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Issues
of Concern
Living
Wage
A
living wage is a level of compensation that meets the basic needs of an
employee and his/her family. Living wage campaigns seek to eliminate poverty-level
wages for hard-working families and to restore the dignity of workers
and their labor.
Frequently, businesses seek to reduce costs in order to make a greater
profit. Because labor costs (wages and fringe benefits) usually comprise
the greatest expense for companies, employers try to reduce their costs
in this area. This leaves many low-wage workers, who provide fundamental
services, with earnings that can’t support their families and without
crucial benefits like health insurance.
Some in the business community argue that increasing wages and benefits
to the lowest wage earners will reduce competitiveness in the global economy.
This argument is fallacious because most low-wage occupations fall in
the service sector that generally is free from foreign competition. The
USA does not import housekeeping, janitorial, and fast food labor the
way it imports cheap clothing, toys and electronics.
We use the term "living wage " as opposed to "minimum wage " because the
present federal minimum wage of $5.15/ hour is not adequate to meet basic
needs of workers. A $5.15 minimum wage, $10,712 a year, is nearly $3,000
below the poverty level for a family of three ($13,290). Poverty has nearly
doubled among full-time, year-round workers since the late 1970 's, due
in part to the declining value of the minimum wage. A full-time minimum
wage earner makes only 55 percent of the federal poverty threshold for
a family of four.
Are minimum wage earners mostly teen-agers? No. Most minimum wage workers
are adults: those at checkout counters, working as aides in childcare
or healthcare who are denied employer health benefits, paid sick days,
or paid vacation.
Some steps are being taken to reach the goal of providing workers
with a living wage.
• The Fair Minimum Wage Act of 2003 (S. 20} was introduced on January
7 by Senator Tom Daschle (D-lowa) with 34 co-sponsors including Wisconsin
's Senator Russ Feingold. To learn more about this legislation visit
the support statement composed by religious leaders at www.nicwj.org.
• Cities and counties are passing Living Wage laws that require
companies doing business with the local government to pay a living wage.
This reduces inequities between government employees and those working
in the private sector.
• The Quality Care Through Quality Jobs Act offers states an opportunity
to help direct-care workers and improve quality care for the chronically
ill, elderly, or those living with disabilities. Under the bill, state
demonstration projects would include grants to encourage wage and benefit
innovations and effective provider practices, allow states to use federal
funds to lest these systematic changes and allow consumers, providers
and workers to jointly define and conduct initiatives. For more information
on the bill, visit www.nicwj.org.
See if you can make ends meet on minimum wage with a new interactive wage
and household budget calculator on the Web at raisethefloor.org.
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