What is ethical business practice? The minimum wage that the government set for their people is so outdated and needs to be reformed. A store owner shows what it’s like to be still legal while choking your workers with minimum wage.
Madeline Pendleton runs a shop that sells original alternative vintage fashion in Los Angeles. This is her story.
At 1.4 million views, she breaks down how business exploitation looks like.
Her model in a small business is similar to Dan Price, who cut down his earnings by over 90% to allow his workers to earn $70k a year. Gravity Payment continues to thrive to this day, and the CEO saw improved life quality in his workers, which means better performance and fewer turnovers.
“Okay, this is gonna be a great lesson in labor exploitation.”
“I own a small business, but we all earn the same take-home pay rate per day, which is $250. Full-time workers work four days a week at my place. Part-time workers work two days per week at my place.
For full-time workers, this amounts to an annual salary of $70,200 per year, which I know sounds very fancy, but it only makes us lower middle class in Los Angeles where we are.”
She continued, “Still feels pretty rich to us, though, because most of us are used to be in poor.”
“I have 7 full-time employees and 3 part-time employees, and my total annual payroll expenses for everyone, including myself:”
“Now, again, remember, this is total payroll expenses, but I only earn that $70.2k like everybody else. Let’s imagine, though, that I instead paid all of them minimum wage, and I just kept the rest.”
She proceeds to show the minimum wage of Los Angeles for her store with less than 26 workers.
For a total of 54 workdays, she only has to pay $23k for full-time workers and less than $12k for part-time workers. The total is:
Economic Policy Institute report clearly states that CEOs averagely make over 200 times their workers who make $58k yearly on average. The reason?
“CEOs are getting more because of their power to set pay, not because they are more productive or have a special talent or have more education. Exorbitant CEO pay means that the fruits of economic growth are not going to ordinary workers, since the higher CEO pay does not reflect correspondingly higher output.”
And she could’ve made this much annually. This is what’s happening to many companies out there.
A valid business to support!
People are loving the ethical way she operates her business.