Let’s talk about wages. We all get up every morning. We all try to be productive and maybe even
earn some money at it. There comes a
time when you have worked for a number of years and noticed that prices of
everything you buy have risen but yet you are still making the same wage. When is the
time to complain, to revolt, to
ask for more money? It is an age old
dilemma That has gone on throughout history . There has
always been a debate over who deserves a higher wage. Should you get more pay for simply holding on
to you a job for a long time or should wages be determined by how many skills
you have?
100 years ago in 1914 there was
a very
important change for American labor.
In January of 1914 Henry Ford and his car company was the most important
new story in the Detroit journal which was a very important newspaper at the
time. The headline read,” Henry Ford
gives $10,000,000 in 1914 profits to his employees. “ I don’t remember hearing
anything like that in my lifetime.. Yes,
on January 5 he decided to share profits and double the wages of all his
employees making his cars. Their
previous wages were $2.34 a day that was now increased to $5.00 a day. Imagine if your employer doubled your wage today?
Even the boy who swept the floors
got that much money. Many other business
owners were angry at Ford for shaking things up in
the wage department of the business world.
But Ford had his reasons for doubling the pay of his employees. He felt that
higher wages would ensure employ loyalty to his company. He also wanted his employees to be able to
afford to buy one of his own cars for
themselves. Within days of that
very public announcement, thousands of people gathered in front of his
auto factories looking for jobs. Suddenly Henry Ford was the best boss who had
the best jobs and made the best cars for everyone to afford.
The next big headline in the
financial papers came a year later when they reported that Ford profits rose to
$60,000,000 in one year. The chief
owners share of the earnings was estimated at 34 million dollars. The output was an outstanding 500,000
cars. The result proved that profit
sharing plans is good sound business.
How did America forget that this happened? It
seemed to have worked out well
for every one. Even though the voluntary
act of doubling wages was made by just one company, it helped legitimate ideas
of the still controversial notion of a uniform minimum wage. Yes there was not any minimum wage salary at
that time.
Finally in 1938 Congress approved
the Fair Labor Standards Act establishing the first nationwide minimum wage of
25¢ per hour. That seems like nothing
for 1938 so there has been increases throughout the years.
Our minimum wage has recently
increased from $ 7. 25 per hour to seven dollars and 40¢ per hour. According to labor advocates that still
falls short of the rate of inflation. Yes people cannot live on $7.40 per hour
these days. Business groups
argue that increasing the rate
even more would discourage hiring more
employees yet 69% of Americans want the wage base to be raised
higher. Yes Henry Ford has been dead for a long time and I don’t think
we will find another employer as generous as he was.
According to recent polls, many
Americans want the wages to be raised to nine dollars per hour even for the guy
who sweeps the floor. As of January 1
2014 many minimum wage laws have voluntarily increased in many states. 21 states have enacted a higher minimum wage
of their own. Washington State tops the
list at $9.32 per hour. Do the math and
that adds up to $74.56 per 8 hour shift.
That’s almost 15 times Henry Ford’s $5.00 a day. God bless America. I hope we can find new ways to make a
decent days pay and afford to feed
our families and pay for our homes. I don’t think our wish is greedy.
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