This is the last in a three-part editorial series on minimum wage.
The debate over the minimum wage is ridiculous.
People should get paid what they’reworth and a minimum wage is a first step to seeing some balancing out of wages. But the chances of seeing a level playing field will be an upward climb.
While we bicker with each other over a couple of dollars per hour here and there, those in the highest levels of the corporate ladder continue to see incredible salaries and net worth. According to Oxfam — an international confederation of charitable organizations focused on the alleviation of global poverty — the richest one per cent of the population now have more than the rest of the world combined.
READ MORE: Minimum wage part one
READ MORE: Minimum wage part two
The study points out that in 2015 a literal handful of people, 62 individuals, had the exact same amount of wealth as 3.6 billion people. What’s worse is the number of individuals lucky enough to be in that bracket is a reduction from 2010. Just eight years ago there were 388 individuals who had that honour.
There’s money out there, but it appears to be held up by a small group of people who could most likely fit in a luxury bus.
At some point one has to ask the question: How much money is too much?
For large corporations, it’s never enough. Oxfam conducted a study of 200 of the largest global companies and found that nine out of 10 have some sort of presence in a tax haven. It’s not like there’s no wealth, it’s just being kept by a select few.
Oxfam also points out that the CEOs in the top U.S. firms have seen their salaries increase by 54.3 per cent since 2009. We have legalized this type of system and yet have decided there needs to be a cap in salaries for our top athletes.
CEOs are financial athletes and they, like everyone else, need to see a point where the salary caps out and the money is redistributed among employees. This is not an issue only found in North America. In India, Oxfam found that the CEO of the country’s top technology firm has an annual salary at 416 times that of the typical employee.
Some say it’s a question of envy. Maybe.
Bill Gates’ net worth is estimated at $75 billion, that’s 12 zeros after the 75. Coming in at number two is Amancio Ortega, the Spanish founder of Inditex, $67 billion. In third spot is Warren Buffett, CEO of Berkshire Hathaway, $60.8 billion.
It’s interesting to note that Buffett has gone on the record to say he feels that while he’s paid more taxes than others, his tax rate is actually less than that of his secretary. Governments allow for tax shelters for the wealthy and then tax their lower-earning citizens.
We allow this type of system to occur.
Looking at Sears Canada closing shop we find similar instances. Just this month the CBC reported that staff were let go but head office staff received $6.5 million in bonus payment since last June.
What happened to the other 16,000 employees? Most received no severance and it is believed many will receive reduced pensions. There’s nothing quite like sticking it to the man than hurting those who built up the company.
Earlier this year Walmart announced it was raising wages of new employees to $11 per hour, up from $10. The same day it announced it was closing 63 Sam’s Club stores.
Another example comes from Kimberley-Clark — maker of brands such as Kleenex and Huggies — where it was announced plans to cut 5,500 jobs, plus removing 10 manufacturing plants. However, net sales for the company show at $18.3 billion.
These examples are within the last month. A Google search of this type of business practice results in countless examples.
Of course, from an executive and shareholder standpoint, this is sound financial practice. Indeed, it’s praised from those in the industry.
So while we fight over a couple of dollars in the form of a minimum wage, others appear to be amassing much of the world’s wealth, and we are letting them.