Wage Raises Due To Tax Cuts

[atomicarcheologist]

Although the 2018 Federal Tax Cuts for corporations are permanent and, at least PR-wise, to help increase wages, I have been hearing that Day and Zimmermann hasn't given any raises to the field employees. Is this true? 
How about Bartlett?

[TVA]

Why would they?

[TVA]

Lol for a contractor?

[xobxnuke]

too easy

[hamsamich]

Trickle down economics works, right?

[Marlin]

   BossLady got a larger raise with the tax cut than any company raise she has gotten. That may change as the RCTs at Y-12 recently voted to go union. As for service companies passing along the rate cuts, they are on very thin profit margins in general and pay scales are set by each contract. It is very possible that the raise disappears in the next bid to compete for the contracts. Companies that produce a product have a different business model than staff augmentation. Job shoppers who choose not to wear the golden handcuffs of a utility or other brick and mortar facility are "At Will" employees and exchange company security for freedom and personal responsibility.


 

[TVA]

Exactly. Completely negotiated with the buyer

[TVA]

Dude deleted his post

[atomicarcheologist]

Exactly. Completely negotiated with the buyer

From what I have read here, wages have been stagnate for over a decade.
Since contracts are in place, the companies are making 18% more than previously. Since their overhead shouldn't have increased more than what was built into their (awarded) bid, I can be relatively certain this extra 18% is profit.
To keep and attract the type of employees desired, a company usually offers better compensation than it's competitors. With windfall profit, it should be simple.
That brings me back to my original post on this thread.

[Marlin]

From what I have read here, wages have been stagnate for over a decade.
Since contracts are in place, the companies are making 18% more than previously. Since their overhead shouldn't have increased more than what was built into their (awarded) bid, I can be relatively certain this extra 18% is profit.
To keep and attract the type of employees desired, a company usually offers better compensation than it's competitors. With windfall profit, it should be simple.
That brings me back to my original post on this thread.

   Typically contractors do talk more about wage than pay package and contractors have been effectively declining on both counts for a long time. Contractors are laid off and rehired for each job and are typically locked into negotiated contracts. Brick and mortar employees may be able to count on pay raises while employed but I strongly suspect that job shoppers will only see an increase with new contracts and staffing which may appear in the bonuses paid or other compensation. YMMV

[TVA]

The point being DZ and others arent going to offer a wage raise. They negotiate with those who require their services. If DZ says hey we are going to hike or per hour 2 bucks an hour because....
The utility hires the company that didnt raise their rate. DZ isnt there for the individual they are there for DZ

[atomicarcheologist]

   Typically contractors do talk more about wage than pay package and contractors have been effectively declining on both counts for a long time. Contractors are laid off and rehired for each job and are typically locked into negotiated contracts. Brick and mortar employees may be able to count on pay raises while employed but I strongly suspect that job shoppers will only see an increase with new contracts and staffing which may appear in the bonuses paid or other compensation. YMMV

Contractors are laid off and rehired for each job and are typically locked into negotiated contracts. Brick and mortar employees may be able to count on pay raises while employed but I strongly suspect that job shoppers will only see an increase with new contracts and staffing which may appear in the bonuses paid or other compensation. YMMV

I understand that NPP contracts are for a number of years, not a per project basis, which is my venue.

[atomicarcheologist]

The point being DZ and others arent going to offer a wage raise. They negotiate with those who require their services. If DZ says hey we are going to hike or per hour 2 bucks an hour because....
The utility hires the company that didnt raise their rate. DZ isnt there for the individual they are there for DZ

Existing contracts are in place for those BOP on the Wish List per company. Each company is in an additional 18% profit margin.
Perhaps those companies are too deep in the swamp.

[Marlin]

Existing contracts are in place for those BOP on the Wish List per company. Each company is in an additional 18% profit margin.
Perhaps those companies are too deep in the swamp.

   An 18 percent increase on a slim margin is not much of an increase. I don't know what today's margin is but it has been just 6 percent at times with which they take a profit and pay home staff, facilities upkeep and rent/mortgage. There may be some capital costs that can be caught up on if the company also provides other services. I would not expect much if any increase in wage. I have known companies to bid these contracts for cash flow as opposed to profit because there is a lot of money flowing but not much profit which is brought in by other contracts (deliverables) that are not staff augmentation.

[TVA]

Private contract with a private company. No swamp

[SloGlo]

grate thread!

[SloGlo]

   An 18 percent increase on a slim margin is not much of an increase. I don't know what today's margin is but it has been just 6 percent at times with which they take a profit and pay home staff, facilities upkeep and rent/mortgage. There may be some capital costs that can be caught up on if the company also provides other services. I would not expect much if any increase in wage. I have known companies to bid these contracts for cash flow as opposed to profit because there is a lot of money flowing but not much profit which is brought in by other contracts (deliverables) that are not staff augmentation.

6% is slim, butt it is net.
"Profit margin usually refers to the percentage of revenue remaining after all costs, depreciation, interest, taxes, and other expenses have been deducted. The formula is:

(Total Sales - Total Expenses)/Total Sales = Profit Margin

Note that preferred stock dividends are typically included in the calculation, but common stock dividends are not."
http://www.investinganswers.com/financial-dictionary/businesses-corporations/profit-margin-5116

n an 18% tax break on a contract yielding 6% profit wood bee sizeable, as it wood bee 18% of the gross, including the 6% profit. sew, eye sea >24% profit awn currant contracts.

