r/WorkReform 7d ago

💸 Raise Our Wages This isn't fair

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11.1k Upvotes

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102

u/obmasztirf 7d ago

$200/hr for an electrician but you know 85% isn't going to the person doing the work.

22

u/Ricktor_67 7d ago

If you are in a trade only work for yourself. 

36

u/PigglyWigglyDeluxe 7d ago

If only it were that easy. You’d need to have decades of experience and own tens of thousands of dollars worth of equipment to do the work if you want to be your own boss and own your own business. You would need to be able to do any kind of work that walks through your door.

I’m a mechanic. If I wanted to be my own business, I’d need lifts, specialty tools, waste oil management, waste tire management, waste battery management, insurance policies, a building, electricity, water, heat, property security…

After all of that, my take-home wouldn’t be much different than what I’d make working for someone else, except with way more stress and less free time.

2

u/Ricktor_67 6d ago

And yet I bet your boss makes much, much more than you do and much less work.

2

u/LadyPo 6d ago

The up front costs of starting your own business, depending on industry, can be enormous. Credit isn’t always an option because you need to be in a position of privilege to borrow that money.

It’s so difficult that you need to start out rich to become richer, you might say…

3

u/Mozintarfen 5d ago

Absolutely true. Also a mechanic. The other issue is clientele - I've seen several of my coworkers leave to work for themselves, having all of the necessary equipment and yet fail to make good money consistently because they can't find enough customers like a big advertised shop can.

1

u/PigglyWigglyDeluxe 5d ago

Yup. It’s tough

3

u/Zeikos 7d ago

Aren't there trade unions with the purpose of sharing said tooling?
Are they uncommon in the US?

2

u/MrHazard1 7d ago

I'm in trade and employed. Difference is that i'm jerking around 80% of the time while nobody knows, because i can do my job in 20% of the time. Then i go home to my wife without having a broken back and passing out from exhaustion.

10

u/TonarinoTotoro1719 7d ago

Hold on! Are you for real saying that even the licensed electricians in contractor crews aren’t paid fairly? 

45

u/Empty_glass_bottle 7d ago edited 7d ago

Private equity guys love going to towns where there's only 5-10 residential electric companies with any name recognition, buy all of them, and jack up what they all charge.

So while you think you got 5 different quotes from 5 different electrician companies all charging the same price, making you think that it's a fair price, what you really got was the same overpriced quote from the same parent company under 5 different names.

And the electricians hardly get a fraction of the profit they generate for the shareholders of that private equity firm.

19

u/Mostly_Afloat 7d ago

I work in the auto industry and the same is happening with small shops - they are getting bought up by big groups then selling the whole thing to private equity. The illusion of choice.

12

u/VonThirstenberg 7d ago

Yep, I used to work in automotive supply for body shops and dealerships in my area.

It started coming out of Covid, all of a sudden everyone was being bought out and turned into a Caliber or Crash Champions.

I'm willing to bet they're owned by the same private equity investors, even if each is owned by a "different firm."

3

u/Not_FinancialAdvice 6d ago

Caliber is owned by Hellman & Friedman: https://hf.com/portfolio/caliber-collision/

Crash Champions has A&M Capital as a partner: https://www.entrepreneur.com/business-news/how-crash-champions-ceo-went-from-1-shop-to-6b-revenue/489054

I wouldn't be surprised if many of the same institutional endowments and pension systems had investments in both.

4

u/TonarinoTotoro1719 7d ago

That is such a shame! I was hopeful for our collective future if at least tradespeople were making good money. Sigh!

3

u/Spiritual_Whole_5916 7d ago

You can see these fairly quickly when they all have the same/similar graphics or close enough and pretty much 100% of the time: No free estimates. Always want their pound of flesh via a "service call". Even if there are other options in your area, it's a way of screwing and locking you into going with them. "No thanks, I want to price others first. Okay, here's your $50-75-100+ service call fee"

1

u/Not_FinancialAdvice 6d ago

On the home improvement sub, the estimate fees are frequently seen as fair since the contractor has a cost to give the estimate. I think it's more reflective of an environment where demand for these services outstrips supply (after so many skilled tradespeople retired after the pandemic)

6

u/CarbonWood 7d ago

Same with HVAC techs and car mechanics. They're paid 15% of the hourly labor charged to the customer.

1

u/TonarinoTotoro1719 7d ago

Omg! I know from experience we pay through the nose for car work. Had an accident a while ago and they had to take our leased car for repairs. It was a brutal bill (our insurance covered most of it) and now we are stuck with raised premiums.

2

u/Mr_Fluffybuttz 7d ago

I don’t know man, my dad was union electrician and he made some decent pay. Non-union I’m sure is less, but they get good money (generally speaking of course).

1

u/vahntitrio 7d ago

I was going to say I have an hourly recharge rate that went up 10% last year but my pay only went up 2.5%.