living wage

Comment of the Day: “Ethics Quiz: The Tip-Sharing Plan”

/ Jack Marshall / 22 Comments

We have a rare Ethics Alarms Quote of the Day hand-off. Responding to the ethics quiz about the ethics of tip-sharing,  veteran commenter JutGory wrote,

“My understanding is that, in some places, servers collect the tips and “tip-out” to the others (kitchen staff, etc.) at certain rates. If that is the culture (I have never been a server; not my skill set), why is a server trusted more than the employer to be fairer than the employer in tipping out?”

I have written about tipping ethics issues for years, and never encountered the concept of “tipping out,” perhaps because the minimum wage jobs I had in my youth never involved tips of any kind. Still Spartan picked up JutGory’s baton and dashed for the finish line. Here is her Comment of the Day on the post, Ethics Quiz: The Tip-Sharing Plan: 

I used to work at a fancy restaurant and that was the system. The percentage of tip out was based on total food sales, so you couldn’t cheat. And, if I received really generous tips, I was incentivized to tip more because I wanted the hostess to seat good customers at my table, my drinks up first, my tables bussed quickly, etc. I would never work at a place that pooled tips because I was quite frankly better than most servers. I was quick, friendly, and rarely made a mistake. I could up-sell my customers on liquor and food which meant more money for me at the end of the night. And you people think I am anti-capitalist! Chefs aren’t tipped and they make a lot more than $3/hr., and although it is a hard job, at least their revenue is consistent. Many managers are well-paid too and often double as hosts or bartenders. I would be pissed if they had the ability to collect my tips.

The real solution to this problem is to pay servers a living wage and just have it incorporated into the price of food.

Ethics Observations On Talia Jane’s “Open Letter” To Yelp

/ Jack Marshall / 41 Comments
Talia Jane. Get used to seeing this face over the next 15 minutes or so...

Talia Jane. Get used to seeing this face over the next 15 minutes or so…

The story: A 25-year-old entry level Yelp (at Eat24, which is owned by Yelp) customer service agent named Talia Jane posted an article to the social media site Medium titled, An Open Letter To My CEO.  Addressed to “Jeremy,” Yelp Chief Executive Officer Jeremy Stoppleman, Jane’s epistle was a long. angry, often sad, more often snarky lament about her low compensation, current poverty, and lack of satisfaction with her job;  her personal hardship as she struggled with Bay Area living expenses like rent, food, electricity, internet, transportation; and her criticism of company policies and Stoppleman’s millions (Yelp was his creation.) The letter quickly went viral, especially among Bernie-files and on left-leaning websites, as the post was a rant against the lack of a living wage and greedy corporations generally. A couple hours later, Talia posted an update that she had been fired, and Stoppleman responded to some of her concerns on Twitter, protesting that he and his company were not as callous as she claimed. Stoppleman also tweeted that he was uninvolved in her firing and it was unrelated to the Medium post.

Observations:

1. Of course, Yelp had to fire her. Any company, large or small, would and should fire a low level employee who intentionally attacks her employer and the company’s CEO in a public forum. That the letter was read far and wide just sped up the process. The Bernie Brats, being so ignorant of the way of the world that they actually believe Sanders’ Socialist fantasies, naturally faulted Yelp for her fate. In Bernie World, you see, everyone is guaranteed a job, even after they go out of their way to embarrass the people who write their paychecks, or so they appear to believe.

2. Jane wrote that her firing was “unplanned” but not unexpected. I don’t believe that for a second; in fact, the statement is contradictory. She wrote a 2500 word attack on her employer and posted it online, and says she “expected’ to be fired. When you take deliberate action that you know will have a specific result, that’s a plan. The plan is to get out of a job she hates and that doesn’t advance her desired career—apparently to be a highly paid web commentator and wit—by making herself into a sympathetic celebrity long enough to exploit her fame and re-boot her ambitions. Isn’t that obvious? I’m sure that Talia is being booked on radio and TV shows as I write this. For her plan to work, however, she has to lie about her intentions in writing the letter. To some extent, I admire her audacity, and the plan may work. But this is The Saint’s Excuse: she made a deal with Yelp; they held up their end of it; she miscalculated, she was dissatisfied, so she made Yelp a public target for her own benefit.  Unethical. It is also the rationalization called Ethical Vigilantism: she thinks this is right because she deserves better, and is justified betraying her benefactor.

3. I wouldn’t trust Talia Jane to run my lemonade stand. Continue reading →

Just In Time For Christmas, Here Are All The Bad Arguments And Rationalizations Against Tipping So You Can Feel Self-Righteous About Being A Scrooge

/ Jack Marshall / 20 Comments
See? The rest of the world knows how to deal with you sexist, racist, aristocratic poverty perpetuating, self-esteem destroying bastards!

