Minimum Wage Laws And Labor Unions

905 WordsJul 20, 20154 Pages
In 1938, the Fair Labor Standards Act was created to establish a minimum federal wage to serve as a standard wage to reduce poverty and to secure economic growth is shared across the workforce. Today minimum wage is far below its historical levels and loses its value every year due to inflation. The minimum wage workforces are living close to poverty levels, and insist on the government raising the minimum wage. Sometimes the fight to raise the pay for workers goes unnoticed or unheard, so a labor union is formed. With a bargaining union handling the employee’s best interest, the workers usually improve their wages and quality of life. In this paper we will discuss minimum wage laws and labor unions. Minimum wage is defined as the lowest wage payable to an employee in general or to designated employees as fixed by law or by inion agreement. This wage is compensation created as a reward that is reasonable to the employer and the employee alike. Patton suggests that in compensation policy there should be seven criteria for effectiveness. Compensation should be adequate, equitable, balanced, cost-effective, secure, incentive-providing, and acceptable to the employee (Konopaske, 2013), although the government directly affects minimum wage compensation through wage controls and guidelines. Government laws are established to prevent discrimination. In 1938 the Fair Labor Standard Act (FLSA) was created to counteract the abuses production line workers encountered in

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