[Marlin]

6% is slim, butt it is net.
"Profit margin usually refers to the percentage of revenue remaining after all costs, depreciation, interest, taxes, and other expenses have been deducted. The formula is:

(Total Sales - Total Expenses)/Total Sales = Profit Margin

Note that preferred stock dividends are typically included in the calculation, but common stock dividends are not."
http://www.investinganswers.com/financial-dictionary/businesses-corporations/profit-margin-5116

n an 18% tax break on a contract yielding 6% profit wood bee sizeable, as it wood bee 18% of the gross, including the 6% profit. sew, eye sea >24% profit awn currant contracts.

I disagree and >24 percent seems very high, typical small business companies make much less and traditionally these service companies are below that average, I suspect there would be more competition in the business and the larger vendors would be back in that part of the service industry as Westinghouse and Combustion Engineering were at one time. Though with shorter and fewer outages that may be what is needed to survive.

[SloGlo]

I disagree and >24 percent seems very high, typical small business companies make much less and traditionally these service companies are below that average, I suspect there would be more competition in the business and the larger vendors would be back in that part of the service industry as Westinghouse and Combustion Engineering were at one time. Though with shorter and fewer outages that may be what is needed to survive.

hoe kay. two git my >24%, aye used yore 6% + 18% via the federal  corporate tacks cut. butt, eye erred, it ain't 18%, witch aye got from this thread, butt 14% making my estimate >20%.
sew, lettuce due sum math. using a rounded number of my home plant pay rate wit d$z of $40/our, and assuming that d$z pays well (caws they all weighs say they dew), aisle estimate there billing of $100/hr. you're 6% profit equals $6 if it was based on the $100, witch it isn't as it is based on the net after costs.
now, they're is a 14% cut in federal tacks. d$z won't pay $35 inn federal tacks, butt $21. now, the billing  is the same $100 per our, so theirs an extra $14 going to the company in a net fashion, witch fits the description of profit.
 now, that 6% was based on net after costs, and the costs decreased by $14, sew that $6 has increased due too less costs, plus the 14% = >20% profit.

[Marlin]

hoe kay. two git my >24%, aye used yore 6% + 18% via the federal  corporate tacks cut. butt, eye erred, it ain't 18%, witch aye got from this thread, butt 14% making my estimate >20%.
sew, lettuce due sum math. using a rounded number of my home plant pay rate wit d$z of $40/our, and assuming that d$z pays well (caws they all weighs say they dew), aisle estimate there billing of $100/hr. you're 6% profit equals $6 if it was based on the $100, witch it isn't as it is based on the net after costs.
now, they're is a 14% cut in federal tacks. d$z won't pay $35 inn federal tacks, butt $21. now, the billing  is the same $100 per our, so theirs an extra $14 going to the company in a net fashion, witch fits the description of profit.
 now, that 6% was based on net after costs, and the costs decreased by $14, sew that $6 has increased due too less costs, plus the 14% = >20% profit.

   Your posts normally take a bit to decipher (not complaining I do find them amusing) but mixing SloGloese and word math problems are a problem (pun intended). If they are bidding $100/hr for a $40/hr service business models have changed drastically that is a jewelers margin. I can't follow your reasoning maybe there is a SloGloese math as well.   But at our age I think we can Stretch our RacCon math as far as we like. 


 

[SloGlo]

back inna day, eye had a corporate manager explain two me that if won was able to make 40% of billing rate, that person wood be gitting paid well.

a billing rate must include awl costs two bee practical. costs mayinclude overtime, weather paid oar knot, unless a separate billing is contracted fore o.t.

[hamsamich]

I actually saw the bill SRS was getting 2010 thru 2012 and it was about 70%.  It was billed as an hourly rate with an extra 200 hours for OT allowed.  It was all hourly and not a hard annual contract.

[Marlin]

I actually saw the bill SRS was getting 2010 thru 2012 and it was about 70%.  It was billed as an hourly rate with an extra 200 hours for OT allowed.  It was all hourly and not a hard annual contract.

Per diem, insurance, etc compensated or paid through the hourly? This will be a government service contract at SRS that requires the vendor to comply with a set of rules and is different from a commercial power plant. Each DOE site has a contract management group due to the complexity of government contracts. The site operators are prime contractors that hire subcontractors for specific functions.

[hamsamich]

all I remember is i was shown a receipt/invoice that had my hourly rate on it for what I was billed.  I didn't have any insurance offfered to me thru the company.  it was about 70% after per diem was taken out.  the rate included per diem.  so I treated per diem as a pass thru and calculated my hourly rate minus the per diem.  It was about 30% higher than my hourly rate.  my company told me my travel home every month came out of a different pot of money...I didn't see the sheet on that part of it. 

[Marlin]

all I remember is i was shown a receipt/invoice that had my hourly rate on it for what I was billed.  I didn't have any insurance offfered to me thru the company.  it was about 70% after per diem was taken out.  the rate included per diem.  so I treated per diem as a pass thru and calculated my hourly rate minus the per diem.  It was about 30% higher than my hourly rate.  my company told me my travel home every month came out of a different pot of money...I didn't see the sheet on that part of it. 

Was it a short term contract supporting a project? Staff augmentation tends to be under the Service Contractors Act in DOE that clearly is not. To stay on topic contractors are paid by contract and "a" contract does not really represent the companies bottom line as they probably have a number of them and pay will likely follow new/renewed contracts.

YMMV