See? The rest of the world knows how to deal with you sexist, racist, aristocratic poverty perpetuating, self-esteem destroying bastards!

Vox has published an entertaining screed against tipping, massing all the contradictory, facile rationalizations and faulty arguments against demonstrating one’s gratitude when someone serves you well. This is Vox, remember—Ezra Klein’s uber-progressive website with an agenda. Think about what the alternative to tipping is, and where the critics of tipping are going with these claims. Hint 1: It has nothing to do with democracy or individualism. Hint 2: The piece argues that tipping is classist, racist, sexist, “lookist”…the works.

The full illogical, ethically confused character of this junk has to be read to be fully appreciated, but here is a quick overview:

1. Hoary old quotes. There are these, for example:

English author Lynne Truss on visiting New York: “In this great financial capital … tips are not niceties: give a ‘thank you’ that isn’t green and foldable and you are actively starving someone’s children.” No, Lynne, you’re being cheap, that’s all.

The Village Voice’s Foster Kamer: “It reinforces an economically and socially dangerous status quo, while buttressing a functional aristocracy.”   Ah. You see, if lower paid service professions are treated like robots and underpaid, they will rise up and overturn this monstrosity called capitalism.

 Michael Lewis: “I feel we are creeping slowly toward a kind of baksheesh economy in which everyone expects to be showered with coins simply for doing what they’ve already been paid to do.” Who is being “showered with coins?”

2. “Tipping lets employers off the hook.” Translation: It gets in the way of the progressive “living wage” campaign. Mandatory salary levels drive businesses out of business and reduce jobs. Want to see all restaurants go to the iPad, self-ordering, system running rampant at airport restaurants—and no, I don’t tip a runner who just carried my food to the table—by all means, force restaurants to pay “a living wage.”

3.  “Tipping is undemocratic.” This is the George Orwell, “Peace is War” argument. The government should stop me from giving my money to whoever I want in the name of democracy. Continue reading →

Great, Now Magneto Wants To Wipe Out Professional Theater…

/ Jack Marshall / 25 Comments

Magneto McKellen

Maybe he should run for Vice-President on a ticket with Elizabeth Warren.

Quoth revered British actor Ian McKellen, Magneto (and Gandalf ) in the flesh:

“The one thing you can ask, I think, is that actors get paid a living wage. I would like it if all the repertory theaters that currently exist could do that. It would make a huge difference.”

It sure would. It would put most small professional theaters out of business, make theater unaffordable for any but rich theater-lovers, and eliminate a huge number of acting jobs. It is an idiotic, ignorant, irresponsible, but very, very nice, liberal, compassionate, well-intentioned and Elizabeth Warrenish suggestion that willfully ignores reality and basic economics—in other words, it is consistent with progressive mythology. We owe the Magster a debt of gratitude for illustrating exactly what is wrong with blanket endorsements of minimum wage increases and “living wages.” Continue reading →

Comment of the Day on “Ethics Bob Opens An Ethics Can of Worms…”

/ Jack Marshall / 7 Comments

Chase Martinez enters the debate on the ethics of Nike’s labor practices abroad, raised by a post by Bob Stone on his blog, and explicated here with some business ethics questions that have long perplexed both critics and advocates of American capitalism.Here is his Comment of the Day:

“The company has a duty to make money.”

“I think what is unethical is consumers abdicating their ethical duty to make informed choices. In big business, “everybody does it” is self-propagating because there is no consumer pressure to be better than your competition. The “free market” assumes an informed consumer-base that punishes companies who disagree with their values by taking their business to those that do. This doesn’t happen, and while some fault lies with companies for using the EBDI rationalization, most, I think, lies with consumers for being apathetic. As long as American consumers don’t care about Chinese peasants working for a dollar a day because they don’t know any better, corporations like Nike have no reason to care.”

Ethics Bob Opens An Ethics Can of Worms, All Named “Nike”

/ Jack Marshall / 18 Comments

Ethics Bob opens an ethics can of worms with his latest post, “Is It Ethical For Nike To Make It’s Shoes $4 a Day?” Among the worms, some older than dirt:

  • If workers agree to work for a given price, is the company’s obligation to pay them more?
  • Should any company pay less than a living wage for full-time work, whether or not desperate workers assent?
  • Is it better for a company to pay fair wages and go out of business because it can’t compete with competitors who pay less, than to keep creating jobs, products and wealth for investors by keeping the business profitable?
  • Is a US company justified in using local standards of fairness when it is doing business in a foreign country, rather than America’s ethical standards?
  • Can a company wash its hands of the arrangements made by its foreign contractors, no matter how unjust or exploitive?
  • Is it not per se unethical for a company like Nike to pay millionaire athletes obscene amounts of money for mere endorsements while it pays only $4 a day to the workers who make their shoes?

You can, and should, read Bob’s post here, and then we can argue about the above questions for the rest of our lives.