A living wage is the minimum income needed for a worker to meet their basic needs. This is not the same as the subsistence that refers to the biological minimum. Needs are defined to include food, housing, and other essential needs such as clothing. The purpose of living wage is to enable a worker to earn a decent but basic standard of living. Due to the flexible nature of the term 'need', there is no one universally accepted measure of how much wages are worth and therefore varies by location and type of household.
Living wages, in some countries such as Britain and New Zealand, generally mean that a person working 40 hours a week, with no additional income, should be able to afford the basics for a simple but decent living, such as food, shelter, utilities, transportation , health care, and child care. The wage advocate has defined a living wage as a wage equal to the poverty line for a family of four. Her income should enable the family to 'secure food, shelter, clothing, health care, transportation, and other necessities to live in a modern society'. The definition of living wage used by the Greater London Authority (GLA) is a threshold wage, calculated as 60% of the median income, and an additional 15% to allow for unexpected events. Locality without subsidized government services such as medical care and children is usually a factor in these costs in calculating decent wages. The Alliance for Fair Societies, from Seattle, defines their living wage to include these factors, along with the cost of housing, transport, education and pensions, and then adds a 10% margin for debt and savings payments.
The living wage is different from the minimum wage because the latter is established by national law and may fail to meet the requirements to have a basic quality of life that makes the family dependent on government programs for additional income. Living wages, on the other hand, are usually only adopted in the municipality. In economic terms, living wages are similar to the minimum wage because it is the base price for labor. This is somewhat different from the basic necessity that the basic needs model usually measures the minimum level of consumption, regardless of source of income.
In the 1990s, the first contemporary live wage campaign was launched by a US community initiative addressing the increasing poverty faced by workers and their families. They argue that employees, employers, and society all benefit from living wages. Employees will be more willing to work, helping employers reduce employee turnover, and it will help the community when people have enough decent lives. These campaigns emerged in part in response to Reaganomics and Thatcherism in the US and Britain, respectively, which shifted macroeconomic policy toward neoliberalism. Living wages, by increasing the purchasing power of low-income workers, are supported by Keynesians and post-Keynesian economies that focus on stimulating demand for improving economic conditions.
Video Living wage
History
The concept of a living wage, though not defined as such, can be traced back to the work of ancient Greek philosophers such as Plato and Aristotle. Both debate income that takes into account the needs, especially those that ensure communal goodness. Aristotle saw self-sufficiency as a condition for the happiness which he defined as, 'what by itself made life worthy of choice and nothing.' When he places the responsibility in ensuring that the poor can earn sustainable living in the state, his ideas are seen as early examples of support for decent wages. The evolution of this concept can be seen later by medieval scholars such as Thomas Aquinas who argue for 'fair wages'. The concept of fair wages is related to a fair price, that is, that allows everyone to access needs. Prices and wages that prevent access to necessities are considered unfair because they will jeopardize the virtues of those who do not have access.
In Wealth of Nations, Adam Smith acknowledges that the increase in real wages leads to "an increase in the state of the people below" and therefore a benefit to society. Growth and freedom systems are the means by which the poor work for higher wages and an acceptable standard of living. Increased real wages are guaranteed by growth through increased productivity to a stable price level, ie, prices are not affected by inflation. A system of freedom, guaranteed through political institutions where even "lower ranks" can secure opportunities for higher wages and an acceptable standard of living.
Servants, laborers and workers of all kinds, constitute the largest part of any major political society. But what improves most circumstances will never be regarded as an inconvenience to the whole. No society can thrive and be happy, where most of its members are poor and miserable. It is just equality, in addition, that those who feed, dress, and surrender the whole body of the people, must have a share of their own work to be themselves adequately fed, clothed and nested.
Based on these writings, Smith suggests that workers should receive the same share of what labor produces. For Smith, this fair share amounts to more than subsistence. Smith equated the interests of labor and land interests with a comprehensive social interest. He reasoned that when wages and rental rates rise, as a result of higher productivity, the growth of society will occur so as to improve the quality of life for most of its members.
Like Smith, the proponents of the living wage argue that greater good for society is achieved through higher wages and living wages. It is said that governments should strive to align their interests in pursuit of profit with the interests of labor to generate social benefits for the majority of society. Smith argues that higher productivity and overall growth lead to higher wages which in turn bring greater benefits to society. Based on his writings, one can conclude that Smith will support a living wage commensurate with overall economic growth. This, in turn, will produce more happiness and joy for people, while helping to get families and people out of poverty. Political institutions can create a system of freedom for individuals to ensure opportunities for higher wages through higher production and stable growth for society.
