Saturday, February 03, 2007

Tomato Justice (3) - Low Wages

The Bible does not specify a particular wage rate for particular task. This would be impossible because wages vary according to the type of work and the availability of workers. What is low in America might be high in another country. There is not such thing as a just wage. Biblical justice is more concerned about the process that about the wage level. If the process of wage negotiation was just, the wages are not unjust. A just wage is a rate agreed by two employer and employee without coercion.

The Bible does not even forbid the payment of different rates to different people. Jesus said that at employer is free to offer whatever wages he chooses, provided that no one is forced to accept those wages (Matt 20:1-16). Employers can offer a low wage rate, if they choose. If they go to low, they will find that not prospective employees accept their offer. They might have to go higher to get the staff they need. If many people are looking for work, their low offer might be accepted.


Offering a low wage is only wrong, if the person receiving the offer is so destitute that they have not choice but to accept the low wage. Their circumstances mean that they are forced to accept the offer. This is fraud.

Low wages do not prove that an employer has defrauded their workers. Fraud is only proven, if the workers were poor and had no choice but to accept a low wage. They have been robbed because they were forced by circumstances to accept a lower wage than they would normally accept.

A high wage can also be unjust, if the employees used threats to obtain it.

With this background, my next post will look at what is happening in the Tomato case.

3 comments:

Gene said...

Ron,
I am no social activist. In fact I tend toward a pretty Righty bent.

But, there is a force in our USA marketplace that is an imposer of Low Wages. It's a cycle. They pay little, therefore others use the same strategies to pay little, they come in and thru predatory practice eliminate all other wage paying competition and therefore are the only game in town. Work for them or no one.

I'm speaking here of Wal-Mart in Rural America.

Over and over again I have seen them come in and burn over a small town until they are the only option left. Then they pay peanuts.

I am no fan of Wal-Mart. AND, they bring 90% of the goods they sell cheap from China having driven most of the US manufactureres offshore because of the drive for lower and lower prices.

Therefore they have lowered wages across the spectrum of the American landscape, manufacturing and retail.

Wal-Mart is bad for America.

Bad for the world.

What say ye??

Steve Scott said...

Let me add my $.02US to Gene's comment. While I have problems with corporations in one way, since they are creations of the state and the state gives them special tax and legal priviledges the rest of us don't have, in general I don't think Wal-Mart as a business is necessarily the problem.

It is said that every man has his price. As somebody who has experienced Wal-Marts trying to enter many different communities around me, every one of your concerns is made known to every citizen every day through the media for months or years for each proposed Wal-Mart. WWIII breaks out in every community that Wal-Mart tries to enter. If their practices are so immoral, nobody would ever shop there or work there. The lower prices wouldn't be worth supporting such immorality. So, for Wal-Mart to succeed, especially in rural areas, their practices need to be supported by a large enough percentage of the community in the form of shoppers. Money talks, and people use their money to talk. If the lower prices offered by Wal-Mart are the temptation that slays most shoppers in winking at such immorality, then the shoppers are ultimately the real cause of the low wages and death of mom and pop shops.

But, in as far as state interference in the market that gives unfair priviledges to large corporations might be the cause of your concerns, then I aim my criticisms more at the state (and the public that supports it) than at Wal-Mart. Personally, I'm no fan of Wal-Mart either; I despise Wal-Mart's atmosphere, layout, dinginess and level of employee competence. I wouldn't shop there if you paid me. But my wife does, and that's fine with me, because she's willing to put up with something I won't in order to get a good deal.

I buy gasoline from independents because of their lower prices (kind of a contra-walmart scenario), shop for bulk items at Costco, but get my hair cut from a professional haridresser. I've gone to her for 20 years now, and my family goes too. We pay double of SuperCuts type chop shops, infinite what uncle Earl could do, but the quality, lasting friendship and gossip are well worth it.

So, I'm with you to a point, but I think it's a mixed bag.

Ron McK said...

Gene
Steve has answered you fairly well.

Saying that Walmart is bad for America is big call.

The reality is that no one is forced to shop at Walmart. The fact that they continue functioning proves that they must be providing customers with what they want.

No one is forced to work at Walmart either. And Walmart has no problem getting staff. If they are the only game in town and there is plenty of people looking for work, some Christians should start a business and make use of these people.

I cannot see which biblical standard they have broken. You need to more precise before condemming.

The United States is a country that worships material things. So supplying material things is a good business to be in. I suspect most of the problem rests with the American people.

Steve is right about the State. The policies of the Fed ensure that is cheaper to manufacture in China than in the US.

Ron