Focus on Living Wage

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Why is the living wage so high, but the minimum wage so low?

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A resource to raise awareness of wage issues in the United States and around the world

Transcript of Focus on Living Wage

Page 1: Focus on Living Wage

Why is the living wage so high, but the

minimum wage so low?

Page 2: Focus on Living Wage

How are we supposed to provide for our families if

the minimum wage is less than the living wage?

“No business which depends

for existence on paying less

than living wages to its workers

has any right to continue in this

country.”

-Franklin D. Roosevelt

Some families with one source of income find

it difficult to provide basic needs like food,

water, and shelter.

What is the issue?

The problem so many people around the

world are facing is that they cannot provide

their family with basic needs because they

are not earning enough money at work to

meet the living wage. The living wage is a

wage that is high enough to maintain a

normal standard of living. Regardless of

whether someone is working full-time at 40

hours per week or full-time at 60 hours per

week, some people still find it hard to get

by with basic needs. The culprit behind

this issue is a lack of or low minimum wage.

In order to increase profit, some

corporations decrease the pay of the

workers. That is why so many companies,

such as Wal-Mart, outsource jobs to foreign

countries because some countries do not

have laws protecting the country’s work

force.

DID YOU KNOW?

Though the earnings differential between college and high school graduates varies over

time, college graduates, on average, earn more than high school graduates. According to

the Census Bureau, over an adult's working life, high school graduates earn an average of

$1.2 million; associate's degree holders earn about $1.6 million; and bachelor's degree

holders earn about $2.1 million.

Causes

Lack of Educational Opportunities

Minimum Wage Is Not As High As

the Living Wage

Excessively High Expenses

Rapidly Increasing Inflation

Job Salaries Not Increasing At the

Same Rate As Inflation

Hyperinflation

High Unemployment Rates

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The only way not to think

about money is to have a

great deal of it. Edith

Wharton (1862 - 1937)

Over 140 living wage ordinances are in place around the United States, and the United Kingdom is

actively working towards one.

A Family of Four in Vermont needs to make $19.82 in order to be above Living Wage. (University

of Vermont)

These are of the states that

have Minimum Wages higher

than the Federal Mandate:

Montana, Arizona, Colorado,

Michigan, Ohio, Rhode Island,

Maine, New Mexico,

Alaska,

Massachusetts, Vermont,

Connecticut, Illinois,

Nevada, Oregon Washington

D.C., & Washington

State.

A Living Wage is NOT the Minimum Wage, but it is what is required to be able to make a

living for the month. A lot of people are working for Minimum wage, and they are not

making it to the next month. SO it is not about what we are paying to be fair, it is about

what we are paying so that families do not have to choose between utilities and groceries,

water and heat, one necessity for another.

DID YOU KNOW?

What Is a

Living

Wage?

Page 4: Focus on Living Wage

Country Information: Location: Eastern Asia, Between North Korea and Vietnam Capital: Beijing Population: Over 1.3 billion Size: 3,696,000 square miles Language: Standard Mandarin Child Mortality Rate: 33 per 1,000 Life Expectancy: 73 years old Religions: Taoism and Buddhism Access to Clean Water: more than 300 million rural residents lacks clean water Literacy Rate: 85.2% Doctor Patient Ratio: 1.51 Population Living on Less $2/Day: 47% or Approx. 611,000,000 people

Why do a lot of countries, which get highly regarded as a top

country, always have major problems within their layers of

success?

China suffered through clashes with European powers in the

1800s. Then, in 1911, Chinese revolutionaries overthrew the last

dynasty. The country suffered internal strife for nearly four

decades due to warlords, civil war and Japanese invasion

CURRENT POPULATION OF CHINA:

1.3 billion

POPULATION IF CHINA HAD NOT INSTITUTED ONE-CHILD POLICY IN 1978:

1.5 billion

Source: Government of China

China's explosive growth has come at a price. The economic

gains have not been shared equally. Millions have become

richer. But hundreds of millions have not. More than 60 per

cent of the population still toils in agriculture; the country's

"economic miracle" has yet to make an appearance in much

of the country. Corruption also remains well entrenched.

Did you know? China’s minimum wage is lower than 32 African countries. Their annual wage is less than 15% of the world average. The lowest average income in china is $896 US dollars.

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Do you know what China’s living wage is like now?

The book (above) Chinese Girl in the Ghetto.

It tells a story about a young Chinese girl

trying to make it in the United States after

moving from China to California.

The parents work in menial jobs, at first

earning less than minimum wage. Their two

children wear clothing purchased from

Goodwill or handed down from their

relatives. The family uses second-hand

furniture and at first, each of the children

sleeps on half of a bed—one on the

mattress and the other on the box springs.

-Ying Ma

Solutions to China’s living wage:

taking up respective

responsibilities and

obligations while boosting

collaboration

mobilizing resources for the

elimination of poverty

foster a favorable

international environment

for poverty reduction

Current Facts about China’s Wages:

The average wage in urban areas in 2006

was 1,750 yuan a month, four times higher

than the figure for 1995.

In 2006, the average wage of those

employed in primary industries was only

786 yuan.

In 2006, the annual per capita disposable

income of urban households was 11,759

yuan compared with only 3,587 yuan in

rural households.

According to a National Bureau of Statistics

survey: “The average monthly wage of

migrant workers [in the Pearl River Delta] is

only 600-700 yuan. Based on the local cost

of living, such an income is only enough to

buy four bowls of noodles a day.”

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Case Study

In the town of Des Moines, Iowa,

Glenwood residents find themselves with

one of the highest population of disabled

American in the country. Employers of

some of the disabled take advantage of

their situation by paying less than

subminimum wage. According to the

Iowa Department of Human Services,

which runs the Woodward and Glenwood

centers, 314 residents of the two

facilities are paid less than the Iowa

minimum wage of $7.25 an hour.

At Glenwood, there are 173

residents being paid subminimum wages,

and the workers collect an average of

$3.31 an hour. One resident is paid an

average of 11 cents an hour, and there

are 18 workers averaging less than 40

cents an hour. The disabled Glenwood

residents assist with food service,

custodial work, laundry, delivery

services and recycling.

What should the

government be doing?

Governments need to ensure that

fundamental rights, including the right of

freedom of association and collective

bargaining, can be effectively exercised

and that labor standards are upheld.

And governments urgently need to

ensure there are regular increases in the

minimum wage and ensure that the

minimum wage represents a living wage.

As of July 24, 2009, the federal

minimum wage in the United

States is $7.25 per hour. Some

states and municipalities have

set minimum wages higher than

the federal level, with the

highest state minimum wage

being $8.67 in Washington. This

usually works out to be $3 to $7

above the federal minimum

wage.

How does the high living wage affect you?

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How can anyone make a living when minimum wage is below

the living wage? Take a stand for universal living wage.

FOR MORE INFORMATION ON LIVING WAGE AND HOW YOU CAN HELP THE

CAUSE, VISIT THE FOLLOWING WEBSITES. MAKE YOUR VOICE FOR UNIVERSAL

LIVING WAGE HEARD TODAY!

http://en.wikipedia.org/wiki/Living_wage

http://www.livingwage.geog.psu.edu/

http://www.metronews.ca/ottawa/local/article/830034--poverty-group-urges-action-on-living-wage

http://www.povertyontrial.org

http://universallivingwage.org/

http://www.yaledailynews.com/news/2011/apr/14/living-wage-moves-ahead/