In 1891, Pope Leo XIII issued a papal bull called Rerum novarum, regarded as the first expression of the Catholic Church on views that support decent wages. The Church recognizes that wages should be enough to support a family. This position has been widely supported by the church since then, and has been reaffirmed by the papacy on several occasions, such as by Pope Pius XI in 1931 Quadragesimo anno and again in 1961, by Pope John XXIII writing in the encyclical Mater et magistra. Recently, Pope John Paul II wrote, "Therefore in every case a fair wage is a concrete means to verify the whole socioeconomic system and, in any case, to check that it is functioning properly."
Maps Living wage
Contemporary thinking
Different ideas about decent wages have been put forward by modern campaigns that encourage locality to adopt them. Wage supporters argue that wages are more than just compensation for labor. It is a means of securing life and it leads to a public policy that addresses both the level of wages and modesty. Contemporary research by Andrea Werner and Ming Lim has analyzed the work of John Ryan, Jerold Waltman and Donald Stabile for their philosophical and ethical insights on decent wages.
John Ryan argues for a living wage from a rights perspective. He regards the living wage as a right which all workers are entitled to 'the common gift of nature'. He argues that the ownership of private resources hinders access to them by others who will need them to defend themselves. Thus, the obligation to fulfill the right of living wage depends on the owners and entrepreneurs of private resources. His argument goes beyond that wages should provide only subsistence but it must provide the human with the ability to 'develop within reasonable limits all [their] faculty, physical, intellectual, moral and spiritual.' The living wage for him is 'the amount of remuneration that is sufficient to maintain the labor politely' .
Jerold Waltman, in A Case for Living Wages, argues for living wages not based on individual rights but from a communal perspective, or 'civil republicanism'. He sees the need of citizens to connect with their communities, and thus, sees individual and communal interests as inseparably bound. The two main problems that conflict with citizenship republicans are poverty and inequality. Living wages are meant to overcome this by providing a material base that allows individuals to have an autonomous level and prevent disproportionate income and wealth that will inevitably lead to a social gap between the rich and the poor. The living wage further allows political participation by all classes of people necessary to prevent the rich political interests from undermining the needs of the poor. These arguments for living wages, taken together, can be seen as elements necessary for 'social sustainability and cohesion'.
Donald Stabile argues for living wages based on moral economic thinking and themes related to sustainability, ability and externalities. In general, Stabile suggests that sustainability in the economy may require people to have the means to 'decent accommodation, transportation, clothing and personal care'. He qualifies statements when he sees individual needs as contextual and therefore can change over time, between cultures and in different macroeconomic circumstances. This shows that the concepts and definitions of living wages can not be made objectively in all places and at all times. Stabile's idea of ​​the ability to make direct reference to Amartya Sen's work on the ability approach. A wage-worthy bond is the idea that income is an important, though not exclusive, means for ability. Improving people's ability enables them to function better in the community as well as workers. This ability is further derived from parents to children. Finally, Stabile analyzes the lack of proper wages as the imposition of negative externalities on others. This externality is the depletion of labor stocks by 'exploiting and laborious'. This leads to economic inefficiency because businesses end up producing too much of their products because they do not pay for all labor costs.
Other contemporary accounts have taken on the theme of externalities that arise because of the lack of proper wages. Muilenburg and Singh see welfare programs, such as housing and school meals, as subsidies for employers that allow them to pay low wages. This subsidy, taking the form of externality, is of course paid by society in the form of taxes. This notion is repeated by Grimshaw who argues that employers balance the social costs of sustaining their labor through tax credits, housing, benefits and other wage subsidies. The issue was raised during the Democratic presidential election of 2016 in the United States, when presidential candidate Bernie Sanders mentioned that "struggling working families should not need to subsidize the richest families in the country", and therefore, imply that the major Walmart retailers, by the richest families in the country, does not pay fair wages and is subsidized by taxpayers.
