It’s hard to ignore the economic circumstances of those who work for minimum wage in a community like the Bitterroot Valley. Vacant mini-malls and empty downtown storefronts prove many local companies go out of business because we, the working poor, have no purchasing power. We shop at thrift stores and garage sales. We cannot afford much beyond necessities. And keeping what we have, whether it’s our old cars running or paying property taxes, becomes tougher each year.
Capitalism gave us hope, made us believe if we worked hard, we too could share in the American Dream. Now, wages are stagnant, but not the cost of living. Now, eating out means grabbing fast-food, not dining in a nice restaurant. We don’t take vacations or purchase small luxuries. We live paycheck to paycheck. There is no sick-leave, there are no paid vacation days. Christmas bonuses are rare.
Thankfully, this is not true of every business owner. In Forbes, Sir Richard Branson said, “This [Virgin Atlantic] isn’t a company that just talks about putting employees first or glibly claims that our people are our greatest asset.”
Virgin America CEO, David Cush, stated, “the airline seeks out people who are 1) positive 2) friendly and 3) who see life as ‘glass half-full.’ Finding the right people is 90 percent of the battle. People first; profits second.”
In the same Forbes article, Gary Kelly, the CEO of Southwest Airlines, stated, “The difference at Southwest is this: Everything begins and ends with our people. If we keep our employees happy and engaged, they will keep our customers happy, who will reward us with their loyalty.” (Carmine Gallo, Forbes, September 10, 2013)
Sadly, most Hamilton employers follow a different business plan. While they thrive, we struggle to survive. They alone can afford new cars, second or vacation homes, boats, recreational vehicles and luxury vacations, while their employees struggle just to have enough fuel to drive to work between paydays.
In the past, if a business was profitable, the owner knew its success was due in large part to hard working employees. In 1914, Henry Ford doubled employee wages. Company treasurer James Couzens stated, “We want those who have helped us to produce this great institution and are helping to maintain it to share in our prosperity.” (The Learning Network, January 2012). The Wall Street Journal chastised Ford, writing Ford committed “an economic blunder,” but within two years Ford’s profit doubled. The wage increase reduced the company’s high turnover rate by retaining its best employees. Savvy business owners know success is a team effort and show their appreciation by compensating employees for their loyalty and hard work.
When a business owner makes money, and shares the profits with employees, the entire community benefits. For Artie T. Demoulas, owner of the Market Basket groceries, people before profit was not just a slogan. He incentivized employees with profit sharing and stock options. Teenagers went to work for Artie T., and often stayed with the chain their entire careers.
Not just survival, but quality of life in small town America depends on employers who are willing to share their profits with the employees who help them accumulate and sustain their wealth. Loyalty, prized by employers, must work both ways or it becomes servitude.
Jim Casey, who founded UPS over 110 years ago, believed, “The measure of your success will be the degree to which you build up others who work with you.” Casey’s business acumen made UPS a Forbes Top Fifty Business and made Casey wealthy, but not at the expense of his employees.
Financial advisor Charles Payne touts the economic theory known as the “Velocity of Money.” Payne believes that if a person has five extra dollars to spend, he will invest it in his community by making a purchase, which helps another store owner, its employees and the product’s manufacturers.
As our own ability to purchase goods declines, local businesses will become more dependent on tourism dollars. But the more money people in a community earn, the more they can spend, and the more invigorated the local economy becomes, strengthening us all: the velocity of money; people before profit. Employers, it begins or ends here locally, with you.
Robin St. Germaine
Corvallis