"A senior vice president at Walmart told Yahoo! Finance at the time it was because of a “shortage” of truck drivers. (Those who study the trucking industry dispute that such a shortage exists, concluding that drivers leave the industry for jobs with better pay and hours.)"
It turns out that good truck drivers could also be doing other useful work, and want to be well compensated and taken care of for their labor.
If anyone wants to work on this problem with me without solving the self-driving truck / Aurora problem outright - I think the answer is something like remote operation, level 3-4 autonomy for highways, and nice comfy air conditioned driver hubs in cities so nobody has to be away from home for days at a time. Boom - all the drivers come back and get paid decent wages to drive trucks. Ideally the per-truck subscription fee for the service is an add-on to the cost of doing driver business.
How realistic are the trucking sims? Do you actually get gas and unload? Highway stuff and regular driving sounds good but backing a trailer up to Walmart video game style sounds frightening.
I'm not referring to "sim", I'm referring to remote piloting. Real time sensor and controls feedback from a truck that is only autonomous when it makes sense to be. We can pilot drones over 100s of yards in real time without a hitch. We just need a bit more range (few kms) via, say, the internet, and you can do this fairly easily. I don't see a research problem, I see a funding problem and an aversion to autonomous trucking b/c people think it's either completely infeasible, or completely solved by Aurora. I'm not sure of either.
The use case does not include operating remotely at 70mph on freeways, esp because internet connectivity is hard over most the USA. That bit is mostly lvl 3/4, and is something that is addressed well by other companies. It's the long tail between lvl3/4 and all the scenarios that remain in which a remote driver solves the problem. Esp in logistics yards, which are chaotic, fast paced, and driven by voice communication.
That is a much easier problem than backing a truck up to a loading bay. Even landing an airplane is a lot easier if you have an ILS. Space and the air are mostly empty. A warehouse loading area is cluttered with other trucks, debris, and cargo. Although I could totally see this being done remotely with VR and a ton of cameras.
Just to add spice the convo: Backing into a loading bay is quite easy, autonomously. Once you stage the truck you can push a button and just watch it go. See: https://outrider.ai (which is where I work, and we do all the staging _also_, but I'm actually interested in "everything else" as well). There's a lot of very human-ish problems to get to that state, that I think remote operators can really help with.
Pretty good for the expensive ones. They are not video games though, and so they are not making the shortcuts games do to make them fun. I've driven a few (snow plow, excavator) and they are very hard to control - then I see someone who drives that machine professionally get on: they get a near perfect score and comment about how real it feels. Note that part of the sim is the controls: they take the cab from a real machine and replace the windshield with a screen (for version 1, often version 2 starts to take away parts, but everything you touch including the seat is the real thing).
I've long thought that to renew your drivers license you should have to spend a day every few months in a simulator to prove you can drive safely. Do you maintain a safe following distance? Can you maintain the speed limit? Do you stop for pedestrians? Do you zipper merge correctly? Here is a situation where someone else screwed up and you will crash, can you choose the best crash? Here is an icy road, can you control the car? there is a lot that modern simulators can do but few people have used them.
I agree with you on the DL renewal based on a sim.
Interestingly:
The base CDL is a one and done skill test. There are no CPEs like with other regulated industries (nurses/teachers/investment advisors) - but there is a health and fitness check.
The difficult part is actually the last mile/few miles in trucking. Open highway driving is a significantly less complicated problem than navigating down side streets then backing into a warehouse to complete a delivery.
Freight tech companies have been talking about automating every BUT the last mile/last few miles for years. Have a stable of drivers who you have on hand to take over the last hour of a delivery. Automate everything else.
Remote operation on public highways is a dead end. There is no wireless data network with the latency and reliability guarantees necessary for safety. Particularly when it comes to tunnels, canyons, and heavy precipitation. And let's not have any ridiculous claims about how in case of a network connection failure the truck can just autonomously pull over and stop; that's not going to work safely for descending I-70 in a snowstorm.
There may be some limited use cases for remote operation on specific local routes where sufficient network access points can be provisioned.
You can't do it with autonomy, and you can't do it with remote piloting, but you can do it with a mix of both. That's my assertion. Spending 20 hours looking at Nebraska / Illinois farm fields is not the use case for remote operation - and as you say, you lack the infra for that anyway. And navigating traffic or interacting with distribution center logistics is not the case for autonomous operation - it's an infra nightmare to get a autonomous vehicle to integrate with all that radio-voice-comms madness. Even OTR drivers just want to get that part of the journey over with and get back to the hotel.
Having a pod with local drivers near major hubs, for example, means the drivers take over when the trucks get close enough for it to matter. It wont' work for delivery to, say grocery stores (which can be local driving anyway), but it will work for center-to-center transport ala between Walmart hubs. It's the long haul OTR trucking that has high attrition / people shortages, because you're away from family for so long. That little bit can be somewhat autonomous, with handoff of remote operators only near hubs. Think air-traffic-control for trucks and hubs, except probably more hands on than just telling it what to do.
Even without full autonomy, truck platooning has been shown to be effective in places where they have been tested. One human driver and "autonomous" followers. These truck platoons could be the solution to long haul deliveries while individual drivers still handle the last mile delivery and city navigation.
Because there's no problem. There's not "shortage", it's not that there just aren't enough people to be drivers. There are plenty, employers just don't want to pay enough to attract them.
>We can argue over the solutions
No, we can't, because there's no solution needed to this non-problem artificially created by employers unwilling to pay enough to attract and retain employees.
Your ideas aren't needed except by the employers trying to perpetuate their false self-made "shortage", all to avoid just paying employees more.
The only actual problem is uncritically accepting the narrative of the employers as you are doing here.
> There's not "shortage", it's not that there just aren't enough people to be drivers. There are plenty, employers just don't want to pay enough to attract them.
OK, well, let's not mince definitions. For the purposes of my thought process, a shortage is defined as "Number of people we want to do a job" minus "Number of people who do that job". The semantic difference between that and what you said is so small as to be negligible to me and doesn't preclude "increase wages" as a solution. I think that's fine for you to have a preferred solution or even a different preferred definition.
No, you're just wrong. You're carrying water for the employers who want to squeeze their employees.
Again, there is no actual problem here, just an artificial one created by employers unwilling to pay their workers and crying about it. Don't buy into it.
It's not about employers in this case. If we think being a truck driver is an important job we can subsidize truck drivers federally, via taxes.
At the end of the day, society (in the form of government regulation) gets to decide what is and isn't an important job (i.e. government subsidies), and we the people can certainly put our thumb on the scale.
People collectively decided truck drivers were overpaid [relatively] in the 1970s, hence the deregulation of the trucking industry which led to a collapse in trucker's salaries. No use blaming employers here - it was decided by the government (representing the people of the U.S.)
In this case it is. The discussion is about how employers have a dream that isn't being realized. They are metaphorical 10 year old-boys drooling over the idea of owning a Ferrari, without the capability to actually buy one.
The only "problem" is that their dream is remaining a dream. Which isn't actually a problem. Dreams aren't supposed to be realized. They are meant to be just dreams. Who gives a shit if a 10 year old can't own a Ferrari? And that is what the parent is pointing out – that the '10 year-old cries' of business are meaningless. Let them dream, but it ends there.
If people of the U.S. want to give truckers more money, they are free to do so, but that is well beyond the topic at hand.
Like any other "good", there is only ever a shortage of a particular employee category at a particular salary rate (obviously there may be a lag between supply and demand).
A shortage, as it pertains to other "goods", is defined as a situation where an external mechanism prevents price from rising. A common example of a shortage is where price gouging laws are in effect. When a shortage occurs, a non-price based mechanism must be used to distribute "goods" instead, such as first-come, first served, a lottery, needs-based selection, etc.
Only labour gets the special shortage definition seen here. Seemingly because shortage was originally used with respect to healthcare practitioners, where true shortages are possible with price ceilings often imposed by government in order to allow equal healthcare access to all citizens regardless of how much they can afford to spend, and then misconstrued onto other fields.
Can we not simply say a shortage is when there's not enough of something. In this case, available drivers willing to work for the compensation they're willing to pay?
> Can we not simply say a shortage is when there's not enough of something.
More or less, but "how much is needed" is dependent on price. You need an infinite number of truck drivers if they are driving for free. And you need no truck drivers if they are driving for $100,000,000,000 per day.
In a functioning market, price will rise until you have exactly the right number of truck drivers. Remember that the dreamers not willing to pay the price are simply not in the market. You don't have a shortage of Ferraris when 10 year old boys with Ferrari posters on their walls can't have the real thing.
However, if something stops the price from rising – such the government stepping in and saying: "It is now illegal to pay truck drivers more than $30,000 per year" – then you have a disconnect. The market wants more drivers and are willing to pay more to get them, but are not allowed to pay them more. That disconnect is what the shortage defines.
Yeah, but that's not why there's a "shortage" of drivers.
There is absolutely no upper limit to driver pay and no nameless bureaucrat filling out some permissible wage table but only "what the market will bear".
From experience I can tell you the main two culprits are it's kind of a shitty job and it's kind of a shitty job that can turn into a really shitty job (or no job) really, really fast.
No serious solutions ever treat it like the quality-of-life problem that it really is -- parking is a major problem, shippers/receivers suck up large quantities of unpaid time and living in a truck/being away from home for weeks at a time is not for everyone are probably the top 3 complaints I would hear. Well, and all the crazy shit the "4-wheelers" get up to but that's usually entertaining.
> Yeah, but that's not why there's a "shortage" of drivers.
Right, because there isn't a shortage of drivers. There isn't even a lack of drivers. We have the right number of drivers – along with a whole lot of metaphorical 10 year olds with Ferrari posters who like to talk big with their friends about how they want truck drivers, but when push comes to shove, they really don't.
