Chapter 14 Marginal Jobs

Marginal Jobs are characterized one of the following: Marginal Jobs are characterized one of the following: Illegal Illegal Unstable – Contingency or contract work Unstable – Contingency or contract work Inadequate pay and hours Inadequate pay and hours Not Government Regulated (shadow economy) Not Government Regulated (shadow economy)

Marginal Jobs Companies faced with international competition can: Companies faced with international competition can: Reduce labor costs: layoff workers and/or create marginal jobs. Reduce labor costs: layoff workers and/or create marginal jobs. Build up Company: reinvest in technology, innovate, expand product market. Build up Company: reinvest in technology, innovate, expand product market.

Marginal Jobs Minimum Wage Minimum Wage National minimum wage increased from 5.15 to 7.25 in First increase in 10 years. National minimum wage increased from 5.15 to 7.25 in First increase in 10 years. How much do people on minimum wage make per year? How much do people on minimum wage make per year? Why are people resistant? Why are people resistant? What about wages that are interconnected – like Ben and Jerry’s. What about wages that are interconnected – like Ben and Jerry’s.

Minimum wage workers: In 2011: In 2011: 59.1% American workers age 16 and over were paid at hourly rate. 59.1% American workers age 16 and over were paid at hourly rate. Among those 5.2% made wages at or below the Federal minimum wage (thus, no one in Illinois would count)…BUT Among those 5.2% made wages at or below the Federal minimum wage (thus, no one in Illinois would count)…BUT 15.1 percent of U.S Families live below the poverty line (below 23,000 for family of four) 15.1 percent of U.S Families live below the poverty line (below 23,000 for family of four)

Employers Who Marginalize 1) Dual Labor Markets 1) Dual Labor Markets Core: White, Male, U.S. Citizens Core: White, Male, U.S. Citizens Periphery: Immigrant, non-white, female….. Periphery: Immigrant, non-white, female….. Who will do the work many don’t want to do? (migrant farming, slaughterhouse jobs). Who will do the work many don’t want to do? (migrant farming, slaughterhouse jobs). Do we need those jobs done? Do we need those jobs done?

Marginal Jobs Many companies claimed unions harmed their businesses by increasing labor costs. Many companies claimed unions harmed their businesses by increasing labor costs. BUT, when companies were given money by government to build up companies, they used it to diversify or sell their business BUT, when companies were given money by government to build up companies, they used it to diversify or sell their business For example, radial tires. Companies received money from govt to invest in technology. They didn’t. Closed down plants. For example, radial tires. Companies received money from govt to invest in technology. They didn’t. Closed down plants. For example, Clinton Corn processing. Took government money and bought companies outside the industry. For example, Clinton Corn processing. Took government money and bought companies outside the industry.

Marginal Jobs International Issues….. International Issues….. No Logo…. No Logo….