Multiple minimums: Congress hasn't raised the federal minimum wage in years, but many states are increasing theirs.BACKGROUND The first minimum-wage law passed in 1938 during the Depression, when millions rived in poverty. There has been a debate ever since between those who say minimum-wage hikes hurt job creation, particularly for the young and unskilled, and those who see it as a guarantee of basic living standards living standards npl → nivel msg de vida living standards living npl → niveau m de vie living standards living npl for workers. CRITICAL THINKING * Students should understand that although state or federal minimum wages are set at a certain level, employers are always free to pay higher salaries. Ask students why an employer might pay salaries higher than the required minimum wage. * (One reason is to compete with other employers for available workers.) * One of the arguments against the minimum wage is that it is a government intrusion between workers and employers. Should government have a role in requiring private businesses to pay a minimum wage? * Does government have a social responsibility to try to ensure fair Living standards, or is that better left to the employers and employees to sort out? DISCUSSION QUESTIONS * Why do you think there is such disagreement over basic facts between supporters of and opponents of enacting a higher minimum wage? * Should the federal minimum wage be structured according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a city's or a region's living costs? * Should the minimum wage be permanently Lower for teens or others who are not their family's primary wage earners? WRITING PROMPT * Have students write a class Letter or e-mail to their U.S. Representative supporting or opposing a higher minimum wage. FAST FACTS * The federal minimum wage for workers under 20 is $4.25 per hour for the first 90 days, after which they must be paid $5.15. * The minimum wage has been raised 19 times since 1938. WEB WATCH www.dol.gov/dol/topic/ wages/minimumwage.htm This U.S. Department of Labor Web site provides more than 25 links to questions about the federal. minimum wage and related wage and labor issues. While Congress has not raised the federal minimum wage for almost 10 years, some states have taken action on their own: Nearly half of the civilian labor force now lives in states where the minimum wage is higher than the rate set by the federal government. Seventeen states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). have set minimum wages that exceed the federal minimum of $5.15 an hour. And this year, lawmakers in dozens of the remaining states will debate raising their minimum wages. The federal minimum wage was last raised in 1997. Since then, efforts to increase it have been opposed by lawmakers and business groups who argue that a higher rate raises costs and, as a result, slows the creation of entry-level jobs An entry-level job is a job that generally requires little skill and knowledge, and is generally of a low pay. These jobs may require physical strength or some on-site training. Many entry-level jobs are part-time, and do not include employee benefits. and particularly hurts young and unskilled workers. In response, labor unions labor union: see union, labor. and community groups have increasingly focused their efforts on the states. And in some areas, "living wage" movements have helped raise minimum wages on a local level. In Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. , N.M., a living-wage ordinance has boosted the minimum to $9.50 an hour. A LONG DEBATE Opinion polls show wide public support for an increase in the federal minimum wage, which falls far short of the income needed to place a family above the federal poverty level. Even the president of Wal-Mart, the country's largest private employer, endorses an increase, saying that workers who are earning the federal minimum can't afford to shop at his stores. "The public is way ahead of Washington," says Bill Samuel, legislative director of the AFL-CIO AFL-CIO: see American Federation of Labor and Congress of Industrial Organizations. AFL-CIO in full American Federation of Labor-Congress of Industrial Organizations U.S. , a federation of labor unions. "They see this as a matter of basic fairness, the underpinning un·der·pin·ning n. 1. Material or masonry used to support a structure, such as a wall. 2. A support or foundation. Often used in the plural. 3. Informal The human legs. Often used in the plural. of basic labor law labor law, legislation dealing with human beings in their capacity as workers or wage earners. The Industrial Revolution, by introducing the machine and factory production, greatly expanded the class of workers dependent on wages as their source of income. in this country, a floor under wages so we're not competing with Bangladesh." The minimum wage has been fiercely debated since it was established in 1938 as part of the Fair Labor Standards Act Fair Labor Standards Act or Wages and Hours Act, passed by the U.S. Congress in 1938 to establish minimum living standards for workers engaged directly or indirectly in interstate commerce, including those involved in production of goods bound under President Franklin D. Roosevelt. Opponents argue that it is a government intrusion into the employer-employee relationship. An increase, they say, drives up labor costs across the board and freezes out unskilled and first-time workers, whom employers may decide not to hire as a result