Implementations
Australia
In Australia, in 1907 the Harvester Judgment decided that employers were required to pay their employees on a wage that guaranteed them a reasonable standard of living for "a human being in a civilized society" to live in "the expected frugal comforts of today's standard," regardless of the employer's capacity to pay. Judge Higgins set a wage of 7/- (7 shillings) per day or 42/- per week as a 'fair and reasonable' minimum wage for unskilled workers. The verdict was later canceled but still influential. From the Harvester Judgment there emerged the Australian industry concept of "basic wage". For most skilled workers, in addition to the basic wage, they receive margins above the basic wage, comparable to the court or the commission's assessment of a group of skilled workers. In 1913, to keep pace with the rising cost of living, the basic wage was raised to 8/- per day, the first increase since the minimum set. The first Retail Price Index in Australia was published in late 1912, the Series A Index. From 1934, the base wage was indexed against the C Series Price Index of the household price. The concept of basic wages is repeatedly challenged by entrepreneurs' groups through Basic Wage and Metal Trading cases, where employers argue that basic wages and margins should be replaced with "total wages". The basic wage system remained in effect in Australia until 1967. It was also adopted by several state courts and used in several states during the 1980s.
Bangladesh
In Bangladesh the salary is the lowest in the world. During 2012, wages range from about US $ 38 per month depending on the exchange rate. Studies by Professor Doug Miller during 2010 to 2012, have highlighted growing global trade practices at Towards the Cost of Sustainable Workforce in UK Fashion Retail . The white paper published in 2013 by the University of Manchester, seems to suggest that competition among purchasing organizations has implications for low wages in countries such as Bangladesh. This has set the roadmap to achieve sustainable wages.
United Kingdom
The city-level wage regulations began in some cities of England in 1524. The national minimum wage law began with the Trade Council Act 1909, and the 1945 Wage Board Act set minimum wage standards in many sectors of the economy. The Wage Council was abolished in 1993 and subsequently replaced with the national minimum wage in accordance with the law by the 1998 National Minimum Wage Act, which is still in effect. Rates are reviewed annually by the country's Low Payment Commission. Beginning April 1, 2016 the minimum wage has been paid as a compulsory National Living Wage for workers over 25 years. This is being phased between 2016 and 2020 and is set to a level significantly higher than the previous minimum wage rate. By 2020 it is expected to have risen to at least Ã, Â £ 9 per hour and represents a full yearly payout equal to 60% of the average income in the UK. The National Living Wage is still lower than the Wage Life value calculated by the Living Wages Foundation. Some organizations voluntarily pay a decent wage for their staff, at a level somewhat higher than the legal level. Starting September 2014 all NHS Wales staff have been paid a minimum of "living wage" as recommended by the Living Wage Commission. Approximately 2,400 employees received an initial salary increase up to Ã, Â £ 470 above the interest rate change for the entire UK.
United States
In the United States, the state of Maryland and some municipalities and local governments have enacted procedures that set a minimum wage higher than the federal minimum which requires all work to meet living wages for the region. This usually works out to be $ 3 to $ 7 above the federal minimum wage. However, San Francisco, California and Santa Fe, New Mexico in particular have passed a very broad living wage bill. US cities with decent wage laws include Santa Fe and Albuquerque in New Mexico; San Francisco, California; and Washington, D.C. The city of Chicago, Illinois also issued a living wage regulation in 2006, but was vetoed by Mayor Richard M. Daley. The law of decent wages usually includes only businesses that receive state aid or have contracts with the government.
This effort began in 1994 when an alliance between trade unions and religious leaders in Baltimore launched a successful campaign that required municipal service contractors to pay decent wages. After these efforts, community supporters have won similar ordinances in cities like Boston, Los Angeles, San Francisco, and St. Louis. In 2007, there were at least 140 payroll procedures living in cities across the United States and over 100 wage campaigns taking place in cities, counties, states, and campuses. By 2014, the Wisconsin Service Employees International Union is working with public officials against legislation to wipe out local living wages. According to US Department of Labor data, Wisconsin Jobs Now - a non-profit organization that combat inequality through higher wages - has received at least $ 2.5 million from SEIU organizations from 2011 to 2013.
Despite this recent procedure, a number of studies have attempted to measure the impact of this policy on wages and employment. Researchers have difficulty measuring the impact of this policy because it is difficult to isolate the control group for comparison. An important study defines the control group as part of cities that seek to pass the living wage law but to no avail. This comparison shows that living wages raise the average wage rate in cities, however, reducing the probability of employment for individuals in the lower percentile of wage distribution.
