Undertipping teaches valuable lessons

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Tiriol
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Re: Undertipping teaches valuable lessons

Post by Tiriol »

bobalot wrote:
Simon_Jester wrote:As far as this issue goes, you live in an ideal world, or at least an ideal country.
Ideal country? Think rest of the Western World. It's only your country with this retarded custom. I love it when people assume that American customs must be the norm for hundreds of millions of other people.
Which doesn't change the crux of his argument at all. This problem is US-centric, something which Simon_Jester admitted.

Is there any particular reason why the service workers etc. are so badly paid in USA? If they actually have to depend on tips (which ideally should be a way to reward someone for an excellent service) just to manage, the wage system is beyond shitty.
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Re: Undertipping teaches valuable lessons

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Tiriol wrote:
Which doesn't change the crux of his argument at all. This problem is US-centric, something which Simon_Jester admitted.

Is there any particular reason why the service workers etc. are so badly paid in USA? If they actually have to depend on tips (which ideally should be a way to reward someone for an excellent service) just to manage, the wage system is beyond shitty.
See here they are allowed to pay waitresses who work during breakfast hours less then minimum wage, because there is the expectation that tips will cover the loss. Yet outside of breakfast hours they get paid the standard wage. Personally I find this fucked up but I tip heavily regardless of the wage situation, when there are only three decent restaurants in the whole town it pays to be on good terms with them.
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Re: Undertipping teaches valuable lessons

Post by Darth Wong »

Rye wrote:They should be paying them properly in the first place. Tips are something you give if you're impressed, not as standard to make sure you get what you've already paid for without shit in it.
We customers prefer to pay as little as possible for a breakfast meal; why should you find it scandalous that the restaurant owner doesn't pay the wait staff much money either?

It's not as if restaurants are necessarily swimming in money; they go out of business regularly, as anyone can see from noticing shuttered restaurants while driving around town.
If you bought a laptop from PC world, should you have to pass the guy 50 quid so he doesn't fucking stab the lcd screen with a pen? If the market can't sustain those prices, raise them so all the fucking costs are covered. That's how it's meant to work.
If I insisted on paying such low prices that the store has a pretty good chance of going bankrupt, maybe I shouldn't be particularly surprised if I do not get enthusiastic service.

There's this weird moral disconnect that we consumers often apply to our shopping habits: we say that businesses are morally responsible for the things they do in order to lower their prices, but for some reason, we think we bear no responsibility for stridently demanding those low prices.
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Re: Undertipping teaches valuable lessons

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Simon_Jester wrote:But if you want to tell us we are "AARGH DOING TIPPING WRONG!" because the way we handle tips in the context of our minimum wage laws offends your sensibilities, I'm going to disagree. Because I don't think "it offends my sensibilities" is a good argument in this case.
I guess it's great I never said that, then. I'm talking about the circular nature of this 'habit' or 'custom', whereby it's wide acceptance means it will never go away, because it's such a powerful expectation. Hell, I bet there are people in hospitality in the US so stupid they'd HATE higher wages/less tipping, because they'd feel like they were making less (and probably that everyone would magically stop tipping). Being in a country where everyone is expected to tip for regular service means a) less pressure to increase wages b) people take lower wages because of the expectation of recieving tips and c) concern for tipping visible low wage earners but no interest in improving wages. The tipping 'culture' creates the tipping culture. It's bizarre and hilarious.

What I find ironic about Mike's point with regard to wages -> price, is that in AU the lowest paid food service goons are probably the 14 year olds working at McDonalds etc; those chains have (largely) fixed prices and thus have nowhere to move on wages (insofar as their chain makes megabucks anyway). Overpriced cafes or bars in general pay better since their prices are higher. Crappy chippies or restaurants often employ family members to keep costs down.