of the increased costs. According to the U.S. Bureau of Labor Statistics Bureau of Labor Statistics (BLS) A research agency of the U.S. Department of Labor; it compiles statistics on hours of work, average hourly earnings, employment and unemployment, consumer prices and many other variables. , in 2004, about 2 million Americans--2.7 percent of the overall workforce--earned the minimum wage of $5.15 or less. (Federal and many state laws exempt certain types of employees from minimum-wage requirements.) They were generally young (half were under 25, and a quarter were teenagers), unmarried, and without a high school diploma A high school diploma is a diploma awarded for the completion of high school. In the United States and Canada, it is considered the minimum education required for government jobs and higher education. An equivalent is the GED. . Advocates of an increase point out that inflation has made the minimum wage worth less today in terms of purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. than at any time since 1955. They also say that raising it does not cause job losses. Tim Nesbitt, former president of the Oregon AFL-CIO The Oregon AFL-CIO is a federation of labor unions in the U.S. state of Oregon that promotes the rights of working people in the electoral and legislative arenas on the local, state and national level. It is an affiliate of the national AFL-CIO. , says that even with a minimum wage of $7.25 an hour, one of the nation's highest, Oregon has had twice the rate of job growth as the rest of the country. The battle is expected to be particularly intense this year in Ohio, one of two states (the other is Kansas) that has a minimum wage below the federal level. Ohio's minimum is $4.25 an hour for small employers, some farms, and most restaurants. A proposed constitutional amendment would raise it to $6.85. HOW MUCH FOR A BURGER? Rick Cassara, a Cleveland restaurant owner restaurant owner n → dueño/a or propietario/a de un restaurante , says that he opposes a mandated wage increase. "It exerts upward pressure on all wages and prices," he says. "If the minimum wage is $7 and I have to pay $8 or $9 to hire a dishwasher, then the cooks are going to say they want more. How much can I charge for that hamburger?" In 2004, voters in Nevada and Florida approved ballot initiatives to raise the minimum wage to $6.15. And in California, where the minimum wage is $6.75, a $1-an-hour increase is being debated. For many workers, increases in the minimum wage may not make enough of a difference. Noemi Rodriguez, a single mother in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , says the minimum wage, which was recently raised from $6.50 to $6.75 an hour in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , means falling short. Rodriguez, 21, now makes $8 an hour as chief photo technician at a chain drugstore. Six months ago, she says, "I earned the minimum wage when I started here, and I was still going hungry. It's not enough to pay utilities, buy food, and take care of my baby." QUIZ 1 NATIONAL 1. A battle to increase the minimum wage above $4.25 is expected this year in which of the following states? a Alabama b Oklahoma c Utah d Ohio 2. Which of the following statements is not an argument used by those who oppose an increased minimum wage? Raising the minimum wage a freezes first-time workers out of jobs. b is a government intrusion into the employer-employee relationship. c violates the Fair Labor Standards act. d raises costs for employers. 3. Briefly explain why supporters of an increased federal minimum wage might cite Oregon's job and wage experience to bolster their argument for a higher minimum wage. 4. Which one of the following is characteristic of workers who were earning the federal minimum wage in 200/,, the latest year for which there are accurate data? They a work principally in manufacturing. b live mostly in Northeastern states. c have not earned a high school, diploma. d have been Laid off from other employment. 5. One of the arguments made by those who support an increase in the federal minimum wage is that a giant corporations earn more than their share of the American economy. b inflation has eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. the purchasing power of those who earn the minimum wage. c most workers Live near the poverty line. d U.S. wages are Lower than in other nations. IN-DEPTH QUESTIONS 1. Last October, a Democratic bill would have raised the minimum wage to $6.25. A Republican counterproposal coun·ter·pro·pos·al n. A proposal offered to nullify or substitute for a previous one. Noun 1. counterproposal - a proposal offered as an alternative to an earlier proposal would have allowed the raise, but would have given exemptions to small businesses. Explain why you would support or oppose each proposal. 2. Should the government guarantee that no American falls, below the federally established poverty Line? ANSWER KEY 1. [d] Ohio. 2. [c] violates the Fair Labor Standards Act. 3. In spite of Oregon's high minimum wage, its job growth is twice that of the rest of the country. [Similar wording is acceptable.] 4. [c] have not earned a high school diploma. 5. [b] inflation has eroded the purchasing power of those who earn the minimum wage. John M. Broder is Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. bureau chief for The New York Times; with additional reporting by Jon Gertner and Anthony Ramirez. |
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