Impact
Research shows that minimum wage laws and living wage legislation impact poverty differently: evidence shows that living wage legislation reduces poverty. Parties affected by minimum wage laws and different wage laws due to living wage laws generally apply to more limited population sectors. It is estimated that workers eligible for current wage legislation are between 1-2% of the lowest wage distribution quartiles. One must consider that the impact of a living wage law depends heavily on the extent to which these rules are enforced.
Neumark and Adams, in their paper, "Does the ordinance of living wage reduce urban poverty?", States: "There is evidence that modest living wages reduce the level of poverty in the locations where these ordinances are enforced, there is no evidence that the country's minimum wage laws do so. "
A study conducted in Hamilton, Canada by Zeng and Honig showed that living wage workers have higher affective commitment and lower turnover intentions. Workers pay living wages are more likely to support the organizations they work in in various ways including: "protecting the organization's public image, helping peer solving problems, improving their skills and techniques, advising or suggesting to the management team, and caring about the organization." The authors interpret these findings through the theory of social exchange, which shows the mutual obligations felt by superiors and employees towards each other when employees feel they are given favorable treatment.
The minimum national minimum wage currently in the United States, does not support decent wages for employees. Due to the fact that they are paid low, dependence on federal and state aid increases. It is estimated that if there are savings of about 18 billion dollars in federal assistance if the minimum wage is raised to 12 dollars per hour. Some other benefits for employees will increase self-esteem and job satisfaction, which will also trickle down to the children of the workers. These children will see a better social environment and may be more successful in school because of this support. With wage increases, employees will also have an increased purchasing power that will help stimulate the economy and create more jobs.
Estimated living wage
In 2003, there were 122 payroll procedures living in American cities and an additional 75 were being discussed. Article 23 of the Universal Declaration of Human Rights of the United Nations declares that "Every worker is entitled to a just and favorable remuneration which ensures for himself and for his family an existence worthy of human dignity."
In addition to legislative action, many companies have adopted a code of voluntary behavior. The Sullivan Principles in South Africa are examples of a code of voluntary behavior that states that companies should compensate workers to at least cover their basic needs.
In the table below, cross-national comparable living wages are estimated for twelve countries and reported in local currency and purchasing power parity (PPP). Estimates of living wages for 2000 range from US $ 1.7 PPP per hour, in low-income samples, to about US $ 11.6 PPP per hour, in high-income instances.
Eligible wage movements
Lifestyle Foundation
The Living Wage Campaign in Britain originated in London, where it was launched in 2001 by members of the London Citizens community organization (now Citizens UK). It was involved in a series of Living Wage campaigns and in 2005, the Greater London Authority established the Living Wage Unit to calculate the Living Wage of London, even though the authorities had no power to enforce it. The London Living Wage was developed in 2008 when Trust for London grants more than Ã, Â £ 1 million for campaigns, research and employer accreditation schemes. The Wages of Life campaign then grew into a national movement with local campaigns across the UK. The Joseph Rowntree Foundation is funding the Center for Research in Social Policy (CRSP) at Loughborough University to calculate the UK Minimum Standards of Income (MIS) figures, on average across the UK independent of the higher cost of living in London.
In 2011 CRSP used SIM as the basis for developing a standard model to establish UK Living Wage outside London. Citizens UK, a national community organizing organization developed from Citizens of London, launched the Living Wage Foundation and Living Wage Grants. Since 2011, Yayasan Upah Hidup has accredited more than 1,800 employers who pay the proposed wage. Living wages in London are calculated by GLA Economics and CRSP calculate Living Wages outside London. The recommended rates for 2015 are Ã, £ 9.40 for London and Ã, £ 8.25 for the rest of England. This rate is updated annually in November. In January 2016 the Wages of Life Foundation established a new Wage Life Commission to oversee the calculation of the Living Wage rate in the UK.
In 2012, research on the costs and benefits of living wages in London is funded by Trust for London and implemented by Queen Mary University of London. Further research is published in 2014 in a number of reports on the potential impact of raising the national minimum wage under English law to the same level as the Living Wage Foundation's living wage recommendations. These include two reports funded by the Trust for London and implemented by the Institute for Public Policy Research (IPPR) and Foundation Resolutions: "Beyond the Bottom Line" and "How Much Does A Living Wage?" In addition, Landman Economics publishes "The Economic Impact of Extending a Living Wage to All Employees in the UK".
