Companies Spend Cash on Investors, Not Workers

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    Jun 06, 2013 6:27 AM GMT
    Companies flush with cash remain reluctant to hire or make capital purchases, choosing to reward investors rather than expand their businesses....and the investors are the ones pushing product out the door so the company can make money?,
    somebody has their priority misplaced

    When it comes to adding jobs, though, companies have been much stingier than they've been with giving back to investors.

    that bottom-line-focused companies lowered their worker costs by 4.3 percent while squeezing out still more productivity

    all that stingy squeezing......
    Oh, I see........icon_evil.gif

    http://finance.yahoo.com/news/companies-spend-cash-investors-not-162357568.html

    US Labor Costs Fall in First Quarter, but Productivity Rises

    hmmm, ya don't say

    A gauge of U.S. labor-related costs fell in the first quarter by the most in four years, although the reading appeared to be distorted by a shift in employee compensation during the prior period to avoid a tax hike.

    Unit labor costs fell at a 4.3 percent annual rate during the period, revised readings from the Labor Department showed on Wednesday. The government had initially estimated a 0.5 percent gain, and the downward revision confounded analysts' expectations that the reading would remain unrevised.

    However, the government revised sharply higher its estimates for employee compensation during the fourth quarter after incorporating new data sources.

    That brought the readings more in line with other indicators of wages which have suggested that employers pulled forward compensation for staff into the fourth quarter so that employees would pay taxes on that income at 2012 tax rates. Washington raised tax rates in January.

    Still, the figures show minimal inflationary pressures. Unit labor costs were up 1.1 percent in the year through the first quarter. That suggests the U.S. Federal Reserve has plenty of room to keep interest rates low, although signs of stronger job creation have boosted expectations the Fed could begin reducing its monetary stimulus this year.

    Wednesday's report also showed U.S. nonfarm productivity rose modestly in the first quarter, increasing at a revised 0.5 percent annual rate. Economists polled by Reuters had expected productivity to gain at a 0.7 percent rate, the pace initially reported by the government.

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    Jun 06, 2013 1:50 PM GMT
    It's always easy for others to try to spend other people's money. Convenient that. Let alone the fact that many businesses have no idea what the effect of Obamacare will be on either the economy or their own companies. As pointed out in an earlier thread, the head of a banking group was telling me that his clients are actively looking at firing or reducing their work force to being under 50. Further, they are looking at outsourcing or moving operations offshore - and that's in a tech/medical industry.

    It's what you wanted. Congratulations, you're getting it.
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    Jun 07, 2013 5:29 AM GMT
    riddler78 saidIt's always easy for others to try to spend other people's money. Convenient that. Let alone the fact that many businesses have no idea what the effect of Obamacare will be on either the economy or their own companies. As pointed out in an earlier thread, the head of a banking group was telling me that his clients are actively looking at firing or reducing their work force to being under 50. Further, they are looking at outsourcing or moving operations offshore - and that's in a tech/medical industry.

    It's what you wanted. Congratulations, you're getting it.


    Im sure ALL business moved out of Canada when universal healthcare was implemented...yeah right, your injecting your disapproval of Obamacare into the article, CHEAP LABOR is what they want and why the jobs are moving, employer provided healthcare will prob go away eventually and wont be part of a hiring "compensation package" and prob less of a burden to the employer, once cost are under control and deregulation of the medical insurance industry, employers can afford to pay their employees fair and just wages instead of complaining all the time how much an employee cost them, employees were once an asset to a company, now they are an expense.

    They have already removed any pension plans, (for you people to young enough to remember, a pension benefit plan kept the employee working for the employer for 30+ years into retirement, thus the invention of the 30 year mortgage), blame Bush, still wanting to privatize social security and have everyone's new pension be their 401k and risk in the stock market, Just as with your auto or home insurance, YOU pick it, just like your employers 401k plan, YOU pick your mutual funds and direct YOUR own money, but you have to be educated and knowledgeable enough like doing your own taxes or balancing your own check book in order to be able to choose these things yourself, you conservatives cant have it both ways, corporate america and the 1% are cheap and greedy and want slave labor, im sure they will be happy to pawn off healthcare to the employee just like they pawned off pension plans to 401k and the stock market

    You don't work for a company for 30+ years anymore, (these are the baby boomers) more like 3 years and out (gen Y and mills) and employers seem to like this now, dump pensions, dumb healthcare and dump OTJ training, the three biggest employee expense to a company, no loyalty on either side, just expense and profits, Greed is only good for a corporation, corporations are not people icon_rolleyes.gif
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    Jun 07, 2013 12:19 PM GMT
    scruffLA said
    riddler78 saidIt's always easy for others to try to spend other people's money. Convenient that. Let alone the fact that many businesses have no idea what the effect of Obamacare will be on either the economy or their own companies. As pointed out in an earlier thread, the head of a banking group was telling me that his clients are actively looking at firing or reducing their work force to being under 50. Further, they are looking at outsourcing or moving operations offshore - and that's in a tech/medical industry.

    It's what you wanted. Congratulations, you're getting it.


    Im sure ALL business moved out of Canada when universal healthcare was implemented...yeah right, your injecting your disapproval of Obamacare into the article, CHEAP LABOR is what they want and why the jobs are moving, employer provided healthcare will prob go away eventually and wont be part of a hiring "compensation package" and prob less of a burden to the employer, once cost are under control and deregulation of the medical insurance industry, employers can afford to pay their employees fair and just wages instead of complaining all the time how much an employee cost them, employees were once an asset to a company, now they are an expense.

    They have already removed any pension plans, (for you people to young enough to remember, a pension benefit plan kept the employee working for the employer for 30+ years into retirement, thus the invention of the 30 year mortgage), blame Bush, still wanting to privatize social security and have everyone's new pension be their 401k and risk in the stock market, Just as with your auto or home insurance, YOU pick it, just like your employers 401k plan, YOU pick your mutual funds and direct YOUR own money, but you have to be educated and knowledgeable enough like doing your own taxes or balancing your own check book in order to be able to choose these things yourself, you conservatives cant have it both ways, corporate america and the 1% are cheap and greedy and want slave labor, im sure they will be happy to pawn off healthcare to the employee just like they pawned off pension plans to 401k and the stock market

    You don't work for a company for 30+ years anymore, (these are the baby boomers) more like 3 years and out (gen Y and mills) and employers seem to like this now, dump pensions, dumb healthcare and dump OTJ training, the three biggest employee expense to a company, no loyalty on either side, just expense and profits, Greed is only good for a corporation, corporations are not people icon_rolleyes.gif


    Once again, this seething lack of responsibility for any of your own actions or outcomes. You are getting what you're deserving - particularly with Obamacare - which is not like Canadian healthcare or any other healthcare system in the world. It's not going to make healthcare cheaper and it's unlikely to improve outcomes. Again, less money is spent per capita on Canadian healthcare than what is spent on PUBLIC healthcare in the US. That said the Canadian model isn't even sustainable.

    Cheap labor isn't what businesses seek, it's productivity. Figure it out. This incidentally can also mean some of the best paid people out there. You're inventing all these ridiculous strawmen without even understanding some fundamentals.