This is Bill #3 Minimum Wage Alignment Act (Bill Increasing Minimum Wage to $22.00 Per Hour) (Bill Indexing the Minimum Wage to Inflation / As the Cost of Living Increases, the Minimum Wage will Increase Automatically) Legislation is currently being drafted.
Concerning a $22.00 per hour minimum wage tied to employee productivity, a Center for Economic and Policy Research Issue Brief located athttp://www.cepr.net/documents/publications/min-wage1-2012-03.pdf, states the following information:
“If the minimum wage had continued to move with average productivity after 1968, it would have reached $21.72 per hour in 2012.”
The year is currently 2018 and employee productivity has been rising since 2012...so where would the minimum wage be today in 2018 if it had risen with employee productivity, if it would have reached $21.72 per hour in 2012? Another thing demonstrated by the constant rise in employee productivity, is the large amounts of employee productivity gained by businesses, to the detriment of the employees concerning wages. It is clearly unfair for employees to make starvation wages, yet the businesses make billions of dollars, and CEO's are paid high salaries and bonuses.
The Economic Policy Institute at https://www.epi.org/productivity-pay-gap/, states the following information:
“from 1973 to 2016, net productivity rose 73.7 percent, while the hourly pay of typical workers essentially stagnated—increasing only 12.5 percent over 43 years (after adjusting for inflation). This means that although Americans are working more productively than ever, the fruits of their labors have primarily accrued to those at the top and to corporate profits, especially in recent years.”
The Economic Policy Institute at https://www.epi.org/productivity-pay-gap/, also states the following information:
“For future productivity gains to lead to robust wage growth and widely shared prosperity, we need to institute policies that reconnect pay and productivity, such as those in EPI’s Agenda to Raise America’s Pay. Without such policies, efforts to spur economic growth or increase productivity (the largest factor driving growth) will fail to lift typical workers’ wages.”
The words from the Center for Economic and Policy Research Issue Brief, and the Economic Policy Institute, show that employee productivity and wages can, and should be tied together. Employee productivity and salaries are tied together concerning corporations and their CEO’s, as one can easily see through the high salaries and bonuses CEO’s are paid by corporations, along with other benefits. If CEO’s of corporations are paid high salaries and bonuses based upon how well they do for the corporations…then the employees all the way down the ladder should also be paid high wages and bonuses based upon how well they do for the corporations. The CEO’s are compensated highly for their productivity, so it is only fair to compensate all employees highly for their productivity. The corporations could utilize a tiered system based upon seniority, job performance, and other fair factors the corporations may decide upon for employees, which should include CEO's…and there should be a living wage within the corporations that no employees should drop below. Profit sharing should be fair across the board, from the CEO's all the way down the ladder, as the corporations exist because corporations utilize poor and middle-class labor to produce the goods and provide the services…and the corporations sell those goods and services produced by poor and middle-class labor, to the same poor and middle-class who provide the labor to produce the goods and provide the services. Corporations would not exist if not for the poor and middle-class, and neither would CEO’s exist if not for the poor and middle class. If all employees of corporations quit, those corporations would cease to exist as a result, thereby eliminating the need for CEO's. Employees all the way down the ladder deserve to be respected by the corporations for whom they work, because the employees are supporting those corporations on both sides of the economic equation. They are spending money to buy goods and services from those corporations, which is the same money they earned from those corporations through their labor…so the money goes around and back into those corporations as profit that is utilized to pay high salaries and bonuses for CEO’s…yet the rank and file employees receive low wages, and no benefits in many instances. There are poor and middle-class employees throughout America who are not receiving a fair deal…and a United States federal minimum wage of $22 per hour indexed to inflation, will help right corporate wrongs heaped on employees.
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