Of course this hasn't destroyed the food service industry yet. :)
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Re: Undertipping teaches valuable lessons

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If a restaurant opened up in your town which advertised "we do not ask for or accept gratuities" but had significantly higher prices, would you skip other restaurants and go there instead?
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Re: Undertipping teaches valuable lessons

Post by Colonel Olrik »

Darth Wong wrote: There's this weird moral disconnect that we consumers often apply to our shopping habits: we say that businesses are morally responsible for the things they do in order to lower their prices, but for some reason, we think we bear no responsibility for stridently demanding those low prices.
Sure, but that's entirely normal. Referring to my discussion with Broomstick, I felt rich in California precisely because restaurants and shops are so cheap in comparison to Munich, even if the rate was 1 Eur/1 dollar. Germans are very traveled, they know well that our country is expensive and it's a favorite national hobby to bitch about the prices of this year's beer. Still people continue going out and spend their money and the system works precisely because restaurants have some degree of associative power, employees have minimum salaries established by law and it isn't a free for all consumerist society.
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Re: Undertipping teaches valuable lessons

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Darth Wong wrote:If a restaurant opened up in your town which advertised "we do not ask for or accept gratuities" but had significantly higher prices, would you skip other restaurants and go there instead?
Why would I? Tipping in Australia doesn't perpetuate a culture of low wages. I enjoy tipping for quality service in AU, precisely because it's actually a 'gratuity' and not 'my enforced socialist wage-boosting stimulus'. :) People even appreciate it, instea of it just being part of their pre-calculated wage as it apparently is where tip shortfall is made up by employer (which pretty much makes the whole system moot anyway).
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Re: Undertipping teaches valuable lessons

Post by Rye »

Darth Wong wrote:We customers prefer to pay as little as possible for a breakfast meal; why should you find it scandalous that the restaurant owner doesn't pay the wait staff much money either?
I don't find it scandalous that a boss would want to fuck over the workers, I find it scandalous that they can get away with it.
If I insisted on paying such low prices that the store has a pretty good chance of going bankrupt, maybe I shouldn't be particularly surprised if I do not get enthusiastic service.

There's this weird moral disconnect that we consumers often apply to our shopping habits: we say that businesses are morally responsible for the things they do in order to lower their prices, but for some reason, we think we bear no responsibility for stridently demanding those low prices.
I don't see where that comes from. We have sensible minimum wage laws. We don't have "some minimums are more minimum than others." When I went to NY I was shocked by the low cost of food everywhere, and certainly wasn't "stidently demanding" them. Hell, a domino's pizza over there was around a third what we pay for ours.
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Re: Undertipping teaches valuable lessons

Post by Aeolus »

Stark wrote:
Darth Wong wrote:If a restaurant opened up in your town which advertised "we do not ask for or accept gratuities" but had significantly higher prices, would you skip other restaurants and go there instead?
Why would I? Tipping in Australia doesn't perpetuate a culture of low wages. I enjoy tipping for quality service in AU, precisely because it's actually a 'gratuity' and not 'my enforced socialist wage-boosting stimulus'. :) People even appreciate it, instea of it just being part of their pre-calculated wage as it apparently is where tip shortfall is made up by employer (which pretty much makes the whole system moot anyway).
While the law does say that the employer has to make up for a shortfall in practice it doesn't happen. I waited tables and tended bar for around 15 years and I never saw that happen. If a waitress or waiter was not making enough in tips over a pay period to need the employer to cover him the employer would simply fire them.
As for waiters making a wage instead of tips ,minimum wage is or was at the time I was doing it 5 and change an hour. Even at Chili's a halfway decent waiter should be hitting 15 to 20 an hour after tips. I really doubt most employers would be willing to pay a salary like that. It may seem like a silly way of doing thing but it does work. The only time the waitress is getting screwed is when cheapskates want to stiff her. If they don't want to tip they can easily go to an establishment where tips are not expected. Like a fast food place or a buffet.
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Re: Undertipping teaches valuable lessons

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Tiriol wrote: Is there any particular reason why the service workers etc. are so badly paid in USA?
It doesn't take a heavy amount of education or job training to be able to perform the tasks required in most of these jobs. Potential employees are thus easier to find (especially in a competitive job market) and replace if desired by the business owner. I don't like it one bit, but it's a sad reality.

If I may be so bold as to do some minimum wage comparison to add to the discussion, number in parentheses is the equivalent in American Dollars. Currency conversions are done with Yahoo's currency converter. For simplification I'll only post wages as they apply to people aged 18 and up.