Since physical limitarions exist, including time, shortages exist.
We can't simply pay more money to get a personal chef, doctor, and pilot for everyone, even if there was a magical infinite source of compensation to pay them.
Buy you could have all that for yourself - if you are a billionaire. Everybody cannot have that, but somebody could. Economics is about managing limited resources. I end up being my own personal chef. I share my neurosurgeon with 100,000 people (most of whom never need one). Because I can share my neurosurgeon there is no shortage.
> We can't simply pay more money to get a personal chef, doctor, and pilot for everyone, even if there was a magical infinite source of compensation to pay them.
Remember, money is debt – an IOU, a promise to deliver something later. It says "You do this for me now and I will give you this token (money) that you can redeem for what you want from me in the future.". 'Compensation' is just the other side of the transaction – you offering the same in kind. If there was a magical infinite source of compensation then there would necessarily be an infinite ability to provide chef, medical, etc. services.
In the real world, you only have so much to offer others, which limits how much you can receive from them. As before, transactions must be balanced. That is what it means 'to compensate'. In the real world, you have a pick what you want from the limited amount of value you can offer in kind. There is no such thing as an insatiable demand for chefs or doctors. People will stop considering those services when they become too expensive. The more expensive, the fewer people needed.
This only becomes a problem when price is prevented from rising (e.g. due to government intervention) – and that is when you can encounter a shortage.
>Only labour gets the special shortage definition seen here.
Isn't this backwards? This is the colloquial plain-language use of "shortage" (though intentionally misleadingly and wrongly used by employers), you're talking about a technical economics-only definition.
What does "a shortage" mean in supply and demand? I don't understand, because it seems to mean "we want to pay less but then we won't find any people". Well, in that case, there's a shortage of Ferraris, because the ones I can find are too expensive.
And if you were a big business, you'd hire lobbyists to petition the government for Ferrari subsidies and buy news articles talking about the Ferrari shortage, and tell all your friends that the only reason you don't drive a Ferrari is purely because of the shortage and has no relationship to your finances or priorities.
Technically, it means that there is some external mechanism that prevents price from rising. Typically that means government intervention. Healthcare often sees the government set a price ceiling on services to ensure that poor citizens are not priced out of receiving healthcare, so a shortage of medical doctors is quite possible. A shortage of truck drivers is unlikely.
Under colloquial usage, as it is being used here, the term is meaningless. Under that definition, everything is always in "shortage". It is simply used as an attention grabbing mechanism to express some kind of emotion towards the subject.
Surely a transient shortage is possible due to licensing requirements. You could offer ten million dollars a year, but there are only so many people with a current CDL and finite capacity exists to grant new licenses.
The cool thing is that if we really did see ten million dollar per year offers, then most people wouldn't want to use the services of truckers anymore (too expensive), so you'd still have the right number of truckers, if not too many, among those currently able to drive, without the need for more. No need to wait on anyone else getting licensed.
You have done well to highlight why a technical shortage is defined the way it is.
The licensing requirements for being a truck driver just aren't that onerous. It's way way harder to become a doctor, lawyer, hell, even hairdresser in many states.
A shortage of doctors is quite likely as many jurisdictions place price ceilings on doctor services.
In fact, where I live, it is quite illegal for a doctor to accept any amount of payment from a patient. We as a society believe that people, no matter how rich or poor, should have equal access to healthcare, so a doctor giving priority to a billionaire who can offer a handsome reward to get his common cold looked at over someone suffering something much worse is considered abhorrent. As such, we rely on a mixture of first-come, first-serve and needs-based priority instead of a price-based mechanism.
Never heard of any attempts to place similar restrictions on truckers, though. If you want to try and charge a billion dollars per mile, go nuts!
In economics you can’t have a shortage in a perfect market as you note. Of course most (all?) markets are imperfect so various factors can cause shortages (eg rent controls is a common example). For labor markets imperfect mobility can cause a shortage.
In common use it means that something costs more than many people are willing to pay for it. So your Ferrari example would be a valid use under this meaning.
>In common use it means that something costs more than many people are willing to pay for it.
More likely it costs far less than people are willing to pay for it. When the Colonial Piepline was shut down for ransomware, the shortage occurred because a reasonable populace correctly assessed that the local value of gasoline had just skyrocketed far beyond its steady state price, so the demand became limited only by time and social costs (e.g. you don't want to be the guy whose picture is shown filling trash bags of gasoline) plus ways to store it.
Maybe we can still call it a shortage if there's some unexpected and/or temporary reduction in supply or increase in demand. You could still buy oil during the 1970s oil crisis but it still was a shortage.
Or it can mean that there's insufficient supply to meet demand at a "reasonable" price.
In most contexts, a shortage is when there is a gap in supply due to external factors. This results in resource allocation not responsively adapting to price signals.
A commonly used example is milk, yogurt, cream and ice cream. Every year, the farmers produce milk. Some people want yogurt, some want milk, some want cream, &c. Say that one year, everyone wants yogurt for some reason. They are lining up to pay 200%, &c, for it. Then the allocation of resources adapts -- more milk is used to make yogurt. If demand for other products does not go down -- people still want just as much milk, ice cream, &c -- then their prices may go up. Over a reasonable time frame, the effect of this is that more land will be turned over to pasturage and more milk will be produced. Gradually the prices will come down. More people have more yogurt than before; more people are working on that and less on something else (whatever it was). The workers and consumers live happily ever after and resource allocation has adapted to price signals.
One important consideration in the above example is that if people want more yogurt and are willing to pay more, they must also be willing to go without something else. They only have so much money (so much of their own resources to allocate). That is why the resource allocation has to change. Now that might not be milk, per se, but it is probably something adjacent to it, like tofu. We can see how if the shift is from tofu to yogurt, the reallocation of resources might take longer -- people can't just take the milk consumers don't want and turn it into yogurt, they have to get more milk first, which means feeding more soybeans to cows and less to tofu machines -- but it still happens.
A simple example of a shortage is a situation where a virus affects a certain fruit tree, preventing it from growing (or, at least, preventing it from growing the desired fruit). Although people are willing to pay a lot for this fruit, and by extension are willing to consume less of other fruits or other foods, there is no way to turn resources over from the production of other goods to the production of this fruit. It might be that only a small number of areas are isolated enough to produce this fruit; they might all be turned over to it; but after that, there would be no elasticity in the supply of this fruit. Given what we know about the pricing, demand, ordinary cost of inputs for producing the fruit, the supply of this fruit before the virus, we must conclude that there is considerable demand which is not being met.
(Something else notable about the second example is that most of the new, elevated price of the fruit would go into some form of rent. The ground on which the fruit could be produced would be exceedingly rare and valuable, but the material inputs, labor, skill, &c needed for the fruit are the same as before; the new high price would mostly go to the ground rent or financing costs.)
Not everything is a perfectly elastic market. In fact, nothing is. For example, if I wanted to go out and hire 250,000 US-based computer programmers tomorrow, I would not be able to even if I wanted to pay them a million dollars each, since there are only 132,740 computer programmers across the entire US. So that would constitute a shortage of computer programmers. It would take many years to create the number of educational institutions, training programs, etc necessary to have that many programmers available to hire. The same could be said for many industries on a much smaller scale—how many people are willing to relocate to driving trucks in northern Canada? Probably not as many as you'd like, even if you had an unlimited budget. How many qualified airplane pilots are there in the world? Too few—we don't have enough training programs for them and mandatory "aging out" requirements have removed a lot of the pilots we already had. A lot of new training and education programs for pilots have been started in the past year, but they're going to take 4-5 years until the supply has increased enough that we're no longer in a shortage. (And although this is a heavy topic of debate between union leaders who say that there's no shortage and airlines who say that there is, I think the amount of investment in slow and costly supply increase programs is a good sign that there's at least some amount of supply constraint/bottleneck affecting the industry. It's hard for there not to be when safety and training requirements make the supply pool so slow to respond to changes in demand).
Yeah, that's either out of date or only counts people that report their title as "Computer Programmer" rather than "Software Engineer" or one of the myriad of other ways to describe people who develop/maintain software.
The recent estimates are closer to 4.4 million software engineers in the U.S. (~2.75% of the working population)
> The recent estimates are closer to 4.4 million software engineers in the U.S. (~2.75% of the working population)
Heh, we are probably more than the secretaries we replaced.
I honestly believe most companies are worse off using computers at all. At some size, you'd probably want some computer system for pay slips. But I am not too sure about that ...
Ah, yeah, I was just going off a simple Google. Probably ended up on the wrong BLS page. I agree it does seem low, a search for "Software Developer" turns up on this BLS page with much higher stats—1.5M developers.
Walmart paying drivers above the typical trucker's wage is not new, driving for Walmart has always been a "prestige" job in trucking that paid well and that drivers wanted to drive for. The standards are high, though, and drivers are held to account so the penalties for not living up to them can be severe
There's many jobs that are probably even worse and paid less. The only reason it's highly paid is because the competition for it is higher: "at the time it was because of a “shortage” of truck drivers."
The barrier to entry to driving a truck is a few months of training so the amount of people that can become truck drivers is quite large. However, the social status of driving a truck is quite low and there is a constant threat of automating the job away. Not to mention the terrible working conditions.
The barrier to entry for driving a truck is greater than just the time it takes to do the training.
To pass the training you need to be a competent driver. It isn't as easy as you make it out to be and the pool of people who can become truck drivers is smaller than you think it is.
Having a driver's license is basically table stakes for having a job in the United States. There are exceptions if you live in dense areas with good public transit, or you can work from home.
CDL != regular driver's license. Does an average driver know how to operate air brakes or prevent jack-knifing or what to do with a runaway engine? Trucking is a highly specialized job and requires more aptitude than ordinary driving.
