Wednesday, December 20, 2006

It Costs $12 Billion to Run Santas Workshop?

Now this is a neat breakdown of Santas expenses. This line I though was pretty interesting:

Elves, the backbone of the entire enterprise, make about $14.50 an
hour. Benefits at the nonprofit operation match the average at about 40% of
payroll, bringing total elf compensation to $4,228,432.


Workshop operations also required temporary help from Kelly
Services, whose elves-for-hire pitch in during the last two months when
telephone hotlines start buzzing and the mailroom overflows with children's
letters. The extra elfpower comes to $116,970, including data-entry clerks hired
at $14.65 an hour and mailroom clerks hired at $13.20 an hour.


I think these elves are going to unionize after they find out that seasonal temp staff makes more then them. I mean these elves are supposedly highly trained manufacturing workers that in years past have built the toys from scratch. They also have to work in arctic conditions at the North Pole and probably can't leave the area or they freeze to death.

Maybe their low pay reflects globalization since the majority of toys are probably made in China. The days when an elf can make a toy train out of wood or something have gone the way of the buggy whip. Now that same train is made from injection molded plastic in a Chinese manufacturing plant and then shipped to the North Pole. The elves now simply unload the pallets and then take the toys and load up Santa's Sleigh for Dec 24.

Perhaps if the elves unionized they would make the same as dock workers in the US which is $19.94 per hour and increases by $1 per hour after accumulating 1,000 hours. I wonder if Santa would be a cruel union breaker and keep his elves from making that extra $5.44 per hour by any means necessary.

I guess the elves are lucky since Santa could go to a Japanese automaker model where he has the toys made in the target country (or shipped there) and then warehouse them for that Dec. 24th delivery. That way he would only need tech guys and data entry clerks to update his Naughty/Nice Database and sleigh and reindeer maintenance engineers in his Arctic Lair. Santa could then cut his entire elf staff and reduce delivery time and cost.

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