A 2014 report by the Living Wage Commission, chaired by Doctor John Sentamu, the Archbishop of York, recommends that the British government should pay to its own workers a "living wage", but it must be voluntary to the private sector. Data published in late 2014 by the New Trust and Policy Society for London found that 20% of employees in London are paid below the living wage recommended by the Life Wage Foundation between 2011 and 2013. The proportion of people paying less than this level is highest in Newham (37%) and Brent (32%). A study by the Office of National Statistics in 2014 shows that at that time the proportion of employment outside London that paid less than living wage was 23%. The equivalent figure in London is 19%. The study by Loughborough University, commissioned by Trust for London, shows 4 out of 10 Londoners are not able to get a decent standard of living - it is one that enables them to meet their basic needs and participate in society to a minimum. This is significantly higher than 30% that falls below the standard in the UK as a whole. It represents 3.5 million Londoners, rising 400,000 since 2010/11. The study highlights the need to increase revenues through better wages, especially, London Living Wage, to ensure more Londoners reach a decent standard of living.
Ed Miliband, leader of the Labor Party in opposition from 2010 to 2015, supports the appropriate wage and tax cuts proposed for employers who adopt it. The Labor Party has implemented decent wages in some of its local councils, such as on the boards of Birmingham and Cardiff. The Green Party also supports the introduction of decent wages, believing that the national minimum wage should be 60% of net national average income. Sinn FÃÆ'Ã… © in also supports the introduction of decent wages for Northern Ireland. Other supporters include newspaper columnist The Guardian, Polly Toynbee, Church Action on Poverty, Scottish Low Salary Unit, and Bloomsbury Battle!
New Zealand Aotearoa Wage Movement
In New Zealand a new social movement, the New Zealand Aotearoa Wage Movement, was formed in April 2013. It emerged from a loose network that launched the Living Wage Campaign in May 2012. By 2015 there are more than 50 faith organizations, trade unions and community members and in the year 2017 there are 90.
In February 2013, independent research by the Center for Family Policy Social Policy identified New Zealand's living wage of $ 18.40 per hour. This increases in 2014 to $ 18.80 per hour and in 2017 to $ 20.20 per hour.
On July 1, 2014, the first accredited New Zealand Living Wage Entrepreneur was announced. Twenty businesses for 2014-15 include food manufacturing, social service agencies, community organizations, unions, and restaurants. This number has now increased to 90 businesses, including the first company, Vector. Wellington City Council has committed to becoming an Accredited Wage Entrepreneur and five other local government bodies, including the Auckland Board, have taken their first steps to implement Living Wages. In the September 2017 election, the three parties that formed the Government have also committed to Living Wages for employees and contract workers for core public services.
Asian Floor Income
Launched in 2009, Asia Floor Wage is a loose labor coalition and other groups seeking to apply Living Wages across Asia, with a particular focus on textile manufacturing. There are associate members in Bangladesh, Cambodia, Hong Kong S.A.R., India, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand and Turkey as well as supporters in Europe and North America. This campaign targets multinational entrepreneurs who do not pay their growing world workers with decent wages.
Wage campaign eligible in the United States
New York City
The proposed legislation will inform taxpayers about where their investment dollars are going and will detain developers for more stringent employment standards. The proposed action will require developers who receive subsidies funded by large taxpayers to pay the minimum wage for workers. The law is designed to improve the quality of life and stimulate the local economy. In particular the proposed action will ensure that workers in major development projects will receive a wage of at least $ 10.00 per hour. The living wage will be indexed so that it continues to rise with the cost of living. Furthermore, the law will require employees who do not receive health insurance from their employers will receive an additional $ 1.50 per hour to subsidize their health care costs. Workers employed in subsidized development will also be entitled to life-time security guarantees.
Many municipal officials oppose eligible wage requirements because they believe they are limiting the business climate making cities less attractive to potential industries. Logistically, the city must hire employees to organize the ordinances. Conversely, law supporters have admitted that when wages are insufficient, low-paid workers are often forced to rely on public aid in the form of food stamps or Medicaid.
James Parrott of the Fiscal Policy Institute testified at a meeting of the City Council of New York in May 2011 that real wages for low-wage workers in the city have dropped substantially over the past 20 years, despite the dramatic increase in average education levels. A report by the Fiscal Policy Institute shows that business tax subsidies have grown two and a half times faster than the entire New York City tax collection and ask why these public resources are invested in poverty-level jobs. Mr. Parrott testified that income inequality in New York City exceeded that of other large cities, with the highest income of 1 percent receiving 44 percent of all revenues.