Loads of people with driver's licenses can barely operate a sedan. Passing a CDL exam and not constantly getting into accidents driving a massive truck is a completely different thing.
Loads of drivers fret parallel parking. Imagine the difficulty of moving a 54' trailer perfectly straight into a bay at the bottom of a narrow ramp and not crushing anything in comparison to regular parallel parking.
I think we're talking past each other. I took "expected" to mean "expected by society in general". Teenagers are generally expected to get regular driver's licenses and learn how to drive a car (although many of them don't even do that anymore). It is not common for people to expect a teenager to have a commercial driver's license and know how to operate an 18-wheeler.
Now, is it possible that in the 1970s your dad had an unhinged boss who expected a 16 year old to reliably operate commercial trucks without any training? Is it possible your dad is an exceptional driver who managed to do this? Sure, both of those things are possible. Is it a reasonable thing to expect from any randomly selected teenager? No.
The kind of driving that teenagers are expected to do is wildly different from trucking. The biggest vehicle I've ever driven was a U-Haul and even that requires more focus and care than regular driving. Add another 25 feet of length, a trailer which can rotate independently of the vehicle, and tight timetables into the mix, and you're certainly looking at more skill than the average driver needs.
This reminds me of the time when coding was popular among high schoolers and people were saying coding jobs will be 0 as kids will be building mainframes in days.
It turns out its one thing to do a thing for fun or small periods totally a different ball game when you have to do it at scale.
Im guessing a lot of people who can play a chord or two like to imagine it can't be that hard to be a concert musician either.
Everything changes at scale and when it has to be done seriously.
Some might say the same about gluing together boilerplate in modern development
frameworks.
At the end of the day, skill is only relevant for competition within a given industry. The pay scale for any given field is based on the value they provide the employers (which is why grown men playing children's games are paid millions of dollars)
Your reasoning is somewhat sound. History has not been so generous. Source: son of a trucker.
Also consider that minimal academic education and minimal specialized training is often sufficient to do the work. So the supply of those willing to do the work has often exceeded demand, so there's naturally downward pressure on pay.
Working at Long John Silvers was also grueling work and I was always covered in grease and received minor burns from time to time. The job can be learned by almost anyone in a couple weeks though. Physical difficulty has almost nothing to do with compensation.
I don't mean to sound snarky, but do you actually believe that's how wages are often set, or are you describing an ideal?
These sorts of comments confuse me because they seem to be making an argument by explicitly confusing is from ought as an intentional rhetorical technique.
> do you actually believe that's how wages are often set
He'd be wrong if he thought anything else. Obviously supply and demand always determines price. There is no question on that front.
The only problem with the previous comment, perhaps, is thinking that this particular gruelling/isolating work leads to fewer people being willing to drive the trucks than actually happens. The reality is the average trucker running typical routes isn't really experiencing anything all that gruelling/isolating in the grand scheme of things, so it is a more attractive career than suggested. It's not a cushy programming job by any stretch, but it's still quite comfortable compared to a lot of work out there.
The general premise is valid, though. There are clear examples of other, albeit arguably more, gruelling/isolating work that can't get anyone to even consider the job without big dollar signs. He is just overestimating how undesirable trucking in particular is. For a lot of people, trucking is their ideal career.
But, in fairness, the comment was in reply to an article that suggests, at least for some routes, that there is trouble attracting drivers. So it wasn’t exactly off-base. The original article may be.
My father was an elementary school janitor and worked harder in a day than I work in a month. However, I make multiples of what he made (even adjusted for inflation, though jobs at the bottom of the pay scale haven't risen like that over the years)
All that said, I think the question isn't whether the pay is acceptable, but why Walmart pays so much relative to other companies, where the drivers do pretty much the same job.
An article with that title is supposed to talk about how hiring decent drivers is more profitable than random cheap ones.
This one seems to have missed the memo, and only gets there briefly once or twice, but the title does not in any way imply an information-free article.
I doubt their drivers are any better than anyone else's. Drivers are carefully trained and there are strict laws around driving trucks (much stricter than cars). They may do a bit more training than required, but there are other trucking companies that do the same.
Because as others have mentioned, WalMart cannot afford logistic problems. A driver who knows they cannot find a better job will not bother looking for one. Thus that driver won't quit and have to be replaced on short notice. Hiring new drivers is difficult even if there isn't a shortage.
I'd venture they are one of the safest[0] fleets out there which is a direct reflection on the quality of their drivers. Hell, I'd happily say their yearly average is better than the monthly stats from the last company I drove for.
The biggest determining factor on a driver is their safety record and if you can manage to not hit anything (you're not aiming for) over a long enough time period it is quite possible to get the good jobs.
Eh, it doesn't work like this unfortunately; pay is never a mirror of the dangerousness, the utility, or the dirtiness of the job. I would say that usually it's the contrary: the more essential a job is, the less it is paid.
No, pay corresponds with the skillset and how replaceable you are (moreso how replaceable). Walmart truck drivers are highly compensated because trucking is a lonely and relatively uninteresting job to do. Doing that for many hours requires a certain type of person and would mentally wear down most people.
Walmart requires a consistent level of output which they hope can be maintained by keeping truck drivers happy with high pay. Other trucking companies can afford to have some drivers leaves and thus pay them less because they have some leniency for delays which Walmart cannot/will not tolerate
Because they operate under a different business model that is willing/able to risk hiring amateurs. Not dissimilar to why FAANG will pay a software developer many hundreds of thousands of dollars each year all while Mom & Pop are hiring some kid to develop their software for $10 per hour.
Trucking is a massive industry. Most trucks you see on the road aren't mom-and-pop operations. If we want to just limit the conversation to giant retail operations, Amazon pays roughly 25% less than Walmart.
Amazon has a completely different business model to Walmart. If a truck doesn't arrive and the shelves are left bare, you're never going to know. They'll just ship the product off to you later when they can finally get the truck there. They can easily take the amateur hour risk.
Costco, which is likely the closest analog to Walmart in terms of scale and logistical requirement, pays the same.
Already, several comments saying how being a truck driver is a tough job (it is!) or "that's what they have to pay to get decent drivers". But whether the job is hard, isn't the question, and the second comment is sort of vaguely accurate, but just ignores the interesting part. From the article:
> One of the best jobs you can get in trucking is at Walmart. The uber-retailer says truck drivers can make up to $110,000 in their first year at the company. That’s twice the nationwide median pay of a truck driver
The interesting question is: why does Walmart pay so much more than is typical? Unfortunately, the article gives a pretty superficial analysis.
Edit: to forestall helpful comments, I am aware that businesses often make an effort to do things based on a kind of sophisticated analysis where they compare the upside of doing the thing ("benefits") to the downsides ("costs"), and then do the thing if the upsides seem to exceed the downsides.
The question is, why is it that this significantly above market rate is what Walmart thinks maximizes its benefits compared to costs?
The cost of not having a reliable supply chain is much more than they're paying their drivers. It's just good economics to pay more to reduce driver turnover.
Walmart has basically always been superior to its competitors at logistics. It has been one of their key competitive advantages for many decades. They have been a data monster heavily focused on logistics for most of their existence (I've been reading about their various logistics advantages for 30 years now).
Even if doing a thing is good for a competitor, that obviously doesn't mean that competitor will do said logical thing. Companies fail all the time because they're incompetent in one form or another (or many forms).
Any reputed tech company pays entry level engineers 2-3x more than the industry average. There's no complicated reason behind it. They just want the best talent. There are plenty of $50K/yr programmers out there but they aren't going to write the kind of code you want. I imagine it's the same for truck drivers.
This is not a thing in NL unless you do HFT programming. One of the reasons why the US pays so much seems to simply be that the economies of scale are there.
Top money in US is paid by tech companies (FAANGs and similar) who have virtual monopolies on their markets, and thus are printing money. They overpay for programmers to make sure they're not outcompeted on tech and retain their monopoly status.
Second crucial factor is the VC ecosystem unlike anything else in the world. VC-fueled startups (even late-stage ones, like Uber) will also often pay way above market for programmers, because they believe programming talent is the way for the startup to dominate the competition and become a money-printing monopoly.
Europe and rest of the world does not have anything like that. There's no serious software industry (aka "tech") there, neither large and estabilished nor VC-fueled. Programmers are seen as a commodity and not a source of competitive advantage. And, even if there are exceptions, they're not common enough to start bidding wars for top talent which in the US elevated the salaries of top ICs to $300k-$400k.
I think it's even more complicated than that. If you compare salaries for physicians (doctors) or lawyers there will be a huge gap as well. Even though there is no VC-funding, economy of scale or monopolies to speak of.
On the supply side of high salaries I think the economy of scale actually have some impact by creating a higher "floor". For example I would almost wager that every European country have their own Salesforce company (non-SAP web based CRM from early/mid 00's), but the e.g Latvian alternative never broke out to the wider EU. Whilst Salesforce conquered US and then the globe. This puts upward pressure on the virtual monopolists / VC-fueled companies that don't really exist outside the US. Imagine if almost every single B2B software company in the US spent their first 5 years only operating within a single state, and many never expanding outside.
But I think the "demand side" is even more important. Most European countries have lower take-home salaries for large parts of the salary spectra, definitely the top quartile. The reason for that are also numerous. But we generally have high taxes on an individual level, high payroll taxes, high VAT etc. In exchange for that we have large welfare states with larger redistributions both across individuals and across time for the same individual (paid parental leave, pension etc).
Then it's always "... well including the health insurance and retirement package which we estimate costs us $75,000/yr." So actual take home wage is never near $110,000.
Is it significantly above market rate when adjusted for experience level and overtime? They say "make up to" which is meaningless (maybe that's a 20 year driver hired for a particularly unpleasant route in a tight market). And I know some truck drivers can get overtime doing extra shifts which can make up a lot of their income. I'd like to see a real comparison between the experience level and kind of driving (long/short haul, day/night whatever other industry divisions) vs the median income rather than the meaningless comparison with the "up to" number before drawing any conclusions about how well they pay.