Australia - National minimum wage of A$543.78 per week ($457.40/week or $11.435 per hour based on a 40 hour work week)

Canada - Varies by province, with British Columbia's C$8.00/hr being the lowest ($7.34/hr which is a tiny bit higher than the US Federal Minimum Wage). BC has a stipulation where people with under 500 hours of job experience have a minimum wage of C$6 per hour, ($5.51)

New Zealand - NZ$12.50 per hour for workers 18 and up ($8.60/hr)

UK - £4.77 per hour for workers 18-21 ($7.80/hr) and £5.73/hr ($9.37/hr)

USA - Varies by state with a Federal Minimum Wage of $7.25/hour. There are differences including several states with $8.00/hr or more as their minimum. However, American Territories may have lower minimums although some territories have scheduled increases that will bring them up to the same minimums as the states. One notable excpetion is Wyoming, can any resident of that state PLEASE tell me why Wyoming seems to be exempt and has a stated minimum wage of $5.15/hr?

As for employees recieving tips getting less than the minimum here in the US, these are the examples I can verify.

Colorado (PDF File) -
$4.26 per hour effective January 1, 2009
Illinois (PDF) -

According the the chart on the linked PDF, the current minimum for tipped employees is $4.50/hour with a scheduled increase to $4.65 on July 1st, 2010.

Iowa (PDF) -

According to this FAQ the minimum wage for tipped employees is $4.35/hr

Massachusetts:
2. Can tipped employees be paid a different minimum wage?

Yes, the minimum wage for tipped employees (employees who receive more than $20 a month in tips) is $2.63 per hour. However, for tipped employees to be paid this rate, they must be informed of the law, must receive at least minimum wage when tips and wages are combined, and all tips must be retained by the employee or distributed through a valid tip-pooling arrangement. Tip-pooling arrangements must conform with the requirements of M.G.L. c. 149, §152A
Rhode Island

Not from a government agency, but this is supposed to be information from the latest edition of the Rhode Island Labor Law poster.
The Rhode Island minimum wage is $7.40 per hour or $2.89 for tipped employees.
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Re: Undertipping teaches valuable lessons

Post by Simon_Jester »

Tiriol wrote:
bobalot wrote:Ideal country? Think rest of the Western World. It's only your country with this retarded custom. I love it when people assume that American customs must be the norm for hundreds of millions of other people.
Which doesn't change the crux of his argument at all. This problem is US-centric, something which Simon_Jester admitted.
Exactly. Broadly speaking, on this issue the world can be divided into three parts:
-The ideal world: most of the West. Tips are not required for anybody, because of high minimum wages. Assuming there's no downside to high minimum wages, this is wonderful, and I'm not saying there IS any downside.
-The totally fucked up world: places where not only is mass tipping expected, but it's routine in places where it causes major social problems, such as at police checkpoints. Baksheesh is not a good system.
-The partially fucked up world: the US and any other countries where tipping is still routine and expected in some places, but not in places where it causes crippling problems. Waiters may expect a tip in the US, but police officers don't.

I, and roughly three hundred million other Americans, AT LEAST, live in the "partially fucked up world." I know this. But I maintain that if you come over to the partially fucked up world, you don't have grounds to bitch about having to choose whether to tip waiters or be seen as an asshole. The issue is not so important that your personal preferences have a sacred right to trump the local custom, especially since it's money you'd be spending ANYWAY if we went to the ideal system and the restaurants had to charge more to pay their waiters more.
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Stark wrote:I guess it's great I never said that, then.
Yes, it is.
I'm talking about the circular nature of this 'habit' or 'custom', whereby it's wide acceptance means it will never go away, because it's such a powerful expectation. Hell, I bet there are people in hospitality in the US so stupid they'd HATE higher wages/less tipping, because they'd feel like they were making less (and probably that everyone would magically stop tipping).
I suspect it would go away after a few years; when you get down to it these things are all about the money. Remember, most of the high minimum wage world had to go through that shift at some point themselves, unless it was never customary to tip there, even before the minimum wage was invented.
Being in a country where everyone is expected to tip for regular service means a) less pressure to increase wages b) people take lower wages because of the expectation of recieving tips and c) concern for tipping visible low wage earners but no interest in improving wages. The tipping 'culture' creates the tipping culture. It's bizarre and hilarious.
Yes, but it also happens in any place that has a society. Many social rules are arbitrary, because there are usually several ways to solve a given social problem that will work.* But you still have to pick ONE such solution, and whichever one you pick becomes self-reinforcing.

