Gucchi, Ferrari, Canlis restaurant, the Ritz Carlton, and countless other businesses charge premium rates for their products, services, or food and have only grown and expanded. If you compete with someone elses wage, you'll attract people who are focused on the bottom dollar.
Focus on the value provided and it's a completely different story. English is your first language? market it. You know and understand American culture, or the cultures of more afluent countries? use that to your adantage. Higher minimum wages only barr entry level workers from getting into the market place and it makes the cost of products, services and food go up because a business can't take the extra cost of increased minimum wages out of their bare minimum profit margins or else they'll go out of business and leave even more people unemployed without any oppertunity of earning a higher wage. Minimum wage is not meant to support someones livelyhood, only an oppertunity to gain the skill set to earn higher wages, if the minimum wage person is willing to learn the skill set to earn higher wages.
I would agree that the wages of less than $3 are meager at best. I will say, however, that a trade only exists because it is beneficial to both parties. When cheap clients like this leave the site, a job that could've been created is now destroyed. There are less alternatives for the workers, especially the poorest ones who would accept this wage. They say that about half of the world lives on less than $2 a day. Although to some of us, these wages are petty, to some it means the world. We can tell employers to pay at least $3 an hour or they can leave the site, but this only reduces the supply of labor. Upwork was the solution to the poorest of people and it still is, but there are those who are incompetent and have low skills so they cannot find work here. It is stingy clients like this that provided them with a job. I hope that Upwork reconsiders
Wrote a big reply, internet went off, lost it all. Gutted. It basically said that you're wrong, but using lots more words and examples why.
@Spurgeon B wrote:
there are those who are incompetent and have low skills so they cannot find work here.
And you would want incompetents with low skills, and parasitic wanna-be-clients who exploit their desperation on this platform why, exactly?
Asides, this policy was introduced over 2 years ago. It isn't going away.
I just mentioned that a trade has to be beneficial for both parties to exist. In your vantage point, it may be exploitation, but from those who depend on those wages it is their subsistence. It is the low skill, incompetent workers who need the experience and opportunity to eventually raise their wages. Everyone has to start somewhere. To use an analogy: Payday loans may be exploitative to some, but to many it was an alternative that they needed and it was beneficial to both parties. Though the interest rates were exorbitant, that person was able to receive the funding needed to cover their short-term emergency. Similarly, people don't have to utilize a lower valued alternative. They only do so after they weigh what their options are. I don't see why it matters to you anyhow. It doesn't affect you, because you seem like an intelligent person who would probably not accept such low wages. Also, it doesn't seem that you have the need to hire such low paying workers, so why bother advocating for the $3/hr. wage? How does this policy affect you specifically? Is it because you care for the reputation of the site? Or does it annoy you to see such low paying work?
Spurgeon, Upwork is not arguing with any of the facts that you cite. Nor is Upwork arguing with your philosophy on this matter.
It is simply making a business decision regarding where it wants to position itself in the marketplace. Upwork finds that it is profitable to set a certain minimum hourly rate.
There is no need for you to look any further than that for the reasonining behind the rate.
Upwork's decision does not prevent you from using other platforms or alternative means of hiring people or working as a freelancer which allow for lower hourly rates, no hourly rate minimum or higher minimum rates. There is a lot of freedom going on here.
@Spurgeon B wrote:
It is the low skill, incompetent workers who need the experience and opportunity to eventually raise their wages. Everyone has to start somewhere.
Yes. Everyone CAN start "somewhere!"
It does not have to be at sweatshop rates, and it does not have to be here.
Upwork has stopped accepting the kind of freelancer who would be a candidate for such rates anyway, and if it deters the bottom-dweller clients who come here in the hope of finding people to exploit then all the better.
Just because something doesn't affect somebody, doesn't mean it's not important. Should I ignore child poverty, human trafficking, modern day slavery and poaching of endangered species.... just because it doesn't directly affect my day to day life? Or maybe you're happy to ignore such things if they mean you can pay the lowest amount possible, to the people you so kindly provide work for?
The policy doesn't affect me either. The people who had those wages probably didn't see their wage go up because of the change. They probably lost their job. That didn't help them at all. You can make employers raise their wages to continue on the site, but you can't force them to hire. The person who started this post will no longer hire here. Will you then provide for the workers who lost their jobs?
@Spurgeon B wrote:
The person who started this post will no longer hire here.
1) You know this.... how? If I had a Dollar for every post that announced someone stamping their feet and abandoning the site who is still here years later I could retire tomorrow.
2) This is a business, not a charity. The sweatshop mentality of that market (on both the client and the freelancer side) was not a profitable or beneficial to have market segment. So good riddance.
Nobody needs to have "lost their job" as clients were able to continue their relationships with their existing freelancers below the minimum rate. They just can not hire any new ones at that price.