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To: NY.SS-Bar9
2) The minimum wage has little impact on manufacturing. Starting salaries are normally well above established minimums.

The minimum wage is the benchmark from which union scale is marked up in many cases, which is the reason for their support of it.

157 posted on 11/25/2002 11:59:22 AM PST by Protagoras
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To: ThomasJefferson
Yes, many union contracts mention minimum wage as a reference for their wages. But here is where a free market economy comes in. The business is free to make product using more technology / less labor - or - move the jobs to another domestic location with lower labor costs - or - cease prodution if they cannot be competitive.

All three options result in the union losing members. Most unions in the manufacturing sector realize this and bargain accordingly. Where the minimum wage does have an impact is in the service sector. You can't move your hospital to North Carolina when the janitors start demanding unbearable compensation. Which is a whole 'nother topic.

183 posted on 11/25/2002 1:51:01 PM PST by NY.SS-Bar9
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