I would guess that WalMart assigns drivers to a route, everyday they go from the warehouse to the same WalMart(s). Most days there is no overtime - they keep every walmart within a days drive of two warehouses so if one warehouse fails (fire...) they can shift everything - that means some drivers will need to go to a different warehouse and then they need enough slack to pay for that extra overtime without running out of time in a day (a day is less than 24 hours for drivers)
Walmart has a lot of SKUs made just for them - and that's not even getting into the house brands. I bet their logistics works quite a bit differently than the average retailer.
Cashiers are easily replaced, and don't have to pass DOT drug tests or maintain licensure - a CDL is a big deal, and even minor traffic violations including while driving a personal vehicle off the clock can impact it.
You can actually see something similar in the pharmacy market. Pharmacy techs are both very in demand and ironically also often leaving the profession, because many are just tired of the every increasing workloads (perennially short staffed...) and deteriorating conditions.
The general standard in the industry is pretty bad. My brother-in-law, who has a CDL, tells me somebody wedges a tractor-trailer into the Tompkins Street bridge in Binghamton about once a month because they ignore the clearance warning signs.
My understanding about Wal-Mart is that trucking for them is a good job because you get to sleep in your own bed. That is, the distribution center is close enough to the store that you can drive for them and live a normal life, it's not like driving trucks all the way across from the US.
Normal trucking companies are always having workers say "take this job and shove it" and then struggling to get their cargo moved, truckers know they are in demand enough they can quit without notice, take a few weeks off, then start up at the next place.
The point is that a delayed truck is very expensive, so it ends up being cheaper to pay efficiency wages and have good working conditions so people aren't constantly quitting and therefore delaying your trucks.
Wal-Mart was also a pioneer in just in time delivery for retail. If your supply chain is reliable you don't need to pile merchandise as high in your stores and your warehouses. People will drive an hour to Wal-Mart(s) in the most rural locations and in that case it is a real bummer to be out of stock.
I'd contrast that to K-Mart where I went to get 3 digits for my mailbox and could only get 2 of them so I didn't buy any.
Not if high turnover means slower deliveries which likely effect everything downstream (or upstream).
When you don't pay well, you probably miss out on the hires that learned all the skills, what corners to cut, what corners to not cut, what actual lead times are, etc when hiring.
Outside of Silicon Valley, not a lot of companies will pay you less under the auspice that the fringe benefits somehow "make up the difference" and Walmart is about as far from startup culture as you can get.
Aside from that in order to drive one of these trucks, you require a CDL, which you have to get on your own, and maintain on your own, all at your own expense. The pay is there to attract talent from a limited pool of available workers and to ensure they show up to work on time and make deliveries on time.
It would be against their own interests to try to cut corners and pay drivers less based upon these types of "benefits."
Because possibly they are aware that their shops need the goods for them to stay operational. They may also realise there are other areas of the business they can squeeze. They may realise that having a few missed shipments costs a lot more than the wages saved.
I also think part of equation is retention. You want to keep the drivers as them leaving might disturb deliveries. Specially if they are JIT. Inventory not at store does not sell.
Walmart is one of the few trucking companies IIRC that slipseats (shares) their sleeper cabs, which means you're continually going to be changing the truck you drive and live in weekly. That kinda sucks.
I agree the alternative would be nice, but for years I lived out of a different hotel room every week (for work). I didn't mind it. I assume it's similar in that you pack light, and only bring what fits in your luggage so you can pack up and move on quickly at the end of the week.
Although I never used either of those services, that is still a good point -- my point is completely irrelevant since the situations aren't exactly the same.
I had a gig for a while where we slip-seated the trucks and, yes, it did kind of suck. Mostly because nobody cared about the trucks and they got tore up pretty fast. Plus, you always have that one person who does stuff like leaving trash all over the cab -- the chicken bones all over were my final straw on that one, we had words...
Malcom McLean, the founder of Sea-Land (sold to Maersk in 1999), who commercialised container shipping, believed strongly in that concept. You cannot run an efficient operation if drivers are allowed to have personal trucks.
> You cannot run an efficient operation if drivers are allowed to have personal trucks.
I'd be interested in actual data. Employee satisfaction/retention and associated hiring costs and increased maintenance/higher failure rates because no one has "ownership" over the truck aka diffusion of responsibility happens are where I could see that calculation break apart.
I think part of the philosophy is the idea that „personal ownership“ will conceal structural (maintenance) problems.
It’s similar to lowering inventory. Sure you can run into problems with smaller buffers, but at least you see the problems and have a chance to act accordingly.
A lot of people aren't factoring in that truckers can work 60 hours a week and are exempted from overtime pay and a lot of companies paying the big bucks in trucking are paying that much because they are maximizing the hours to minimize driver count (health insurance, benefits costs don't scale by hour).
Another example of how the American healthcare system is working against society’s best interests.
You don’t want all truck drivers putting in the maximum hours humanly possible. It’s a safety hazard. But having to pay for health insurance makes corporations try to optimize for this at the expense of human lives.
> You don’t want all truck drivers putting in the maximum hours humanly possible. It’s a safety hazard. But having to pay for health insurance makes corporations try to optimize for this at the expense of human lives.
... what?
First, I don't understand how paying for health insurance means they are trying to get the most hours out of their employees. I guess you could say thats somewhat true for literally every overhead cost including social security payroll taxes, training, heating buildings, etc. At best, it seems a little true in a very indirect way so why the laser focus on health insurance?
Second, it its truly a safety hazard then it disincentivizes employers from doing it.
> First, I don't understand how paying for health insurance means they are trying to get the most hours out of their employees
I'm not OP, but my take: the health insurance cost of hiring a driver is fixed, regardless of how many hours per week they drive. Therefore, the more hours they drive, the more the employer's "bang for their buck".
> Second, it its truly a safety hazard then it disincentivizes employers from doing it.
Health and safety regulations are written in blood, and exist precisely because employers need to be forced by law to maintain safe working conditions for their employees.
> employers need to be forced by law to maintain safe working conditions for their employees.
Probably less true in trucking, where the leading cause of worker injury is road accidents. If, say, a roofer falls off a roof, the only damage is to the worker, but if a trucker crashes badly enough to get injured, the truck and cargo are likely damaged as well. Truckers and their employees should be more naturally aligned on safety issues.
For employers who are big enough maybe. A big percentage of freight though is handled by small employers and owner operators.
If a particular unsafe practice produces an extra $1 million dollar accident every 200k hours of driving time, a small one man operation isn’t likely to see that happen over the course of a career. And even if they do, they may not have enough data to notice the correlation.
A company with 1000 drivers will likely deal with it once per month.
But keep in mind, even the least-safe driver will get 99% of the loads to their destination. Dealing with accidents is a cost-of-doing-business issue for large companies.
This is one of those situations where a theory reasoned from first principles fails to match reality.
Back in the 20th C., drivers frequently took amphetamines in order to spend more time driving. Forged log books are a significant incentive for the development of electronic logs. I've seen many stories of drivers told to break hours-of-service regulations by dispatchers.
And the hours of service regs are insane (https://www.fmcsa.dot.gov/regulations/hours-service/summary-... - keep in mind "on duty" != "driving" but waiting for loads and such, which the driver is not paid for) largely to maximize the number of hours driven.
Why isn't it illegal to force someone to log/elog overage hours? Isn't that a fifth amendment violation as you're forcing them to incriminate themselves? Seems elog should be challenged.
By that logic any law requiring disclosure of any kind would be a fifth amendment violation.
You are not required to participate in trucking, nor is it a right to do so. Choosing that career (and it's associated licensing) comes with responsibilities...
Here's an example. You don't have a right to a short barreled shotgun (per US v. Miller). But you can get one by buying a stamp. If I'm a felon applying for the stamp would be incriminating, thus courts ruled felon cannot be guilty of not disclosing they have the shotgun. So they get to have it and never 'log' it even though everyone else must.
It's only violating the fifth for the part where you must admit to crimes, not all logging. I'm talking about hours logged past the maximum.
That doesn't necessarily mean there's a disagreement about safety between workers and supervisors, it could just as well mean they both disagree with the regulators about the acceptable level of risk.
This would make sense from first principles, because unsafe truckers impose externalities beyond the direct risks to truckers and their supervisors, by making the roads more dangerous to the public.
Most semi-trucks cost about 200 000 USD. I couldn't find the value of a single truck load anywhere but there's a thread here[0] where folks are speculating it takes about 30-60 trucks to fully stock a Walmart, and a second thread where folks are talking about the likely cost to buy everything in a Walmart[1], which converges on low seven figures.
Let's maximise the truck value with these constraints, so $10M/30 = 333 333 USD.
Then we could perhaps estimate that the value of each truck is somewhere around 550 000 USD.
How many trucker hours is that? Well, let's take the number from TFA which is 110 000 USD/year, assuming an average of 10 hours per day[2] (50 hour weeks) for 50 weeks per year (even truckers need a holiday), we get a total of 2500h/year. That means that one Walmart truck is worth 12,500 trucker hours.
The 'involvement rate' for crashes resulting in injury per 100 million miles was 36 in 2021 (i.e., approx 1 every 2.7M miles).
In 12 500 hours at 45mph[2], a trucker will travel around 562 500 miles.
Wherever I've had to make an assumption, I've leaned towards it being less expensive to not have a crash (high end of value of stock in the store, low end of number of trucks, choosing to 'total' the truck in case there's an injury, etc.).
However, this very basic and unscientific examination it does seem to suggest that your immediate conclusion that the employers of truckers should be economically aligned towards protecting trucks and truckers is not supported by data.
> Second, it its truly a safety hazard then it disincentivizes employers from doing it.
