Rule303
11-26-2001, 03:45 PM
During my last visit to USA, I think the minimum wage was $5.25/hour.
I read that the US minimum wage was introduced post-civil war to ensure that employers in the south would not create a monopoly on industries. The reasoning was that a factory in the south could not undercut the prices of a manufactured item in the north by reducing the cost of manufacture through lower wages. This apparently caused wide spread unemployment at the time.
A similar contrast is apparent when large name brand companies are manufacturing their goods in Mexico and some third world countries at abysmally low wages. Not wishing to draw a law suit againt myself, but there are some major sports brands that are manufactured in these countries then marketed in major countries like Germany, USA, England and Australia. In a television documentary, it showed a 16 year old girl who worked in "quality control' in one of these factories. She examined around 1500 - 2000 shirts during her 12 - 14 hour shift for which she received $4.50 US a day.This creates very little employment for people in those economically better countries.
But is there a solution?
But within the local employment industry, Australia developed the "award wage' sytem. This is where the wage/salary applied to the job is based on the duties required. A miner working in a dangerous environment receives very high salary. A person sweeping floors receives a low salary. Australian does not have a generalised minimum wage, but rather one that suits the place of employment. Most Australians are paid above the award wage. This however, creates a higher priced product. That in return, makes the Australian product less competitive with the same product made in a third world country.
But again, are there any answers to this situation.?
I read that the US minimum wage was introduced post-civil war to ensure that employers in the south would not create a monopoly on industries. The reasoning was that a factory in the south could not undercut the prices of a manufactured item in the north by reducing the cost of manufacture through lower wages. This apparently caused wide spread unemployment at the time.
A similar contrast is apparent when large name brand companies are manufacturing their goods in Mexico and some third world countries at abysmally low wages. Not wishing to draw a law suit againt myself, but there are some major sports brands that are manufactured in these countries then marketed in major countries like Germany, USA, England and Australia. In a television documentary, it showed a 16 year old girl who worked in "quality control' in one of these factories. She examined around 1500 - 2000 shirts during her 12 - 14 hour shift for which she received $4.50 US a day.This creates very little employment for people in those economically better countries.
But is there a solution?
But within the local employment industry, Australia developed the "award wage' sytem. This is where the wage/salary applied to the job is based on the duties required. A miner working in a dangerous environment receives very high salary. A person sweeping floors receives a low salary. Australian does not have a generalised minimum wage, but rather one that suits the place of employment. Most Australians are paid above the award wage. This however, creates a higher priced product. That in return, makes the Australian product less competitive with the same product made in a third world country.
But again, are there any answers to this situation.?