Take personal space. There's no obvious law of nature that explains why acquaintances should be uncomfortable standing a handspan apart and talking to each other. And yet in many (all?)* parts of the world, they do. If we were meeting in person and I got up in your face like that, even if I was talking and acting just like any normal person would, you'd probably be disturbed.

That's not because it's objectively better for people to maintain a larger personal space, it's because it is a custom to do so. The custom is arbitrary and self-reinforcing, because people use it as a shibboleth. We get into the habit of shunning or punishing people who break custom, probably because it's a convenient (if not very reliable) way to identify people likely to make other kinds of trouble. People who don't follow local customs are either outsiders (in which case they aren't part of your social network and you have no particular reason to trust them), or somehow messed up in the head (in which case they are unpredictable and liable to start doing things that it will cost you serious time or effort to handle).

And yes, it's kind of dumb when you put it that way. It is dumb, but it's also a quick-and-dirty solution to a difficult social problem.
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Re: Undertipping teaches valuable lessons

Post by PhilosopherOfSorts »

Australia - National minimum wage of A$543.78 per week ($457.40/week or $11.435 per hour based on a 40 hour work week)

Damn, $457.40 a week, that's more than I make in two, tips included. Now I see why Stark doesn't feel bad about not tipping, if I made that much I wouldn't even expect tips.

Hope you've got an extra room Stark, you're about to be housing an illeagal American :)
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Re: Undertipping teaches valuable lessons

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PhilosopherOfSorts wrote:Australia - National minimum wage of A$543.78 per week ($457.40/week or $11.435 per hour based on a 40 hour work week)

Damn, $457.40 a week, that's more than I make in two, tips included. Now I see why Stark doesn't feel bad about not tipping, if I made that much I wouldn't even expect tips.

Hope you've got an extra room Stark, you're about to be housing an illeagal American :)
It's a 38 hour week actually. Minor nitpick.
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Re: Undertipping teaches valuable lessons

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With a 38 hour week that brings the Aussie minimum wage slightly above $12 per hour, which I would be exceptionally grateful to have right now.
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Re: Undertipping teaches valuable lessons

Post by ArmorPierce »

haha I'm a college graduate with a good gpa in two very marketable majors (double majored) and I make less than that (per hour).

When people do hours in a workweek I'm always confused as to whether they include lunch or not. I work 8 hours a day + half hour lunch
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Re: Undertipping teaches valuable lessons

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I believe Australia has the second highest minimum wage in the world, after Denmark, IIRC.

Waiters* actually get paid more than that: base rate of about $US12.43/hr ($US472.30/week), plus 1.1x the base rate if the majority of the shift is between 6pm and 6am, 1.25x the base rate on Saturday from 12am to 1pm, 1.5x the base rate on Saturday 1pm to midnight and double time on Sundays. (That's for permanent employees: casuals add on 20% more, but don't get sick leave or holiday pay.) Given that waitstaff usually work shit hours in the evenings or on weekends, that means that their pay is usually above that.

Award rate is the minimum rate that businesses can pay in a certain field. If a restaurant wants good waitstaff, then they can pay more than that if they want. The Liberal party actually lost the last election in large part because they wanted to make Enterprise Agreements (read: large companies negotiating to pay their workers less than award wage) more common.

*I couldn't find the federal award, but meh.
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Re: Undertipping teaches valuable lessons

Post by Darth Fanboy »

ArmorPierce wrote: When people do hours in a workweek I'm always confused as to whether they include lunch or not. I work 8 hours a day + half hour lunch
I'm certain that for us in the US they're only counting paid hours with the typical workweek being 8 hours a day, five days per week.
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Re: Undertipping teaches valuable lessons

Post by Darth Fanboy »

Lusankya wrote:I believe Australia has the second highest minimum wage in the world, after Denmark, IIRC.
US State Dept. 2008 Human Rights REport on Denmark
e. Acceptable Conditions of Work

The law does not mandate a national minimum wage; minimum wages are negotiated between unions and employer associations. According to the terms of the country's largest collective bargaining agreement, negotiated in the spring and covering almost the entire industrial sector, the minimum wage
is 100.65 kroner (approximately $19) per hour, exclusive of pension benefits. The wage provided a decent standard of living for a worker and family.
So while its not the same as a Federal minimum wage, these negotiated minimums appear to dwarf even Australia's. $19 an hour would enable me to live quite comfortably in the US.
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