When have employers ever cared about safety except when mandated by law? These things were all legally codified because people got hurt or died, not because companies wanted to be "nice"
Truck drivers don't put in the maximum hours possible; their maximum allowed driving time is heavily regulated by law and increasingly enforced by remote monitoring.
The ELD (electronic logging device) reports this data to the trucking company. It is up to them to enforce driving time. However, law enforcement can request these logs during a stop or inspection and the ELD must display this on screen or a print out. https://eld.fmcsa.dot.gov/
Trucker forums are full of ways to cheat the devices like simply pulling a fuse or replacing it with one that's been burned out, and police can't / won't check electronic logbooks because it's too much of a hassle for them.
The companies installing the electronic logbook devices are the same people who have incentive to cheat the system. So do you think anyone notices, complains, or gets disciplined when "the fuse keeps burning"?
Do truck drivers count the hours they spend waiting to be loaded or unloaded?
Sure they have breaks, but is it really spare time of you're stuck in a truck in the middle of nowhere waiting for time to pass so you can drive again?
You mean like how hospitals were told to stop overworking their residents by the goverment, and told the residents to fake their timecards?
The industry shifted to electronic logbooks and while there was initial resistance, truckers quickly learned they could just pull fuses, or cover GPS antennas...and that police officers would look at paper logbooks but didn't have the equipment or interest to pull electronic logs.
Truckers in the US do whatever they please, and the rest of us pay the price when they crash and kill others or dump toxic crap everywhere.
Just a side-note: My step-dad was a long-hauler when I was a kid, before any of the "maximum hours" regulations. The stories he used to tell me are terrifying. Basically, back then, all the long-haulers were alcoholics who drank coffee and popped pills to stay awake and driving for as long as they could. Dudes used to have contests to see who could drive the longest. Driving coast-to-coast on a straight shot was totally common. There were union rules around "maximum hours", but dudes wanted to get paid, so they just kept driving. Drunk, and on pills.
If they're paid higher than average, then how could a union fight to get them higher wages when they aren't doing it for the unionized competitors that have lower?
And also per another comment here, they require an unblemished driving record. So if the worst concern of unions came true, that they can make it hard to fire bad performers and require hiring "their guys", then drivers with blemished records can make it in and stick around. That means the good drivers currently employed may see their value drop comparatively and likewise their ability to demand better pay.
As it stands it seems like the current drivers then have the benefit of being considered best in industry and may prefer to gate-keep and not unionize as a result in order to protect themselves.
I wonder if other companies that want to fight unionization should do similar: hire top performers and pay them well :)
>I wonder if other companies that want to fight unionization should do similar: hire top performers and pay them well :)
I mean this also applies to the rest of Walmart, or at least it did
In high schoool and college (98 through early 00s) at age 16 I initially worked at a local grocery store chain that was unionized making minimum wage. They went out on strike for a month and came back to just a ten cent raise. Not long after that I went to work at Walmart making about 40% more, with a 10% discount on anything I wanted to buy in the store
Working conditions between the two were not much different, both were pretty transparent on scheduling, job duties, and the like
Now, I'm pretty left wing and I support the right to organize without any restriction, but I probably would've voted against a union if the UFCW had come to my Walmart store asking for signatures based on my prior experience with them
Does that mean unions have a place? Absolutely. We would not have the meager protections we have today without unions, and they serve a deterrent against employers running amok, but yeah treating your employees somewhat decently is plenty to keep them at bay
This is exactly what union usually work for though. High barrier of entry combined with high salary. It's just that union fought to keep it that way instead of at the whim of company.
But still, looks like this is why software engineers are very allergic of union. The same environment already guarantees those properties and adding union on top only makes it sour. That environment's disappearance lately make union possible once more.
Here is the money quote that makes the most sense to me:
“They wanted to pay them good money because it was the absolute core of their, of their business — to get this stuff from the distribution center to the store at precisely the right time with no screw-ups,” Lichtenstein said. “That was crucial.”
I am sure that WalMart demands full compliance with all regulations and is very exacting in pick up and delivery times. Likely drives are doing the same routes all the time. A lot of drivers would find that boring.
Most drivers are running a fixed route. You (or often you company) has contracts to make regular deliveries. Most companies that ship something ship the same thing every day to the same customers.
that said, there are a lot of deliveries that are not the same thing to the same place. while they are a minority overall, there are still a lot. If you work for a big national shipping company (WalMart is not this even though they are national) you can ask for a delivery to anywhere - they always have a single delivery to some random location. Though if you want to go to rural states - many other drivers grew up on a farm and truck driver is one of the few well paying jobs they can get without a degree on so there is a lot of others wanting that. (If you want to go to a big city there are plenty of delivers and less drivers with reason to want them)
Many drivers like driving a familar route because they know what to expect. They know where the low bridges are, they know which roads are designated truck routes, where there are difficult turns, they know which exits have fuel/good food/shopping/parking or are a safe place to stop to get out and take a walk, etc.
In the late 90's, my dad was a screen printer and did a bunch of big runs of garments for Walmart stores. He'd built a good size business, doing regular jobs for Disney, action sports, NFL, etc, building a shop that usually ran two shifts of hundreds of employees. It's not an exaggeration to suggest that if it had a screen printed image on it, we probably printed it.
> very exacting in pick up and delivery times
Well, for us, not exactly. For our last contract with Walmart, there was a lot of language about timing. If the driver arrived and the order wasn't ready for pickup, we'd be penalized for every hour of delay. The penalties were such that you could end up losing crazy money on the job if you weren't confident about your abilities to deliver on time.
Not a big deal for us since we were tight, and could easily handle it.
Then Walmart arrived a day early. The driver had made a choice to stop for us first, which, after pulling up the contract, we realized it allowed for that. Our lawyer had determined it was vague enough that the agreed delivery date would prevail, contractually. Which is probably why we didn't notice that the contract also said the pickup clock started the minute the driver arrived, and that was also the official pick up time. Had we caught that during contract negotiations, we'd have refused the terms. But we missed it.
We weren't a small shop. We already ran two shifts, and quickly needed to pull in a third to be able to finish in time to get any profit out of the job.
We almost did that last contract with zero profit, and refused all business from Walmart after that day.
Thing is, I've heard of similar stories where Walmart would do similar tricks with produce from farms. Whether myth or not, I don't know, but I know with certainty how they treated us. There were probably incentive structures in place for drivers to show up early, and some of them had the balls to do it a lot earlier than others. In this case, they could give the driver an bonus for his better than on-time averages, then "buy" goods worth a retail $5M+ for the cost of the driver's salary and bonus, plus whatever the supplier (us) managed to keep after penalties.
Only in the wealthiest cities and neighborhoods, which is a very small share of the total. There's almost 20,000 cities in the USA and only about six of them have an average living wage above $100K.
All things considered, Wallmart is a pretty decent company, at least for workers, and even more if you compare with Jeff Bezo's slave driving operation.
No, it most definitely is not. Walmart (one 'l') is consistently in one of the top employers with employees on SNAP. So, if you live and work in the US, you're subsidizing Walmart's employees.
SNAP is based on income, so anyone that's properly employed should be making too much money to qualify.
So is this purely a communication problem, or is there a real a wage/hours problem?
If they're offering enough hours and the employee is choosing to be far under full time, then we should phrase things more specifically than "employed".
But if anyone that wants to be full time, or is full time, doesn't meet the income threshold, that sounds like Walmart taking advantage of insufficient worker protection.
SNAP eligibility is based on household net income. A father of 2, with an unemployed spouse, and medical bills could be earning vastly more than someone single and debt-free, while still qualifying for SNAP when the latter does not.
It's silly to put the oneness onto their employers when circumstances can vary so wildly.
I can't edit my remark, so I'll add to it here: Your comment history shows a pattern of sarcastic commentary and quips instead of good faith statements of opinion.
If Walmart laid off all their employees and replaced them with half as many employees that were paid twice as much, you'd be subsidizing even more people's living expenses. Yet somehow Walmart would be a more ethical company because no of their their own employees would be on SNAP?
So if you don't have the skills to be worth twice the compensation, you don't deserve a job at all and it's the taxpayer's responsibility to pay for your expenses?
What a weird thing to read into my comment. No, I do not think that. Skills didn't even come up. And this isn't the only employer that exists, nor is there a fixed supply of job money in the world.
Also, paying half as many people twice the wage is in aggregate roughly the same as cutting typical work hours to 20 per week while maintaining the same pay per week. Where's the downside for the employees?
And in particular for the SNAP aspect, the whole point of this discussion is that the current wages were not getting those people out of the SNAP income range, so the taxpayer cost is the same even if Walmart fires all of them and replaces them with nothing.
If Walmart is bad for employing people who rely on SNAP, then wouldn't it be the same be true for any other business that does the same?
> Also, paying half as many people twice the wage is in aggregate roughly the same as cutting typical work hours to 20 per week while maintaining the same pay per week.
My point is that it's not roughly the same at all. In one option everyone is still employed, and in the other half the people don't have a job. Obviously, if something magically doubles everyone's productivity, that would be a good thing, but you have to apply that on both sides of the comparison.
> taxpayer cost is the same even if Walmart fires all of them and replaces them with nothing.
Walmart minimum wage is $14 now. Walmart workers who are single and childless or married to a working couple who otherwise wouldn't be eligible for SNAP would become eligible if they lose their jobs.
> If Walmart is bad for employing people who rely on SNAP, then wouldn't it be the same be true for any other business that does the same?
I didn't say they're bad. My claim is that if they paid twice as much per hour, for half as many people, that would be an improvement.
> My point is that it's not roughly the same at all. In one option everyone is still employed, and in the other half the people don't have a job. Obviously, if something magically doubles everyone's productivity, that would be a good thing, but you have to apply that on both sides of the comparison.
