts at the employees.

I get the impression that you don't like your job very much.

 

[TorontoGold]

I get the impression that you don't like your job very much.

I love my job. Gives me a ton of perspective.

 

[NDVirginia19]

How come no one mentions the union boss's salary of over $900k/year? Is that too much?

Who is Harold Daggett, the union boss behind port strikes who makes over $900K a year and once fought Mafia-link allegations?

The longtime blue-collar advocate has fought against alleged ties to the Mafia in the past while he led a luxurious lifestyle.

nypost.com

They're too focused on the fact that two people who were set to testify against him in a federal case were found dead lmao

 

[BeatSC]

Not all unions are created equally and some are borderline corrupt just like politics. I think the union hasn’t considered that they will in effect be getting an added bonus raise with the no tax on overtime pay! A large number of these members make the big bucks with OT, swing shift differential etc. no Tax on OT will mean alot more than another 5% raise!

 

[GATTACA!]

Not all unions are created equally and some are borderline corrupt just like politics. I think the union hasn’t considered that they will in effect be getting an added bonus raise with the no tax on overtime pay! A large number of these members make the big bucks with OT, swing shift differential etc. no Tax on OT will mean alot more than another 5% raise!

I can't wait to not have to pay taxes on OT wages..........once OT wage laws are eliminated. Let's ignore that part!

 

[NDVirginia19]

Nice to see what a competent executive does for you

 

[Irish#1]

Most CEOs are in cahoots with the BOD who is really not beholden to anyone. Passive investment owns a vast majority of public companies and rubber stamps anything put to shareholder vote. Cronyism rules the board room creating some obscene payments for a lot of executives that are steering a boat they didn't build. I see it as similar issues on both ends of the spectrum.

The Vanguards and Blackrocks of the world really need to become more judicious in corporate governance and board selections. It has to get pretty terrible before anyone raises an eyebrow.

Because often times these people, especially at the biggest companies, don't poses any inherent knowledge about the business are usually pencil pushing private equity types (like myself) who just ramble off corporate lingo about "synergies" and then say "everyone needs to play their part in helping make the company more efficient and then they meet with their accountants (me) who show them how to increase their net comp while the rubes (1014) will run to their defense about how hard a job they have while throwing peanuts at the employees.

No doubt they are in cahoots and do a lot of rubber stamping. I used to work for Al Lord who ran Sallie Mae. One of the best examples of a self indulgent don't care about anyone but themselves CEO you could find. Cost me about 150K in stock options 15 years ago.

My point is that the CEO worked to get themselves into position. They didn't just graduate and get placed in a CEO position.

 

[TorontoGold]

No doubt they are in cahoots and do a lot of rubber stamping. I used to work for Al Lord who ran Sallie Mae. One of the best examples of a self indulgent don't care about anyone but themselves CEO you could find. Cost me about 150K in stock options 15 years ago.

My point is that the CEO worked to get themselves into position. They didn't just graduate and get placed in a CEO position.

Ok? Everyone works hard. Do you or 1014 make posts when they have their comp packages wrapped up? No. That's because they're done mostly behind closed doors with their accountants. For publicly listed companies the figures are so large that most people can't wrap their head around it. Union leaders getting overpaid is always a rich talking point, take away the title of "union leader" and it's essentially another C-suite exec getting paid a large sum of money....would they still face the same "omg union leader iz rich bad!"? No they wouldn't.

At the end of the day, if we're supposed to operate in a capitalist society we should expect to see people use their limited bargaining power to satisfy themselves, we expect companies to maximize profit but when it's the working class is seen as "greed".

 

[IrishLax]

I agree with the general sentiment. I do not agree with the idea that “automation” to increase “productivity” should automatically be labeled “progress”. The reason I bring this up is due to the impacts the consumer based economy in the US has on the environment.

I mean in the case of ports, increased productivity probably equates to a more efficient system of importing massive quantities of cheap, shitty products that we then struggle to dispose of in 3-5 years which then encourages the marketing, production and sale of even more cheap shitty products.

Anyhow, that’s probably part of a broader discussion.

These are good points, I just think it generally comes down regressive ideas being problematic. For example, this is how the ILA guy with his yacht thinks about toll booths:


We all agree that’s backwards, right? I support your position that not all automation is by default “good” and you have to take it on a case by case basis of benefit vs detriment. But it’s unarguable that technological progress in the long run == less bad jobs, more good jobs, and higher standard of living for the collective masses. There is too much evidence to support this as being true.

 

[Bluto]

There is a massive fallacy in your claim. Energy density has progressed humanity throughout history and non-nuclear "clean" energy runs in the opposite direction.

Not necessarily.

The problem with your argument is that it does not account for the effects of an almost exponentially increasing global population relying on that model.

Energy production based on the extraction and burning of various natural resources such as say wood and or fossil fuels is beginning to propel humanity in the opposite direction pretty quickly. Taking a drive through North Carolina at present would demonstrate that.

All ecosystems have a carrying capacity for specific species and when a species exceeds that it will often result in a rather sudden and dramatic decline of the species.

 

[RDU Irish]

Not necessarily.

The problem with your argument is that it does not account for the effects of an almost exponentially increasing global population relying on that model.

Energy production based on the extraction and burning of various natural resources such as say wood and or fossil fuels is beginning to propel humanity in the opposite direction pretty quickly. Taking a drive through North Carolina at present would demonstrate that.

All ecosystems have a carrying capacity for specific species and when a species exceeds that it will often result in a rather sudden and dramatic decline of the species.

You conveniently skipped over nuclear. Gas is powering survival and clean up - electric anything is short of useless in western NC right now.

Developed countries all have birth rates below replacement levels. Advancement has had the unexpected benefit of crushing your people as locusts apocalyptic baseline assumption. You seem to view humans as a core "problem" if you will.

 

[drayer54]

Nice to see what a competent executive does for you

 

[irishff1014]

And yet, corporate profits are still up. It isn't a labor problem, it's a greed problem.

It will never end. Look at sporting events and how the tickets vary from opponent to opponent . And the day of the week that they play.

I 100% agree that when you make record profits the workers should get some extras, but when it’s a year of bad numbers you don’t get any extra.

But it has to be reasonable and everyone is chasing the green. It’s not always the right rabbit hole to go down.

 

[calvegas04]

The Strike is over!!... until after Christmas

 

[IrishLax]

Is anyone really surprised people aren’t sympathetic to this dude?