Why doesn’t oxy ever do anything like this? Devon did it at Christmas too. Seems like we are making the company a lot of money, but where is the thank you to employees.
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The below post is spot on and so right. The retirees, low income, and poor are getting hard times put on them. It is proven as well that the lower income folks are audited more than anyone by the IRS because they don’t have the money to fight the IRS. This new inflation bill adds 87,000 more IRS agents and we have less than 1000 billionaires in this country. I feel really bad for the lower income folks and those just trying to make it.
People are starting to spend less. This plus massive govt spending equals more inflation. It hurts those with lower wages the most. So sad.
Maybe make adjustments in our government too.
We need to make some adjustments in our saving and spending habits.
The CPI increased 8.5% during the 12 month period ending March 31, 2022. Your spending power was reduced permanently since your wages didn’t keep up. If you see a similar CPI increase for the period ending 3/31/23, with the same salary increase, your spending power will be reduced again. What economists call “real wages”, which are wages adjusted for inflation, have been going down for the last 18 months or so and will continue to go down unless this ends soon. You may never get back to where you were even if your paycheck is bigger. Dollars are simply worth less.
You will never have an average raise of 8.5%. That is a raise associated with the highest of ratings in great times. By the time raises come around in Q1/2 2023 good times will be a thing of the past.
Some politician on TV must be reading this thread because he celebrated 0% inflation (for the month of July). Must not know that the annual inflation rate is 8.5%. Here's a two question quiz for all of you who think you don't need a salary increase because prices will eventually come down.
- If you didn't get a salary increase of at least 8.5% over the last 12 months, are you better off or worse off?
- Is the inflation rate for the next 12 months going to be positive (prices continue to increase) or negative and reverse the 8.5% increase in prices over the last 12 months?
You people in the office end of the oil business are so spoiled. That’s all.
@5erf+1i3RJ4fb, you are correct!! So the issue of salaries keeping up with inflation has nothing to do with why you get a raise, whether you deserve it, or whether the company wants to or doesn’t want to provide it. The “why” question is not relevant. Not sure why @5uqg+1i3RJ4fb injected that into this thread.
To the last poster, how about raises that are market based to keep our salaries competitive with what other companies pay and performance based to recognize our individual performance?
@5uqg+1i3RJ4fb, tell me what raise a company needs to give??
@5uft+1i3RJ4fb isn’t saying a company wants to give a raise. They never want to pay more. The posters point, I think, seems to be that the cost of living increase caused by inflation is not temporary. In that he is right. The cost of living always increases, although the price of some products and services may go up and down. It is true that you have to get a raise to offset the increase in the cost of living. Of course few companies will give an interim raise and most will simply give a higher annual increase. That’s my two cents.
Tell me why a company would provide an inflation increase if they don’t need to? The kindness of the company’s heart? I just don’t see them doing it unless people are leaving and they have to. Most of us aren’t making $10/hr like McDonald’s employees. Some might be, but most aren’t.
Nice try, but you totally miss the point that inflation is measured over a 12 month period, and that ONLY the beginning prices and the end prices matter, not the ups and downs during those 12 months. Remember this conversation started by a claim that employees did not need a raise to counter inflation since it was going to go back to normal. Tell me any year in the last half century where prices at the end of one year, as measured by the CPI, were less than or even equal to prices at the end of the previous year, other than the minor negative change in 2009 following the financial market meltdown or “Great Recession” as some call it. In any single year, you have to get a raise at least equal to the inflation rate in order not to fall behind, and that raise has to be permanent because history proves that following any year you choose, prices go up again the next year. This is what is known as a cost-of-living raise, and it is necessary every year. In periods of low inflation it is small, but in periods of high inflation it will be bigger, if the intent is just to break even. Or do you think that history be d@mned, this time will be different? OR, do you actually understand this and are just jerking my chain?
Think of inflation in terms of your child growing up. Each year they get taller. Maybe this year they get 10% taller and last year only 2% taller. Would you give them bigger clothes “temporarily” this year because their rate of growth is abnormally higher than normal? If next year they only grow by 1.5%, does that mean they shrunk?? Look at the history of inflation in this country for the last half century. It’s like your child’s growth rate, always positive, prices in general always increasing. Look, if a company tells you they won’t give a higher salary increase because high inflation is temporary, and you believe that, you don’t deserve a higher increase.
Wage freezes don’t work, because they result in employees being worse off since prices continue to rise.
@4fkw+1i3RJ4fb, you were so close, … but still wrong. When this temporary high inflation rate subsides, the annual rate of price INCREASE subsides, not the prices themselves. They stick around and next year or the year after maybe only go up by 3%. But that is 3% over what they are NOW, not 3% over what they were last year or the year before. Inflation is cumulative. The annual inflation rate is the % change in prices over the previous 12 months, not over some arbitrary date when prices were “normal”. Maybe you don’t know, but your annual salary increase in mostly a cost-of-living increase that merely catches you up with prices that have increased due to inflation. You don’t give that back at the end of the year do you? Cause next year prices go up again. When inflation is higher, you need a bigger salary increase just to keep up.
