Re: “Shame on Grinch America for workers’ stagnant wages,” Dec. 19 editorial.
There is a flaw in your editorial on the stagnation of wages. Yes, wages have stagnated. The cost of an employee, however, has soared. Before a business can hire or provide raises to employees, it has to make certain it can cover the costs of an employee.
The obvious costs are the employer’s share of Social Security and Medicare. In addition, there are federal and state unemployment taxes, worker compensation insurance, health insurance/benefits, sick pay, vacation pay, retirement plan contributions and ongoing supply and equipment costs. A new employee incurs costs to promote the job opening, review resumes and interview, verify citizenship, conduct background checks and often drug tests, document the hiring decision, and train. The legal ramifications of a bad hire in terms of company liability are enormous. The upsurge in sexual harassment cases is just one instance of how employee behavior has become corporate responsibility.
Employees are essential to the growth of a company but also one of the greatest liabilities to its long-term viability. If that liability can be replaced by technology, it is prudent business to do so. All of which doesn’t help the growth of hourly wages.
Ի岹Գٳ, Morrison
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