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The Challenge of our Present Minimum Wage

by Archbishop Alfred C. Hughes
Clarion Herald Column August 24, 2005 Edition

The annual observance of Labor Day invites us to focus on the great dignity of human labor. We do this within the context of the Church's social teaching.

The Gospel message declares that "the laborer is worthy of his hire" (Lk 10:7). Although this statement directly refers to apostles, these words enunciate a principle that has much broader implications for all laborers. The Scripture does not offer a fully developed teaching on the remuneration of the laborer. The parable of the laborers in the vineyard focuses not so much on this life but the eternal remuneration for those called at different stages of life. The parable of the unfaithful steward is directed to the faithful disciple and urges greater wisdom, initiative and prudence. The parable of the talents teaches each to contribute according to what has been received.

Early Church writing, reflecting on the Scriptures, upheld the dignity of the human person, the family and work in an agrarian culture. During the Middle Ages, feudal social structure provided the context for economic life. Those in charge were enjoined to treat those working for them with respect; laborers were expected to do an honest day's work.

The development of city life led eventually to the Industrial Revolution. This provided the impetus for the development of a more organized social teaching in the Church. Popes Leo XIII, Pius XI, John XXIII, Paul VI and John Paul II have contributed to a growing body of social teaching that places a priority of labor over capital. Now the digital revolution introduces a new set of challenges as computerized services threaten to replace personal human service.

The Second Vatican Council taught that "remuneration for work should guarantee man the opportunity to provide a dignified livelihood for himself and his family on the material, social, cultural and spiritual level, taking into account the role and the productivity of each, the state of the business and the common good" ("Church in the Modern World," 67). The "Catechism of the Catholic Church" teaches: "a just wage is the legitimate fruit of work. To refuse or withhold it can be a grave injustice." (CCC, 2434)

The issue of a living wage for workers is a pressing issue. A parent responsible for the support of a family, working 40 hours a week at the current minimum wage ($5.15), earns $10,712 per year. This is nearly $5,000 below the poverty line for a family of three. In the last seven years this salary has lost almost 20 percent of its buying power. For instance, the $5.15 hourly wage of 1997, adjusted for inflation, is worth $4.23 today. In recent years advocates have proposed raising the minimum wage to $6.15.

The business community has expressed serious concerns. Would the raising of the minimum wage increase unemployment among the working poor because jobs might be eliminated? Would a higher wage discourage firms from locating here?

Independent studies tend to minimize the costs involved. The average cost per firm would be less than one percent of the annual expenses and most of this cost would be absorbed by consumers. It is true that some smaller firms would incur higher costs and a few might fail. But all minimum wage earners would realize an 11.8 percent increase in gross income. Retail stores alone could realize a projected three percent increase in sales. The government would experience fewer costs for food stamps and other programs benefiting the poorest of the poor.

In 2002, a proposal to raise the minimum wage $1 per hour was placed before the New Orleans voters and was passed overwhelmingly. The Louisiana State Supreme Court ruled, however, that the proposed New Orleans ordinance could not supplant the rate established by the State of Louisiana. Unfortunately, statewide legislation has not passed after several attempts including this past session.

The Church's social teaching requires us, as employees, as voters, as parents, as sisters and brothers in Christ, to give serious attention to this critical issue. While no one particular proposal can lay sole claim to translating the Gospel teaching into practice, the proposal to raise the minimum wage is an important way to make concrete the Church's teaching that workers should be able to realize a family living wage. I am, therefore, asking our schools, agencies and parishes to ensure that they are paying full-time employees at least a dollar above the minimum wage.

God grant us the wisdom and courage to find the best way to promote the authentic dignity of the human laborer.

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