If people can get paid the same amount while working half as many days, most of them will work fewer days. Half of people would not be unemployed. And for the people that would end up unemployed, more jobs will fill the void.
We don't need to push down wages to keep people employed.
There would be a lot of chaos if every single company doubled wages to low level employees on the same day. But we don't need to worry about that contrived scenario.
> Walmart minimum wage is $14 now. Walmart workers who are single and childless or married to a working couple who otherwise wouldn't be eligible for SNAP would become eligible if they lose their jobs.
I think the vast majority of them would find new jobs.
Or we could only apply this policy to future Walmart hires or something.
> If people can get paid the same amount while working half as many days, most of them will work fewer days. Half of people would not be unemployed.
I gave a simple thought experiment, but you're trying to escape making a trade off. Yes, in the real world, people value free time, you can employee people part time, and there are other employers besides Walmart, but that's outside the point I'm trying to make. If we're going for full realism, Walmart would also go bankrupt if they laid off half their workforce and paid the rest twice as much.
I'm not trying to escape the trade-off, I just don't think it teaches us anything we can apply to the real world.
If we keep things as simple as possible, and assume those people stay unemployed, then Walmart should make as many jobs as possible at absolute minimum wages, maybe even below the legal limit. But if we're talking about semi-realistic scenarios, then they should not do that.
This moral framework can lead to all sorts of suboptimal outcomes, such as employer healthcare mandates that are subsided with tax incentives (though some other interventions, like modest minimum wages can help people without distorting the economy).
This is a bad way to measure things because SNAP benefit qualifications are measured by annual income and number of children.
Walmart could pay shelf-stockers $50/hr, but if they have 6 kids and work 20 hours a week, they would actually qualify for food stamps. Does that mean they're underpaid at $50/hr?
Let's also remember that in the real world outside of our bubble, 20, 30hrs week jobs are basically what a single mom with limited access to child-care can afford to work.
Is it worse or better for you that these same companies will purposely schedule less hours for workers so they don't meet the legal threshold to be considered full time employees?
If you are the single working member in a family after a certain size, you may still qualify for SNAP. Usually, not only in the US, but in most countries with similar well-fare programs, the eligibility is determined by the household income, not the individual.
Also, Wallmart have plenty of non full-time jobs, which tend to attract a lot of single mons that have no access to child-care, and this probably increases the probability of those employees being eligible to SNAP.
The media loves to drop those kind of number without context for page-views.
The Walton family has consistently been the wealthiest in the world over the past few decades (currently ~$250B networth). If there was still just 1 Walton, Elon Musk or Jeff Bezos would never have held the #1 spot. Greedy as they are, the Waltons have always been greedier.
Because Walmart is what happens when we value productivity over dignity.
The most important things in life are our time, our relationships, our health, our self-determination, basically all subjective and individual experience. Western ethos substitutes those intrinsic values with external "objective" measures rooted in necessity, fear, dogma, etc that evolved over eons of suffering and exploitation under various forms of colonialism where the winners wrote the history.
The ramification of these mismatched attentions/intentions is that we live in a world obsessed with optimizing efficiency, creating a strong work ethic, taking on ever-more responsibility and monopolizing nearly the entirety of our time over a career. Instead of innovating, automating and empowering the workforce to share in the risks and rewards so that someday work is not equated with basic survival.
I believe that the most important thing we can do is disrupt the status quo. In this case, that means thinking outside the box to whatever level is needed to equalize pay between a custodian, a retail clerk, a truck driver and a CEO. The framing of ideas and barriers to entry which prevent that leveling are the root cause of wealth inequality and represent the primary source of injustice in our lives.
If someone happened to win the internet lottery or buy Bitcoin at $10 like I didn't, and is wondering where to invest, stop looking to foreign markets or whatever is over the horizon, and ask what your parents and loved ones sacrificed to get you where you are today. Then ruthlessly work to remove the obstacles they faced for future generations. Anything less is not "real work" IMHO, it's just an ever-growing shrine to your ego.
I got downvoted a bit, so I should probably add some context to my point:
I moved furniture for 3 years in the early 2000s after getting my computer engineering degree so that I could make rent while writing shareware games, to hopefully win the internet lottery and be able to work on AI someday (which never happened - I'll explain below). It was backbreaking work and I came up with a new invention almost every day that would make the job easier. Some low-hanging fruit would be to require sun awnings over ever door on the trailer and require that truck drivers to carry at least 2 hand trucks (dollies). Beyond that, any number of Roomba-like devices would largely eliminate the human element of packing/loading/driving/unloading/unpacking.
Except that nobody wanted to innovate anything. I came to realize that one of the attachments that people form is to their own suffering. Being a lumper (furniture mover) becomes an identity like coal miner, with its own lingo and culture. We spent most of our days laughing at the clueless yuppies who could never do our job, and the poor rich people who had learned nothing from life because they didn't tip. It's like being in boot camp every day and then being asked to carry water for someone because they don't like to hold things.
Anything else than what we were doing would be an easier gig, if it weren't for the current gig preventing our escape.
---
Anyway, I was lucky to never get seriously injured on that job, but I came away from it forever changed. In many ways the futility of it destroyed my will to work. Not because I was lazy, but because after paying my dues I realized that all labor represents ineficiency. It occurs when the boss isn't creative enough to find the technology that avoids the need for the labor in the first place. Extending that thought to its logical conclusion, money itself represents inefficiency, because if people have the knowledge and resources to support themselves, then they don't need money to pay for things.
This is what I meant above by a win never happening for me. I saw through the matrix too young, which made concepts like investing anethma to me, because I saw that all profit comes from skimming productivity from workers. I independently derived what Karl Marx was saying, before I even knew what socialism really was. And nobody wants to hear about any of that stuff in hypercapitalist USA.
The reality I came from was a patriotic/patriarchial construct where the best we can do is suck it up and work harder tomorrow, but tomorrow never comes. Like the opening scene of Avatar, where the suck (a term borrowed from Jarhead) and unobtainium were more compelling than a tropical paradise. Shows like Yellowstone touch on this - that the hardest workers are paid the least, and that bosses are locked into political games of the status quo beyond their control that they themselves may not even agree with. Wealth inequality triggers our projections, so that the wealthy think they work the hardest, and workers think they are paid well.
Today we're seeing that dissilusionment with the workaday world in all facets of life. Starbucks workers know their jobs could be automated, but then they wouldn't get paid. Uber drivers know that self-driving AI will get them caught in a race to the bottom for pay. Amazon workers know (at least at a subconscious level) that their pay is locked to wages in China. We're all pinned down by our current gigs to the point that they have consumed our imaginations, so that all we seemingly do now is fight amongst ourselves in a zero-sum game.
So, if you've followed this far, the solutions are obvious and apparent:
* Stop equating merit with financial success
* Give labor a 50% seat at the table on every corporate board (like Germany)
* Encourage automation over "hard" (pointless) work
* Prioritize labor-saving innovation over profits
* Stop skimming the profits of labor for building skyscrapers and pork barrel projects
* Legally require that bosses and workers swap roles for at least 2 weeks out of the year (controversial, I know)
* Run doctor's orders by nurses (in all supervisor-assistant relationships in all jobs)
* Prioritize equal pay and do the "real work" of reforming the workplace in every way needed to make that possible
* Have tech companies listen to their engineers again instead of just their designers/partners/investors
* Most importantly - transition to automated robot labor and UBI
Now, these are the first 10 things I thought of. There are hundreds/thousands of similar insights from feminism and labor relations (see Martin Luther King Jr). It's not so much about learning what to do, as identifying injustices in the system and reforming them. This is what progressivism and wokeism are about.
I understand that half the people on HN may not identify with what I am saying. They may say that these ideas might hold back the "job creators" propelling innovation forward. But I don't think the two are mutually exclusive. Happier healthier workers are more productive. And wealth inequality is so high that adjusting tax brackets for UBI would cause a reduction in taxes for anyone making under the US GDP per capita of $75,000. Note that the median income is around half that, so most of us are already having half of our productivity or more skimmed via low wages and taxes.
I've tried to write this as objectively/conservative and old school as I could, in the way that one might appeal to labor in the 1950s at a republican convention. Because I think that the left is generally onboard with these measures. The difficulties aren't in principles, but communication.
There is a narrative that Wal-mart pays low wages, I think its quite apt as most positions do pay quite low, I worked at Wal Mart while in college and saw it first hand. A few things to note, certain positions do pay well, store managers for one, I know for a fact that over 20 years ago certain store managers would see over $300k in yearly compensation. In addition once I got into tech after college I worked with a few walmart.com ex-employees, and these employees stated that part of their bonus was tied to a percentage of sales walmart.com made and they said the bonus pay was wildly lucrative. So Wal Mart does pay well in fact if you are in the right position. Considering keeping your shelves(and online distribution centers) stocked is the lifeblood of the company it behooves them to have a healthy circulatory system and not have drivers who do not deliver on time or get into accidents.
14,000 out of their total number of employees is such a drop in the bucket though. If you can get hired as a Wal-Mart trucker, from what I understand, you're the best of the best. Also, consider there are like 3.5 million truck drivers in the US - only a tiny percentage of those can get jobs at places that pay as well as Wal-Mart. And Wal-Mart has 1.6 million US employees alone, so you're talking less than 1% of total jobs when you say 14,000.
Walmart is somewhat notorious in the OTR trucking industry for having high wages, but very high barrier to entry. You need a near perfect driving record among other things.
OTR trucking overall pays pretty well, but it's an extremely physically and emotionally taxing job that doesn't really get the credit it deserves. How would you feel if you were "home" for a weekend every 2 weeks and living in 20sqft the rest of the time?
> You need a near perfect driving record among other things.
Absolutely. If a driver is at fault in an accident, Walmart will get sued for $zillions.
