BULLETIN OF THE U. S. BUREAU OF LABOR STATISTICS. WHOLE NO. 167. WASHINGTON. APRIL, 1915. MINIMUM-WAGE LEGISLATION IN THE UNITED BY CHAS. H. VERRILL. INTRODUCTION AND SUMMARY. The minimum-wage movement in this country, which resulted in the enactment of minimum-wage laws in nine States in 1912 and 1913, while perhaps appearing to be a sudden development, was in fact the result of considerable investigation in this country and of long investigation, agitation, and experiment in New Zealand, Australia, and Great Britain. In Great Britain, especially, investigations of sweated trades and studies of the remedies possible to correct the evil conditions found therein, and especially to deal with low wages, had extended over a period of more than 20 years. The experience with the legal minimum wage as a remedy had in New Zealand and Victoria extended over a period of more than 15 years. The reason which has led to the enactment of minimum-wage laws has been much the same in most of the countries, namely, low wages. While investigations in the United States have rarely disclosed conditions comparable with those found in some of the sweated industries in Great Britain and in Australia, yet all of them have brought out the fact that in many industries a large proportion of the women were working at wages insufficient to meet the necessary cost of living if dependent upon their own earnings. The development of the movement for a legal minimum wage may be seen from the following list of the foreign and American States having such laws, with the dates of the first enactments. Minimum-wage Laws of Various Countries, with Dates of First Enactment. New Zealand: Industrial conciliation and arbitration act, August 31, 1894. Victoria: Factories and shops act, July 28, 1896. South Australia: Factories act, December 5, 1900. New South Wales: Industrial arbitration act, December 10, 1901. 5 Western Australia: Conciliation and arbitration act, February 19, 1902. Commonwealth of Australia: Commonwealth conciliation and arbitration act, December 15, 1904. Queensland: Wages boards act, April 15, 1908. Great Britain: Trade boards act, October 20, 1909; coal mines (minimum wage) act, March 29, 1912. United States Massachusetts: June 4, 1912; March 21, 1913; May 19, 1913. Utah: March 18, 1913. Washington: March 24, 1913. Nebraska: April 21, 1913. Minnesota: April 26, 1913. Colorado: May 14, 1913. Wisconsin: July 31, 1913. The minimum-wage law, as it has been known in recent American discussion, and as it is usually understood in Great Britain, Australia, and New Zealand, does not refer to a law in which is fixed a single rate below which no worker may be employed, although such laws are in existence in most of the Australasian States. The minimum wage, as understood in this country and Great Britain, is a wage fixed by some agency created by law, after due investigation has been made. Two methods have grown up in Australia and New Zealand, one or the other of which has been followed in practically all of the States where minimum-wage legislation has been put in force. In Victoria, since the enactment of the first law, July 28, 1896, minimum wages have been established by wages boards, made up of equal numbers of representatives of employers and employees, presided over by an impartial chairman, who has a deciding vote. These wages boards are set up for each trade or industry and are required to discuss conditions and to determine by agreement the minimum wages to be paid in the various processes and occupations in their own industry. These minimum rates, when fixed and published, are for the time being legally binding upon all employers in the industry within the area for which the board is appointed. This method was introduced in South Australia in 1900, in Queensland in 1908, in Tasmania in 1911, but some modification has been made in more recent legislation. A second method of fixing the minimum wage has been followed in New Zealand since 1894. The compulsory arbitration law of New Zealand, adopted primarily for the prevention of strikes and lockouts, conferred upon the arbitration court the authority to fix the condi tions of employment, including the minimum wage to be paid, in the cases coming before it. This method was adopted by New South Wales in 1901, Western Australia in 1902, and the Commonwealth of Australia in 1904. In the States which have the industrial arbitration system, industrial agreements of employers and employees under certain conditions may be registered and have the force of awards. They are enforceable against the parties and such other organizations and persons as signify their intention to be bound by agreement. In some of the States these industrial agreements have become very important. Thus, at the