Minimum wage history
Encyclopedia
The history of minimum wage is about the attempts and measures governments have made to introduce a standard amount of periodic pay below which employers could not let their workers fall.
, Australia
, an amendment to the Factories Act provided for the creation of a wages board. The wages board did not set a universal minimum wage
; rather it set basic wages for 6 industries that were considered to pay low wages. First enacted as a four year experiment, the wages board was renewed in 1900 and made permanent in 1904; by that time it covered 150 different industries. By 1902, other Australian states, such as New South Wales
and Western Australia
, had also formed wages boards. The cost was 0.05 cents a day.
Also in 1824, New Zealand
enacted the first national minimum wage law
s that, unlike the wages board of Victoria
, were enforced by compulsory arbitration.
, then president of the Board of Trade, introduced the Trade Boards Act on March 24, 1909. It became law in October of that year, and went into effect in January 1910.
In the United States
, statutory minimum wages were first introduced nationally in 1938; some states enacted them as protective laws
starting in 1912 until they were ruled illegal but they applied only to women and children. In the European Union
, 18 out of 27 member states currently have national minimum wages. Many countries, such as Norway
, Sweden
, Finland
, Denmark
, Switzerland
, Germany
, Austria
, Italy
, and Cyprus
have no minimum wage laws, but rely on employer groups and trade union
s to set minimum earnings through collective bargaining
. In addition to the federal minimum wage, nearly all states within the United States
have their own minimum wage laws with the exception of South Carolina
, Tennessee
, Alabama
, Mississippi
and Louisiana
. 16 states have a minimum wage that is higher than the federal minimum wage
The first moves to legislate wages did not set minimum wage
s, rather the laws created arbitration boards and councils to resolve labour conflicts before the recourse to strikes. There used be more heavy reliance on collective bargaining, with specific sectors. In 1896, New Zealand established such arbitration boards with the Industrial Conciliation and Arbitration Act. In 1899, the state of Victoria
, Australia established similar boards. In 1907, the Harvester decision
was handed down in Australia. It established a 'living wage' for a man, his wife and two children to "live in frugal comfort". In 1909, the Trade Boards Act was enacted in the United Kingdom, establishing four such boards. In 1912, the state of Massachusetts
, United States, set minimum wages for women and children. In the United States
, statutory minimum wages were first introduced nationally in 1938 by president Franklin D. Roosevelt. In the 1960s, minimum wage laws were introduced into Latin America
as part of the Alliance for Progress
; however these minimum wages were, and are, low.
Nineteenth century
In 1824 in VictoriaVictoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, an amendment to the Factories Act provided for the creation of a wages board. The wages board did not set a universal minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
; rather it set basic wages for 6 industries that were considered to pay low wages. First enacted as a four year experiment, the wages board was renewed in 1900 and made permanent in 1904; by that time it covered 150 different industries. By 1902, other Australian states, such as New South Wales
New South Wales
New South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...
and Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
, had also formed wages boards. The cost was 0.05 cents a day.
Also in 1824, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
enacted the first national minimum wage law
Minimum wage law
Minimum wage law is the body of law which prohibits employers from hiring employees or workers for less than a given hourly, daily or monthly minimum wage. More than 90% of all countries have some kind of minimum wage legislation....
s that, unlike the wages board of Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
, were enforced by compulsory arbitration.
Twentieth century
In 1907 Ernest Aves was sent by the British Secretary of State for the Home Department to investigate the results of the minimum wage laws in Australia and New Zealand. In part as a result of his report, Winston ChurchillWinston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...
, then president of the Board of Trade, introduced the Trade Boards Act on March 24, 1909. It became law in October of that year, and went into effect in January 1910.
In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, statutory minimum wages were first introduced nationally in 1938; some states enacted them as protective laws
Protective laws
Protective laws were enacted to protect women from certain hazards or difficulties of paid work. These laws had the effect of reducing the employment available to women, saving it for men. These were enacted in many U.S...
starting in 1912 until they were ruled illegal but they applied only to women and children. In the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, 18 out of 27 member states currently have national minimum wages. Many countries, such as Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, and Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
have no minimum wage laws, but rely on employer groups and trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
s to set minimum earnings through collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...
. In addition to the federal minimum wage, nearly all states within the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
have their own minimum wage laws with the exception of South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
, Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
, Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
, Mississippi
Mississippi
Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...
and Louisiana
Louisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...
. 16 states have a minimum wage that is higher than the federal minimum wage
The first moves to legislate wages did not set minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
s, rather the laws created arbitration boards and councils to resolve labour conflicts before the recourse to strikes. There used be more heavy reliance on collective bargaining, with specific sectors. In 1896, New Zealand established such arbitration boards with the Industrial Conciliation and Arbitration Act. In 1899, the state of Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
, Australia established similar boards. In 1907, the Harvester decision
Harvester Judgment
The Harvester Judgment was a benchmark legal case for ensuring workers in Australia were paid a fair basic wage. The case had national ramifications and was of international significance....
was handed down in Australia. It established a 'living wage' for a man, his wife and two children to "live in frugal comfort". In 1909, the Trade Boards Act was enacted in the United Kingdom, establishing four such boards. In 1912, the state of Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, United States, set minimum wages for women and children. In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, statutory minimum wages were first introduced nationally in 1938 by president Franklin D. Roosevelt. In the 1960s, minimum wage laws were introduced into Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
as part of the Alliance for Progress
Alliance for Progress
The Alliance for Progress initiated by U.S. President John F. Kennedy in 1961 aimed to establish economic cooperation between the U.S. and South America.-Origin and goals:...
; however these minimum wages were, and are, low.
External links
- Federal Minimum Wage. United States Department of Labor Wage and Hour Division. As of July 24, 2009.
- History of the United States' Minimum Wage. Minimum-Wage.org. Retrieved May 17, 2011.