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by jjeaff 2708 days ago
But what if another programmer is willing to make me a million for only 25%?

That's how markets work. You get paid what what the market will bear, not what you "should" make.

3 comments

Except if the other side of the market teams up. https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...
That is hard because you have to convince many other people to agree. It's easier for me to just undercut other people by taking less pay. I can for example going remote and live in low living cost area.
On the side of the employees, unions have proven themselves to be good means to improve the situation for employees. Here in Germany they definitely have helped in many industries.

My comment was more about the companies though which may form cartels to drive down employee wages. Companies forming cartels is illegal, while unions are legal in many places.

If unions are the best way to improve compensation why do un-unionized FAANG employees get paid so much more than unionized developers in Europe?
Because they're in Europe.
You're replying in a thread about how those very same FAANG companies colluded to keep engineer compensation artificially low.
Yeah but even at that point faang (or well at that point apple, Ms, google, Netflix didn't exist and Facebook broke the cartel) compensation was significantly more than people in Europe were making.
I've said that they are good means, not the best means. And I guess the reason why they are paid so little is the higher profit margins of FAANG companies as well as probably the alternative in SV that you can found a startup and make much much more if you're good (and lucky).
Different Culture and engineers have a lower social status in Europe in general
Unions are basically legalized price fixing. What happens is that the union negotiate a "fair" price, and then all companies decide to pay no more than said "fair" price. See for example (original is in Swedish):

https://translate.google.com/translate?sl=auto&tl=en&u=https...

That just seems to be reporting the wage levels in Sweden which is one thing unions do price discovery for workers - run surveys.

I suspect your posting in bad faith here and in the usa SAG minimum rates doesn't effect the higher rates that successful actors get.

The problem is that the numbers that gets published by unions in Sweden are taken as law by employers. You don't really know what unions are like if you haven't heard your employer say "We can't give you a bigger raise due to our collective agreement". And since basically all other employers follow the same guidelines you can't get competing offers for significantly more. There is a reason why salaries are very flat in Sweden.

Another way to see it, collective bargaining goes both ways, ie both workers and employers will come to a joint agreement. So if we created a FAANG engineers union and created a joint pay-scale for them, then that would basically be equivalent to the non poaching agreement often derided in discussions like this.

As I said good programmers are underpaid. They should figure out how much they are making their companies and ask for more. The market can often afford to pay more, if you just negotiate better. You can also unionize to get your employers closer to what you are worth to them rather than what they are worth to you.
> just negotiate better

In every other aspect of computers, the industry has finally embraced usability as a desirable goal, and not just for end-users.

On my first computer, you had to read a 100-page user manual and learn exactly what commands to type. In my first programming language, you had to manually allocate (and worse, deallocate) memory. With my first database, we used to have to go type VACUUM regularly. None of these is true today.

Yet even though some of the highest paid people in the world are members of unions and have agents to do their negotiating, programmers seem to have latched onto this idea that if you're not making top dollar or have your ideal working conditions, you should "just negotiate better".

Why stop there? Tell programmers they should "just program better", too.

> You can also unionize

Have you ever organized? I don't think you realize how difficult this is, especially without strong support from an existing union. There's a reason unions heap rewards on people who do it.

Existing unions also have great labor lawyers. A common response to even thinking about unionization is getting fired. (That was in the news recently because it happened 4 weeks ago here in Seattle.) Labor laws aren't what they once were, and there's usually no consequence to the company for firing organizers.

> On my first computer, you had to read a 100-page user manual and learn exactly what commands to type.

Flipside: I can still write software for my first computer without looking anything up, over 30 years after reading those 100 pages. I still know the memory layout, opcodes, assembly etc by heart and it is still the best way today to program that particular computer (which still works in my man cave) today. Yes, today it is all simpler, but the 100 page example I find a plus, not a negative. Maybe you were referring to something but my 100+ page manual was usage and at the same time programming (using was programming beyond the basics) as that was the only way to use the system.

People who make enough to have agents negotiating their salary (famous actors, professional athletes, other celebrity types) are usually looking at an order of magnitude higher compensation than even the best software developers get. At the lower end of the spectrum (lesser-known actors, musicians, etc.) agents are known for enriching themselves as much as helping their clients. They are just sort of accepted parasites on the way compensation is handled.
Suppose I’m working on pulling out some functionality from a large, monolithic application. How much am I making my company?
Depends on what the outcome is. If it makes the site 50% more performant on 25% less hardware, pretty easy to swag it. Same if the outcome makes developers on the team able to ship new functionality 20% faster with 33% fewer bugs.
This seems awfully contrived.

Issue 1: It's very difficult to tell if your contribution got 50% improvement in performance because there were 10 other devs pushing in features and bug fixes. This is the attribution problem

Issue 2: This happens over time. It's very unlikely that your 50% improvement happens every year or month. Because, think for your self, this is compounding with large rates. It grows quickly. 1.5x improvement in 6 cycles (months or years) is 10x. This essentially is the time problem

Issue 3: even if you deliver the results you did, in a large company there's a large bureaucracy and no one person has the ability to increase your salary by that much. This is the control problem.

The problem with this argument is that programmers don’t work alone in a vacuum. How do you account for the support staff? The recruiter that hired you? The cleaning lady? The DevOps people? And so on.

It’s avtually fairly non-trivial to be able to say with even a modicum of certainty how much value a given developer brings to their company.

This is precisely my point! Thank you for getting it and explaining it.

I currently write software used by millions of people. Partly because I’m a backend engineer, I have no real idea how much more the company is making due to my direct efforts. Since they keep paying me, I’m assuming it’s a decent multiple of my carrying cost, but I have no way to measure it.

It's how markets work when wealth is distributed incredibly unevenly, and a weak social safety net makes it intimidating to work for yourself instead.

In other words, markets work that way because that's how the bosses and capitalists want it to work, and have so far been successful at thwarting attempts to use the government to change things.

The simplest and most accurate statement is that it’s an emergent result of the principles of capitalism combined with human nature and not a plot to keep us down.
It's both.