end of September, 1914, 89 such agreements were in force in New South Wales and 84 in Western Australia. An important difference between the wages board and the compulsory arbitration method is that the wages board itself takes the initiative in determining wages and conditions of employment for the industry, without waiting for a dispute to arise, while under the compulsory arbitration method the court itself does not initiate proceedings, but waits until a dispute brings the question of wages or conditions before it for adjustment. Under the wages-board system each trade or industry has its own board, whereas an arbitration court ordinarily deals with all the industries within a district. Another important difference is in the fact that the wages boards consist of persons representing both employers and employees, with an impartial chairman, while the arbitration court usually consists of one member only, who may, however, be assisted by experts or assessors. A recent tendency in Australia is to combine the most successful features of the two systems. Thus, Victoria since 1903 and South Australia since 1907 have had courts of industrial appeals, which may review the determinations of wages boards. Queensland since 1912 has had an industrial court to which appeals may be made. In Tasmania appeal from a wages-board determination may be made to the supreme court. On the other hand, New South Wales introduced in 1908 wages boards (or "industrial boards") in connection with its system of compulsory arbitration, and New Zealand in the same year added conciliation councils, whose functions and methods are somewhat similar to those of the wages boards in Australia. In addition to the laws providing for the fixing of a minimum wage by wages boards or courts of arbitration, the laws specifying a wage below which no worker may be employed, which have already been referred to, are important as limiting the wages for children or apprentices. A special reason for their enactment was to prevent the employment of children or apprentices without any wage or at a premium, as was often done under the pretense of teaching the trade. All of the Australasian States except Western Australia now have such laws. In New Zealand the law specifies a minimum of 5s. ($1.22) a week for the first year, 8s. ($1.95) a week for the second year, to be increased 3s. (73 cents) a week for each additional year of employment in the same trade until a wage of 20s. ($4.87) is reached. No premium may be paid, nor any deduction made from the wages of any boy or woman under 18 except for time lost through the worker's fault or illness; or on account of the temporary closing of the factory for cleaning or repairing of machinery. Under the corresponding laws the minimum in Victoria is 2s. 6d. (60.8 cents) a week; in South Australia, New South Wales, and Tasmania, 4s. (97.3 cents) a week; and in Queensland, 5s. ($1.22) a week. In Queensland and Tasmania the law provides for an increase in wages, according to years of service, somewhat as in New Zealand. The minimum-wage laws, both in New Zealand and in Australia, met with much criticism and opposition in the earlier years. In spite of this fact, however, they have been extended from year to year, until they now apply to practically all industries in all the States. Thus in Victoria the act of 1896, which at first applied to 6 sweated trades only, has been renewed by the approval of the legislature five successive times. The gradual application to the factories and industries in Victoria may be seen by the addition by action of Parliament in 1900 of 21 trades, in 1901 of 11 trades, in 1903 of 1 trade, in 1906 of 11 trades, in 1907 of 2 trades, in 1908 of 4 trades, in 1909 of 16 trades, in 1910 of 20 trades, in 1911 of 12 trades, in 1912 of 19 trades, and in 1913 of 2 trades. In addition by action of the governor in council under the general authority of the law 8 boards were appointed in 1911 and 1 in 1912. The number of special boards existing or authorized at the end of 1913 was 134, affecting approximately 150,000 employees. The extent of the system in the several States, as shown by available reports on April 30, 1914, may be seen from the following statement. The industrial agreements referred to have the force of awards: New South Wales: Industrial boards, 208. Number of awards in force, 260. Industrial agreements in force, 71. Membership of unions, about 200,000. Victoria: Wages boards, 131. Number of determinations in force, 129. Persons affected, 150,000. Queensland: Industrial boards, 81. Number of awards in force, 76. Persons affected, over 90,000.1 1 At the end of June, 1914, the number of persons affected by industrial-board awards in Queensland was reported as 90,000 under 92 awards. |