Big Labor Uses Wage Laws to Boost Numbers

Washington Free Beacon ^ | December 18, 2014 | Bill McMorris

[george76]

union carve outs in many minimum wage hikes. Unions may be pushing for resident Obama’s massive minimum wage hike, but many seek special carveouts from existing wage laws, according to a new study.

The Chamber of Commerce analyzed dozens of minimum wage laws in cities across the country and found that many of the statutes exempt unionized employees from the requirement. Unions exploit these exemptions in order to make union labor more competitive with non-union shops.

“Some local ordinances in particular include an exemption for employers that enter into a collective bargaining agreement with a union,” the report says. “This ‘escape clause’ is often designed to encourage unionization by making a labor union the potential ‘low-cost’ alternative to new wage mandates, and it raises serious questions about whom these minimum wage laws are actually intended to benefit.”

When San Francisco adopted a $10.55 minimum wage in 2013, union employers were able to escape the large hike in labor costs. The unionized shops were granted the ability to remain below that market rate in perpetuity, while other companies had to adopt the new wage over the course of several years.

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The exemptions are not the only way that unions benefit from wage hikes. Many union contracts use the minimum wage as a baseline for setting pay. Those workers will receive automatic pay bumps if President Obama passes his proposed $10.10 wage, which the non-partisan Congressional Budget Office estimates will eliminate up to 1 million jobs.

Many of the minimum wage campaigns across the country benefit from union assistance. The existence of the exemptions demonstrates that they are acting out of self interest, rather than concern for the working class

[PCPOET7]

I just want to state the biggest reason for my objection on minimum wage increases. When ever there is a minimum wage increase it wipes out what ever pay raises that someone that is working at a low wage job gets. because minimum wage goes up the cost of housing on low end housing goes up because there is more money for housing. the effect of wages going up on minimum wages reverberates through out the economy with the costs of everything going up. the longer that the minimum wage stays at the point it is the better off those that are making minimum wage.

[ArmstedFragg]

Since at least the 60’s, wage and hours laws have had exceptions for union members. The rationale was that those who were collectively bargaining with employers could go to their unions if they felt exploited whereas those who were on their own were more vulnerable, and so needed government protection.

[Spartan79]

These minimum wage exemptions for employees subject to union agreements are not the only carve-outs for unions. Some state laws imposing minimum standards for meal periods, breaks, and other working conditions specifically exclude employees subject to collective bargaining agreements.