I once knew a middle aged man laying tile. I asked him why was he laying tile for crap wages. He said he lost his trucking license because he had a DUI (not while trucking). Doing construction was the only job he could get. He was quite bitter about it.
Wow, if true, that is harsh. If you made a mistake at 18 or 19 years old, then you are condemned for life to never hold a CDL (commercial driving license). That doesn't see fair.
I built my own house because almost every step was more expensive hourly labor than me writing software for an hour instead.
Even the lower rate such as concrete laborers wanted 100+ an hour.
I suspect the low pay of many of these trades is just a symptom of housing and construction being the number one money laundering industry and thus tradesman are always saying they're making nothing while simultaneously asking 100+ an hour cash and working full weeks.
Id bet the BLS income reports are off by like 50+%.
I think you mean tax dodging instead of money laundering there. Though, if they are really succesful dodging taxes, they might need to do some money laundering later, too.
Where is your house? Those rates are not typical nationwide but I know a general contractor who is involved in construction on the islands near Bellingham and the rates there are like what you describe.
I agree that in my experience a lot of contractors would rather deal with cash and it isn’t exactly a secret why. I got a significant all cash discount on a new roof.
In college I had a friend whose father was an OTR trucker. Absolutely destroyed his back. He had back problems when I first met the family and a few years later he was on medical leave and unable to work, and he was maybe in his late 50s.
He wasn't driving for Walmart of making that kind of money then, so I hope he was able to move into a different career that didn't do further damage.
It's not a job I'd want to do. Ergonomics aside, I find driving to be very unpleasant in large doses. Having to put up with traffic, shitty drivers, weather, and everything else 8-12 hours per day is not my idea of a great time.
My mother was an OTR trucker during most of my teenage years, including driving for Walmart under contract (so not paid amazingly well, but regularly interacted with the Walmart employees at the DC in Tomah, WI). It's not always back breaking work, but access to (healthy) food is a major issue. For Walmart specifically, there's not much physical effort involved besides lowering the trailer landing gear, which is almost always done with a manual crank. The Walmart backroom staff handle unloading and the DC staff handle loading, which would be very very taxing to do constantly.
First, your work day is almost completely sedentary. Second, you are not near friends, gyms, fields, or other systems which promote healthy activity outside of work. While diet is important for all of us, it is especially important in this circumstance.
"Healthy foods" are going to be largely inaccessible through long sparsely-populated stretches of the country. Even where they are available - in markets, fruit stands, etc. pulling your huge truck off the road to park is expensive (in terms of time) and difficult (in terms of space). Truck stops have the infrastructure for your truck. But their food selection is mostly junk.
They generally don't have access to a kitchen or a large refrigerator, so meals tend to either be from a restaurant (where most restaurants, good and bad, are arguably not healthy unless you severely portion-limit) or something that can be reheated in a microwave or portable air fryer. In combination, this results in a not quite healthy diet.
In a truck you can't just... drive anywhere. There are designated legal routes that you can't deviate from under most circumstances. The vast majority of food you have access to as a trucker is gas station/truck stop food and fast food attached to truck stops. You have limited cooking options in a truck, maybe a small waffle iron, rice cooker, or microwave. Most won't have room or power for something like a refrigerator (some might, it depends) so keeping non-dry food isn't really an option.
What is it in particular about truck driving that is so bad for your back? I hear this so often.
Please don't reply "sitting down all day". I have been doing that for more than 20 years in a comfortable office (mostly Hermann Miller Aeron), and my back is fine.
My guess: The vibrations of the truck are awful for your bones.
Do you ever get up? Maybe turn your head from side to side, or stretch your legs out under your desk? Or go to the bathroom whenever you want?
Driving freezes your body into one position for hours on end. Doing it in a car for a few hours on a road trip makes my neck hurt. Doing it every day would be deleterious very quickly.
I work at a computer at a desk, but the ability to stand up at will just to use the toilet makes a big difference. Can’t do that driving a truck.
Store Managers are a very different type of pay structure though. They're more like someone from Corporate vs Retail. They get paid massive bonuses based on numbers their stores hit.
I worked at a few Home Depots and IIRC the store managers were clearing 150-250 while the assistant managers I think were in the 60-80k range. Then us floor staff were 9-15, maybe 20. This was 2008ish.
I remember the biggest HD in my state or somewhere the manager was getting I think 500k-1mil+. You can infer it from the numbers the store does and their bonus percentage whatever that was.
My mom was an HR director there so corporate as well and she made somwhere in 130-200+ not sure exact.
>They get paid massive bonuses based on numbers their stores hit.
Isn't that ... good?
The demographic in every region or neighborhood is different and has different tastes, incomes and budgets, so it's your job as store manager to identify the needs of that demographic, and order merchandise and organize it on shelves, run sales, etc. in order to move as much of it as possible to maximize sales and profits. Sort of like targeted advertising but IRL and less privacy invasive.
Paying based on this seems like the only way to incentivize this performance.
In university before co-op, many years ago, I worked for home depot part time. the line employee profit share was really bad. the management profit share was better. They understaffed my department for long periods of time to make their numbers look better. They were making $15k/day in profit on my department but they wouldn't schedule a second employee so that there was someone there to help people when person #1 was on the saw, on the forklift, or covering lunch for the next department over too.
I quit mid june after I realized they weren't hiring/scheduling more staff for the summer even though every day was very busy, constantly running between helping customers and taking care of other things.
There are a lot of ways to make profit and show good metrics that aren't good for line employees.
>There are a lot of ways to make profit and show good metrics that aren't good for line employees.
Sure, but this is in line with every major (European) tech company I ever worked at. Pay employees peanuts and pay senior mangers amazing, therefore you were incentivized not to do well as an IC, but to put up with bullshit and fight your way to climb the corporate ladder to management, and then exploit the other poor schmucks who come below you with the same perverse incentive structure.
Yes this leads to a huge turnover, unhappy workers, and to a lot of arguments, back-stabbings and fights. But their stocks were always rock solid and managers were always wealthy so I guess they saw that culture as a net win. It seems to be the M.O. with ever major company everywhere, I think it's called the "GE model".
Paying ICs at the bottom great wages and incentivizing them with stock, is mostly unique to US/SV and new-age software start-ups from the Google/Facebook era, but rare everywhere else.
Ye it is strange that such anti-intuitive management style pays off. I have no clue why.
I got this feeling that what's most important for a Big Bad Company is to be able to get well of with management of other Big Bad Companies to be able to land contracts.
>Ye it is strange that such anti-intuitive management style pays off. I have no clue why.
It works because it prays and exploits several flaws in our society and in human psychology like greed, wealth inequality, conformity of the masses to cultural norms, fear of missing out/of being left out, and the crabs in the bucket mentality, which leads to a rat race to the bottom form which it's difficult to check yourself out as an individual if the majority does it and is heavily vested in it.
This isn't something big bad corporations have created, it s just something that has existed for hundreds of years, they're just exploiting. The same mechanism and behaviors were in place during the communist rule in my home country 35+ years ago, when people were fighting to climb up the party ranks, because that's what gave you the best QoL. Now it's climbing the corporate ranks.
Because it's cheaper to compensate one manager 10x average (and get the best candidate) than pay more to hire an entire team of more skilled ICs.
FAANG gets away with it because they amortize their engineering costs over an extremely customer base. Which also multiplies the value in output quality difference.
Most companies are not building EC2 or BigTable.
And so... it makes more sense to hire minimal cost engineers, then corral them with a single high-cost manager.
> Because it's cheaper to compensate one manager 10x average (and get the best candidate) than pay more to hire an entire team of more skilled ICs.
I don't think you get better managers by paying them more though, over some threshold. You'd probably just get more "competetive" managers in the meta game of becoming a manager. Like engineers at Google are not some elite just becouse they are paid more. Only athletics actually can be evaluated in an accurate enough manner I believe.
>Aren't stronger labor union protections supposed to lead to higher wages?
Only for those at the lower end, usually at the expense of growth and opportunities for those at the higher end, but since those are fewer in number their votes are less important.
>How is it that European tech workers can't bargain for higher wages?
Because investors there don't have as much money, and those who do don't risk it starting tech companies. And also because Europe is not a single country with one law and one language, but 27+ with different laws and different languages, means scaling a business beyond the original country is difficult and expensive.
It's the US who's the exception in tech success, not EU for failing to match it.
> How is it that European tech workers can't bargain for higher wages?
The leverage a company has and the leverage a union has both come from the same place: A lack of alternatives. But then that's the problem.
If you have a competitive industry, the union can't demand much because the company's margins will be slim and they won't be able to give the union much without raising prices, losing customers to competitors and going out of business. This is actually fine because in that case workers still get the money in the form of lower consumer prices, but then it's not the union which is getting you the benefit.
Conversely, if the industry isn't competitive then the company will be a huge conglomerate with a lot of leverage against workers/consumers. They'll be big enough to exert political influence in the government and also big enough for the company's union to become infested with politics. In particular, the union knows where its leverage comes from, and it's workers with skills in high demand, so any union that doesn't keep them happy and keep them from moving to another company/industry is going to have to contend with a pissed off conglomerate with a lot of political influence. So the money goes to the people with high demand skills (or political connections) and the rank and file still get the scraps, but now it's even worse because lack of competition and high levels of organizational inefficiency means high prices when they go to buy things.
I haven’t seen any managers that worked themselves up from the bottom, in eu. A manager starts with an economic background and step in from the side. That coupled with free university means that programmers is not something that you look up too.