Harvard University
Harvard University students began organizing a campaign to combat the low living wage issue for Harvard workers that began in 1998. After a failed attempt to meet Harvard president Neil Rudenstine, the Wage Campaign began taking action. As the movement gained momentum, the Living Wage Camp held meetings with the support of students, alumni, faculty, staff, community members and organizations. Most importantly, the rally gained support from Harvard workers, reinforcing the campaign demands for higher wages. After various steps tried to provoke change in government circles, the movement took the most drastic step. About fifty students occupied the president's office and university administrator in 2001 to sit for three weeks. When students are in the president's office, supporters will sleep outside the building to show solidarity. At the end of the living room worker, the dining room may approve a contract to raise the salary of the worker. After the sit-in, the Wage Campaign sparked unions, contracts and workers to start negotiations for a fair wage.
Miami University
The University of Miami Wage Campaign began after it was learned that Miami University's wages are 18-19% below market value. In 2003, members of the University of Miami Workers' Coalition began to line up to get university staff salaries. After failed negotiations between the university and the American Federation of State and City Employees (AFSCME), the workers broke down. For two weeks, protest workers and students created a tent city as a way of showing support for strikers. Eventually more students, lecturers and community members came out to show support. Even the union president at that time also went on hunger strike as another way to protest wages. By the end of 2003 the union can make a deal with the university for a gradual increase of about 10.25%. There is still an ongoing push for Miami University to adopt a decent wage policy.
Johns Hopkins University
The Johns Hopkins University Student Action Committee (SLAC) took action by sitting down until the government listened to their demands. In 1999, after a petition with thousands of signatures, Johns Hopkins University president William R. Brody raised hourly wages (to only $ 7.75) but excluded health benefits or wages would adjust inflation. Sit-ins began in early 2000 to meet the demands of university students to adopt decent wages. A few weeks later, the settlement was made with administration. SLAC now only ensures that wage policy is feasible to apply.
Swarthmore College
Beginning in 2000, Wage Life and Democracy Campaign Swarthmore College began as a small meeting between students and staff to voice concerns about their wages. Over the next two years, the Living Wage and Democracy Campaign voiced concerns to the administration of the university. In response in 2002, wages were raised from $ 6.66 to $ 9 per hour. While the campaigners are happy with this first result, they believe the campus still has a long way to go. The college president, Al Bloom created the Ad Hoc Committee to help study what is meant by living wages and release a committee report. In the report it is recommended hourly wages, child care benefits, health insurance for employees and families.
University of Virginia
The Living Wage Campaign at the University of Virginia in Charlottesville, Virginia, consisting of students, faculty, and community members, began in 1995 during the reign of President John Casteen and continued under President Teresa Sullivan. The campaign has demanded that the university raise wages to meet the basic cost of living standards in the Charlottesville area, calculated by the nonpartisan Economic Policy Institute.
In 2000, the campaign successfully persuaded university administrators to raise wages from $ 6.10 to $ 8.19; however, this wage applies only to direct employees, not contract workers. In the spring of 2006, the campaign gained national media attention when 17 students took a sit-in at the university president's office in Madison Hall. A professor was arrested on the first day of the rally. 17 students were arrested after 4 days of protest and then released in court.
Starting in 2010, the campaign has held a series of rallies and other events to draw attention to the need for decent wages for UVA employees. They have also met with members of the administration several times, including with the president. In making arguments for decent wages, the campaign claims that continuing to pay low wages is inconsistent with the values ​​of the University "Community Trust." They have also noted that a joint notebook written by President of the Sullivan in 2011, The Social Organization of Work , states that, "Being paid a decent wage for a person's job is a necessary condition for self-actualization. " After a rally and meeting in the spring of 2011, President Sullivan posted "Commitment to the Lowest Paid Employee" on the website of the President of the University including a letter devoted to the Campaign.
On February 8, 2012, the Campaign released a series of demands to University administrators who called for a decent wage policy at the University. This demand includes the requirement that the University "explicitly address" the issue on 17 February. Although University President Teresa Sullivan responded to requests in bulk emails sent to the University community shortly before the end of the day on February 17, the Campaign criticized his response as "deliberately misleading" and vowed to take action.
On February 18, the campaign announced that 12 students would begin a hunger strike to publicize the fate of low-paid workers.