Perhaps the country needs a wage freeze like they did during the 1970s. How would you like that?
The point is, some degree of inflation is always around, but the temporary high inflation of the moment will subside, so there is no need for any company to give employees a permanent raise to deal with a temporary high inflationary moment.
This thread reminds me of that time those ninth graders sat in on my college calculus class lecture on career day.
P1. Inflation, generally discussed in terms of the CPI, almost always goes up.
P2. House prices!
P1. The CPI is a broad measure of price changes.
P1. I give up.
Maybe not delusional, but a little ignorant maybe.
@4lac, you’re right!! And since 100% of your income must be spent on gas, inflation for you is negative, at least for the last quarter. Congratulations! However for the rest of the country, the CPI actually does mean something. And for the rest of us who have seen gas prices go up and down all our lives, we still see inflation (not just gas prices) always in positive territory. How can that be with gas prices going up and down?? (don’t tell anyone but it’s magic).
Here are some more facts to twist your brain into knots. Even with the recent reduction in gas prices, the annual inflation rate for gas alone is still positive. And would you believe that gas and housing could go down and inflation as measured by the CPI will still be positive?
We’re not talking just about the price of gas or house values when we talk about inflation. It’s all of the things regular folks have to spend their paycheck on. And there may be dips in the rate on occasion, for a quarter or two, but in the long run it always goes UP like a staircase.
@4lac+1i3RJ4fb, you didn’t get much out of that reading comprehension class huh? Go back, read it again, think about it some, take a nap, and then give us your comments.
Am I delusional that gas prices have gone down?
In the last 60 years, CPI has been negative (-0.4%) once. That was right after the financial crisis in 2008. If you are waiting for prices to “go back down”, you’re delusional. The Fed wants to bring inflation down to around 2-3%, not reverse it.
A thank you infers a level of corporate loyalty not usually reciprocated by the current generation of oilfinders. You hop from company to company when you do not receive adequate attention your inner child requires. I bet you nicely rewarded with bonuses tied to corporate kpi's, stock awards and long term incentives. Show Oxy you are all in by doing a good job. Good luck!
OK kids, let’s take these one at a time, and slowly so that you can understand.
- Let’s say you get a 10% raise to compensate for 10% annual inflation. You now make 110% of what you previously made, but I have the same buying power that you had a year ago because prices are up 10%. First, your standard deduction is less as a percentage of your pay. Second, depending on what your wages were starting out, you may move up into a higher tax bracket, or more of your wages will move up into the higher bracket that you are already in.
- Yes, prices for certain things do go up and down overtime, but measured across the board, as the CPI or other measures of inflation due, inflation rates are always positive. If you don’t believe me, ask your parents what they earned for their first job out of college. Or you could check out the link below. if inflation went to 0% tomorrow, prices would not go down across-the-board. They would in fact simply not increase from the previous month. The opposite of inflation, or deflation, or negative inflation, is something governments try to avoid. The reason is, if consumers believe that in six months the prices of things will be cheaper than they are today, they will put off their spending which will cause a slowdown in the economy.
2jie I don’t think you know how tax brackets work.
I love the example below from the person who got a raise and is now in a higher tax bracket. He probably will say he worked hard or performed well or sacrificed and deserved the raise. We all know he needs to share his wealth with the government, so they can give it to others. Tax the rich baby!
House prices are going down and they are a significant contributor to the inflation rate. Hopefully the price of bacon will go down soon too.
@2jie - companies doesn’t care about your spending power. They care about being able to compete with other companies for employees. Inflation has nothing to do with competing. Are you telling me that gas prices are only slowing down and are not decreasing? Everything associated with high as prices will be affected. Grow up and learn how to manage your finances.
Having your job is the thank you from the company.
@1imh+1i3RJ4fb, do you even know what inflation is?? When/if inflation “back in check”, that doesn’t mean prices will go back down to what they were before. The price INCREASES will slow down, but not reverse. Right now, wage increases are not keeping up with inflation. If inflation went back to 2% tomorrow, the average worker would still be worse off than they were at the end of 2020 because prices have gone up more than their wages. Not only that, but tax rates are not indexed to inflation. So if you made $100k a year ago, and got a 6% raise, your effective tax rate is higher. So you get hit twice.
No cost of living raise. We all work for the shareholders first and the dividend would be a better place to put it. It is all transitory anyways and a recession is not 2 negative qtrs of GDP these days either. We live in the Bizzaro World these days.
Inflation will never be back in check.
Why would they give you a cost of living raise to deal with inflation? When inflation is back in check should they take the raise back? Manage your finances, cut your spending, and don’t look to your employer to bail you out for your choice of how you spend you money.
Instead of a bonus, how about a cost of living raise to account for the unbelievable inflation we are facing?!?!?!?
Please sir, may I have some more?
Your goal should be to just stay employed. You will be happy with your current pay when oil craters to 45 dollars per barrel once the Ukraine war ends.