Maybe that was fine? It's possible the customers were prepared to wait and would buy regardless, in which case why have extra staff to cover short gaps? It sounds like your personal complaint is that you had to spend your whole time at work working instead of standing around?
nah customers complained all the time. You'd be helping a customer and have 2 other customer waiting, and other things to do including tidying up, cutting the saw, operating the forklift to bring down more product, etc. It was 8 hours of constantly being run around and having customers be frustrated because they were waiting for your help, and couldn't find anyone else, because there was no one else. Sometimes they'd go all the way to the other end of the store to find someone and they'd bring the electrical or plumbing guy over to ask questions about concrete and he'd just tell them to talk to me.
It sounds like you have never worked busy retail, more than anything else. You wouldn't accept your own job being that level of busy dealing with unserved and frustrated customers at that pace.
No doubt it was frustrating, but you said the managers' decisions were driven by numbers. So would they have ended up better or worse off with more staff? Surely they'd have more sales, and if that more than made up for the cost of another worker, they would have hired one. So why didn't they? Maybe it was a mistake and they actually weren't optimizing the profit for the department enough?
Managers burning out people chasing KPIs and promotions of their own careers, isn't anything new or exclusive to Walmart. I've seen it in every tech company I've ever worked at.
eventually... the delay between manager doing stupid action chasing KPI and store burning down may be large enough that the average manager is likely to burn the store down.
If your goal is long-term success, those incentives might be misaligned.
I can't help but notice that you shifted the goalpost subtly from "better for everyone" to "not worse for everyone" there.
If the pie was shared more fairly, then yes they would be better off and I daresay that their incentives would be better aligned with getting those numbers up. And yes, that would mean managers not pulling down millions.
+1 to everything you say here. The store manager track is very much a Corporate vs Retail (hourly) thing at least at the big chains.
I worked retail in high school and college in the same era as you mentioned and even 20 years ago, a store manager at a Best Buy or a Costco was clearing $250k or more, at least in the wealthier-Atlanta area where I lived (I know a lot of HD employees being from Atlanta and my knowledge of corporate and sales manager salaries at HD aligns with yours too), as you said, based in part on bonuses related to store revenue (the Best Buy stores I worked at when I was 16 - 22 were two of the top-ranked stores in the southeast region by sales, with some departments being among the top 10 in the whole company). For some of the chains, I think that has decreased as in-store sales have shifted but places like Costco notoriously pay their store managers extremely well.
Best Buy desperately wanted me to quit college and be fast-tracked into store or sales management (I would spend my summers as a manager of a department and they agreed to keep me at that elevated hourly wage even when I was part-time during the school year), trying to lure me with tales of just how much money the top of the foodchain people make, but I never took it seriously. Given the ebbs and flows of the economy (I graduated from college in 2008) and the collapse of the retail market from its early 2000s high in favor of ecommerce/Amazon, that was almost certainly the right decision -- but it was an instructive lesson for me at a young age about the very disparate differences in compensation between the hourly workers and the people at the top of those stores.
The Freakinomics book has a great chapter on how the police discovered accounting books of a NYC drug cartel, and its pay scale from the street watcher to the top lord was the same as at… McDonnalds (just the ratio, not the amounts).
20 years later, I reckon there was a lot of storytelling here advantaging the arguments of the right-wing, but I’d still be curious what are the true figures.
no the point was that they made around minimum wage, and lived with their mom.
the question the book asked, explictly, was then if they're making minimum wage, why not just get any old crappy job at McD's or as a janator? if you're making minimum, why not get a job where there is no risk of getting shot or sent to jail?
Did the book have no answer? Status (in drug dealers' circles, the gangster/thug is higher status than a fast food job), more independent lifestyle hours (no 9-5), and seeing a way to move up (a la become Scarface) that culture doesn't portray from a "dead end" McD's job.
that's correct. they speculated -- they're economists, not sociologists -- that it was about status, hours, lifestyle, and the get-rich hail-mary long-shot potential.
workin McDs or Kinkos is eating shit every day, wearing a uniform, etc. and is fundamentally emasculating when compared to gang culture.
You are 100% spot on. Shrink was a huge factor for bonus payout(huge pay lever for mgmt in stores) as if you lived in a area that had high theft you never hit your bonus(shrink is the delta of actual vs. recorded inventory). That and the bonus also factored in sales volume, but shrink was a giant component of it. I remember when a few employees from a rural store came to help out they mentioned they had never not gotten a bonus, whereas my store - a urban store never received a bonus due to excessive shrink. But what I was getting at is there are positions that pay well if you hit your numbers, as a sales associate/dept. manager your pay was capped to really low numbers no matter what happened.
> while the assistant managers I think were in the 60-80k range.
Don't know how it was at Home Depot, and my experience at Walmart was ~20 years ago, but asst managers were in-building 10-12 hours/day, usually there 6 days a week for various reasons, and at that time were only making $50k salary to start. Unless there were other bonuses I was unaware of, it was absolutely not worth it.
I wasn't making a living wage as an hourly associate, but they were super strict about me working beyond 40 hours, and when they "requested" beyond that (it was rare but never truly optional if I wanted to keep climbing) I was well compensated because they were terrified of lawsuits by that point. Small blessings.
Yeah, asst managers lived a brutal life walking back and forth through the stores on walkie talkies all day long. I have a feeling its a lot of peoples first salaried jobs, they move up from front line to asst mgr so willing to take more abuse to not make $15/hr anymore. I was there at many points. I did that leaving HD, 12.50 to 40k in ops.
I can picture the faces of all of my managers, ASMs. I can't picture the face of either of my store managers. I'm not sure I actually ever saw them. They definitely weren't in the store often.
I loved my first store and HATED my second store. If you're full-time at HD you have no control of your hours at all. They'd schedule me to close 11pm-12am then open at 5am the next day at the second store. I just quit one day. I constantly got sick from getting no sleep.
If you're part-time there you have 100% control of your hours. Tons of people in college who worked 2-4 hours a day. It was miserable watching them come and go.
I worked at Lowe's circa 2013 and this was my experience as well. One thing to note is that if you're ambitious and not incompetent, you can get pretty far career wise in retail. That was the impression I got anyways.
I'm the op that worked at HD, I got out at like 20, but I have an ex who's climbing the ladder at Abercrombie (or whoever owns it) for the last 5-6 years and it seem so miserable.
She's moving every 1-3 years because they transfer her to a new store, and because she's running the higher profit stores they send her to trash stores to try and fix them. She has no practically no vacation, has to fill in staff shortages, works every weekend. I think she's around 30-40k. So she's doing all this to eventually (6 years in now) break into the corporate world, where she'll then have to move 1000 miles away to I think Georgia.
To... probably make 60k.
I'm really curious where she'll be in 5-10 years, she's managed so many stores I feel like she'd go regional manager route or something. OR training would keep her at corporate instead.
I think corporate sees themselves on another planet from the peasants running the stores and to allow someone outside of the caste system of.. gasp, having a bachelors degrees/mbas in mass communication to work at HQ vs having worked in stores for the last 6 years bringing the company earnings is .. like a sympathy promotion if it ever happens.
I worked retail in the early 90s at a huge chain of appliance/electronic stores. The managers were paid very well.
If you survived the politics of being moved from store to store, never knowing your schedule, and blatant, miserable sexual harassment ("hey let's go out for drinks and discuss how I might let you sell large appliances instead of small electronics"...oh wait..."you didn't go to my apartment...we have this opening an hour away that you have to take with no advancement opportunity".
Okay, assuming the sexual harassment is gone/obsoleted by solid company policy, there's the "chasm" from peon to management that you can only aspire to if you never make a mistake or make them quietly. Or never leave the job to get a degree. Or get lucky somehow.
Those positions at management level above peon required a lot of sweat equity and risk on the part of the worker bee. If it doesn't pan out, well, that's what...3-15 years of your real actual life flushed down the toilet.
Thank you to share your experience. While I am not experienced in this area, I feel too many other posts are overlooking the _path_ to store manager. It is a brutal grind, and getting to the top is so much luck.
Radio shack store managers easily hit 60 (Strip Malls) to over 100k a year (Shopping malls) in the late 1970s, again thanks to performance bonuses so this is nothing new. Same long hours as retail, with way more reason to get out of bed each day.
(60k in 1978 would be 280k in 2023 thanks to inflation)
Walmart Global Tech is above average tech pay, just a step or 2 behind FAANG. One downside is annual stock grants instead of 4 year, so there is a lot less upside
The people with limited responsibilities who are easily replacable get paid nothing. Jobs that are hard to hire competent people for get paid $$$$. Supply and demand in action.
A friend went to Harvard to join Waffle House (corporate). These are obviously lucrative ventures that yield reliable returns, such as voting blocs to hold over your (not-so) local congresspersons' heads during election seasons.
Store managers are also generally expected to devote their entire lives to the job, and are imminently replaceable. What generosity Walmart may offer is off the backs of the lowest earning workers who frequently require taxpayer assistance to survive, and thus store manager’s bonuses are subsidized by the local communities Walmart most likely harmed by setting up shop to begin with. None of this is as simple as n=$$$ so Brand X is morally justified. It’s all symptoms of larger societal issues.
Here was a recent and (somewhat) related post about the trucking industry and training for a CDL in Texas [0]. A very interesting read about both the macro environment and the particulars of several people looking to enter this career.
Are the drivers expected to deliver 110% all day and everyday? We all know long haul truck drivers pee in empty Gatorade bottles to avoid using a restroom. Do Walmart drivers also defecate in diapers to avoid stopping so they can continue to be in the top tier of drivers?
How does Amazon pay its truck drivers? They seem like the closest comparison, with their own distribution system. Amazon's reputation is treating employees poorly, but maybe truck drivers are valued.
Reliability. Truckers aren't just drivers, they're mechanics and logistics strategists. The assignment is to get from point A to point B, but there a lot of decisions in between.
Source: two good friends that drive truck for a living. One in Iowa and the other in Michigan
It turns out that good truck drivers could also be doing other useful work, and want to be well compensated and taken care of for their labor.
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