Your salary is determined by your replacement cost.
Let’s say your company renegotiates their office lease and now pays half what it cost before. Are they going to give everyone a pay bump? Unlikely. Might give a bonus to whoever renegotiated the lease. They might reward shareholders by buying back some stock or paying out dividends. They might invest in future growth by hiring new people or by buying new equipment. But why would they give the money to the employees? That doesn’t reward shareholders or increase productivity; it might make everyone a little happier but that is unlikely to increase productivity enough for it to be worth it (and even if was, management doesn’t think like that).
Same argument as AI efficiencies: when automation (or another change such as arguably less HR activity) results in more free time for employees, the result is not higher wages because this is the type of competitive edge that is sought in order to increase profits rather than redistribute wealth. The result of efficiency for workers is either more work, or layoffs.
Wages don't come from surplus. Wages come from negotiation power. Surplus goes to ownership
epicureanideal|1 year ago
jaredklewis|1 year ago
Let’s say your company renegotiates their office lease and now pays half what it cost before. Are they going to give everyone a pay bump? Unlikely. Might give a bonus to whoever renegotiated the lease. They might reward shareholders by buying back some stock or paying out dividends. They might invest in future growth by hiring new people or by buying new equipment. But why would they give the money to the employees? That doesn’t reward shareholders or increase productivity; it might make everyone a little happier but that is unlikely to increase productivity enough for it to be worth it (and even if was, management doesn’t think like that).
wahnfrieden|1 year ago
Wages don't come from surplus. Wages come from negotiation power. Surplus goes to ownership