Two
of America’s highest cost-of-living states this month took
legislative action to raise the minimum wage, eventually to $15 an
hour, and there are businesses across New York state that feel it is
the right thing to do.
Workers’
efforts to raise the minimum wage has been a years-long effort, but
the past two years have seen more successful action on that score
than in previous decades. And, big business doesn’t like it.
Lining up to criticize a raise that will pay the bills for low-wage
workers were such as the U.S. Chamber of Commerce, the National
Association of Manufacturers, the National Federation of Independent
Business, the American Farm Bureau Federation, and many others.
Wages,
in general, have been stagnant for many years and the minimum wage
has lost most of its value, to the extent that many low-wage workers
need two jobs to pay the family bills. The disparity in wealth and
income in the country has been growing steadily for decades, until
now, that disparity has been compared to that of a century ago, when
the Robber Barons ruled and had their own armies of “police”
and “detectives” to ensure that workers remained a
pliable lot.
Economists
and trade unionists have recalled the conflict that resulted from the
disparity, not only in wealth and income, but also in economic and
political power at the turn of the 20th Century. The
citizen-workers had little power on the job and that translated into
a lack of power elsewhere in their lives. Conflict was predictable
under those circumstances. But, they were the ones who suffered
most, as the workers are suffering now, with little light coming from
the far end of the economic-political-social tunnel.
Economists,
social critics and some union leaders long have said that the rise of
the union movement in the last century was the reason for strong and
healthy working and middle classes, which made for a healthy economy
and good social outcomes. Despite this common sense view of the
nation, there has been the relentless war against workers and their
unions for a half-century and from that the great disparity in wealth
and income has come.
The
American economy and its social structure are in crisis and everyone
in power seems to be unable to see it. Those who are living through
it are more than aware of it. Millions of them are desperate. The
billionaires and their little cousins, the multi-millionaires, and
Corporate America have kept their heads down and kept up the drumbeat
of their own decline: lower taxes for the wealthy and corporations,
move jobs and industry to high-profit (other) countries, keep the
wages low (it gives those workers “incentive” to work
harder), deregulate everything from campaign financing and
environmental laws, keep the prison population high, and get rid of
small farms in favor of agribusiness corporations.
All
is not lost, however, because some business owners and corporations
have seen the light, in New York State, at least. When the increase
in the minimum wage in the state went into effect at the beginning of
this month, members of Business for a Fair Minimum Wage (BFMW) hailed
the increase to $15 an hour (phased in over several years), saying it
“is good for business and for the economy.” Apparently,
they didn’t get the memo from the big boys in commerce and
industry.
Indeed,
one of the biggest members of BFMW, The Greater New York Chamber of
Commerce, seems to be in direct opposition to its parent
organization, the U.S. Chamber of Commerce, which constantly calls
for depressing living standards of ordinary workers. The Greater
New York Chamber represents about 30,000 businesses and seems to have
finally seen the light. Others in the organization include Ben and
Jerry’s, the Amalgamated Bank, Ithacamade, Spectronics
Corporation, and the Northeast Organic Farming Association of New
York. All of them and many more see the justice and necessity of
raising the minimum wage to one at least near a livable wage. In New
York, the minimum will rise from the current $9 an hour, to $15 over
several years.
The
CEO of the biggest fast food chain in the nation, Subway, said he had
no problem in raising the minimum wage. Frank DeLuca, who founded
the company four decades ago, told CNBC nearly a year ago that a
raise in the wage was warranted. “I’m not concerned,”
he said. When he started his business, the minimum wage was $1.25
an hour and, if it had kept up with inflation, it would by $9.38 an
hour in 2016 dollars. Before the past few years, when thousands of
low wage workers and their supporters filled the streets of major
cities, most fast food chains paid the minimum wage, which had a
tendency to put a damper on wages throughout the economy, including
the middle income workers.
One
of the more interesting companies that supports a raise is Ben and
Jerry’s, the ice cream company in which workers saw their
minimum raised to $17.09 an hour on April 1, not four or five years
from now, the period in which the $15 wage will be reached in both
New York and California. “Ben & Jerry’s has paid a
living wage for more than 20 years…” said Jeff
Furman, Chairman of the Board of Directors, Ben & Jerry’s
Ice Cream and an Ithaca resident. “This
principle spares our employees the struggle of trying to make it on
wages that don’t even cover basic expenses. In return, our
company is spared the cost of high turnover and is boosted by greater
worker morale and commitment. New York State made a significant step
to increase wages over time and we should applaud those who made this
happen. However, we need to continue to move aggressively towards a
living wage principle while helping our small business community.”
Then,
there is the Amalgamated Bank, one of the few, if not only, bank that
is union-owned, which is part of BFMW. “Earning a living wage
is not about politics,” said Keith
Mestrich, President and CEO of the bank. “It’s
about giving hardworking people a chance at a better life and
strengthening our economy. Thanks to Governor Cuomo’s
leadership, a living wage will be a reality. We commend the Governor,
Assembly Speaker and Senate Majority Leader on a plan that will bring
minimum wage to $15 an hour over the next few years, as this will
allow for businesses to adjust while also ensuring workers are given
the chance to succeed.”
This
is happening in New York, arguably the world’s financial center
and certainly one of the toughest cities in which to do business and,
when the group that represents 30,000 businesses in Greater New York
supports a $15 minimum, you can be sure that there is change afoot.
They are learning that, when everyone does well, everyone does well.
Perhaps that lesson will seep into the murky consciousness of the
wealthy and the powerful. They can rein in their rabid think tanks
a bit and tell them that the country is reaching a danger point,
beyond which the people will not be satisfied with two or three jobs
to put food on the table for their families and pay their other
bills.
The
Economic Policy Institute, in a report issued last year, showed that
a typical worker’s pay grew 10.2 percent over the past 40
years, compensation of the average CEO increased by 937 percent.
That’s where the money has gone, folks. It has gone to the 1
percent, which is buffered by, perhaps, another 9 percent of the
wealthiest, and that has left the remaining 90 percent with slim
pickings. It’s no wonder that parents do not have enough money
to take themselves or their children to a doctor, or buy a decent
house, put quality food on the table, or send their boys and girls to
college.
A
raise in the minimum wage is merely a start in the direction of
solving the extremely difficult task of shrinking the disparity in
wealth and income. That problem will not be solved easily, because
the rich will not give up their access to wealth easily. Their
wealth gives them power and that power is exercised against the
people who work for wages, and keeping wage workers securely at the
rock bottom of the economic ladder is what they use to maintain their
power. It’s a vicious circle, one that is hard to break out
of.
It
is true that many in the 1 percent and in Corporate America are
beginning to see the light and have embraced a move in the right
direction, and their politicians have fallen into line. But,
remember that none of this would have happened if it had not been for
the people who earn the minimum wage and their supporters, massing by
the thousands in the streets and demanding a raise. The next demand
should be for a union and a contract, with benefits and a pension.
That will be tougher than the raise, but it is a vital necessity for
the well being of all workers and for the nation’s economy.
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