Criticism
Critics of the implementation of living wage laws have taken a form similar to those that are contrary to minimum wages. Economically, both can be analyzed as floor price of labor. The price floor, if above equilibrium price and thus effective, always leads to a "surplus". In the context of the labor market, this means that unemployment rises because the number of entrepreneurs who are willing to hire people with "decent wages" under the amount they will rent at the equilibrium price. Thus, setting a minimum wage with decent wages has been criticized for the possibility of destroying jobs. For more information, see price floor.
Critics have warned not only an increase in unemployment but also rising prices and a lack of entry level jobs due to 'labor substitution effect'. Voluntary wages from living wages are criticized as unlikely because other competitive advantages of other businesses in the same market will have more than one that adopts a decent wage. The economic argument is that, ceteris paribus (all other things are equal), firms that pay their workers more than is required by the market will not be able to compete with those who pay according to market prices. See competitive advantage for more information. This criticism ignores the possible benefits derived from higher wages which include: higher efficiency and yield due to reduced absenteeism and reduced recruitment, training and supervision costs.
Another problem that arises is that living wages may be a less effective anti-poverty tool than any other action. The authors point to living wages as a limited means of addressing the problem of increasing economic inequality, increasing long-term wage employment, and declining unions and legal protection for workers. Because living wage practices seek to address decent wage issues, defined by some of their supporters as wage families, rather than as individual wages, many beneficiaries may already exist in the family which makes far more than is necessary to provide an adequate standard of living. According to a survey of labor economists by the Employment Policies Institute in 2000, only 31% perceived decent wage as a very effective anti-poverty tool, while 98% viewed policies like the US earning income tax credit and general welfare grants in the same tone. On the other hand, according to Zagros Madjd-Sadjadi, an economist with the Labor Statistics and Labor Section of California, living wages can be seen publicly as better than other methods because it reinforces the "work ethic" and ensures that something of value is generated , unlike welfare, which is often believed to be a "gift" of pure cash from public cash. "
The concept of living wage by definition as a family wage has been criticized by some for emphasizing the role of men as breadwinners. However, the most profitable jobs of decent wages, including cleaning, catering, childcare, care for the elderly and the sick, and regular office work, are disproportionately affected by low wages and disproportionate workers by women.
See also
- Distributism
- Minimum revenue is guaranteed
- Labor market
- Maximum wage
- Minimum wage
- Positive rights
- Travertous work
- Supply and demand
- Trade Boards Act 1909
- Work poor
Note
References
- S Webb and B Webb, Industrial Democracy (Longmans 1902)
- Ryan, John A. Living Wages Macmillan, New York 1906 OCLC 39046728
- Gertner, Jon, "What is the Living Wage?", The New York Times, January 15, 2006
- Madjd-Sadjadi, Zagros, Living Wages: Issues and Impacts Division of Labor Statistics and Research, California Department of Industrial Relations, San Francisco, California 2001
- Sklar, Holly; Mykyta, Laryssa; Wefald, Susan, "Raise the Floor: Wages and Policies that Work for Us All", 2002, South End Press. [2] ISBN 0-89608-683-6
- Nadeem, Shehzad, "Movement of Living Wages and Morality Economics," Research in Social Movements, Conflict, and Change 28: 137-167 (2008)
- Miller, Doug (February 5, 2013). Toward Sustainable Labor Costs in UK Fashion Retailing . SSRN . University of Northumbria. doi: 10.2139/ssrn.2212100. SSRNÃ, 2212100 .
External links
- Rerum Novarum (About Labor Conditions) Pope Leo XIII (1891); the seminal work of modern Roman Catholic social thought overcomes the plight of industrial workers in the midst of the Industrial Revolution
- The Living Wage Calculator compares the minimum wage, decent wage, and poverty wage for New York City
- Living wage in Curlie (based on DMOZ)
- Measuring the Full Impact of the Minimum Wage and Living Law of Dollars & amp; Sense Magazine
- LaborFair Resources - Links to Fair Employment Practices
- Institute of Economic Policy - Living Wages
- Family Policy Budget Calculator Family Institute
- (London) page Living Unit
- Life Wage Calculator
- ACORN Living Wage Campaign
- The Universal Living Wage Campaign
- [3] -Link to New York's Living Campaign
- Wage Campaign at the University of Virginia
- Doug Miller of Northumbria University, UK proposes to use IE techniques to define Living Wage
- Living Wages, Scarcity for US Fast Food Workers, Presented in Denmark. The New York Times. October 27, 2014.
Source of the article : Wikipedia
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