Californias Minimum

Wage Debate

Ag 401
Benjamin Lehan
 Californias Minimum Wage
New Minimum Old Minimum
Effective date
Wage Wage

January 1, 2016 $10.00 $9.00

July 1, 2014 $9.00 $8.00

January 1, 2008 $8.00 $7.50

January 1, 2007 $7.50 $6.75

Over the next 6 years, minimum wage in California will increase $1 per year,
Eventually reaching $15 an hour in 2022.
 Californias Agriculture

Californias agriculture industry is one of the best in the country.

In 2015, Californias top commodities were as follows:

Milk $6.29 billion

Almonds $5.33 billion
Grapes $4.95 billion
Cattle, Calves $3.39 billion
Lettuce $2.25 billion
Strawberries $1.86 billion
Tomatoes $1.71 billion
Poultry/Eggs $1.7 billion
Walnuts $977 million
Hay $945 million
Statistics from the California Department of Food and Agriculture
In 2015 Californias farming output
received over $47 billion. This is a
decrease of nearly 17 percent compared to
2014. California remains the leading US
state in cash farm receipts.

Californias agricultural list of commodities

includes more than 400 products. Over 1/3
of the countrys vegetables and 2/3 of the
countrys fruits and nuts are grown in
California.

Statistics from the California Department of Food and Agriculture

Agricultural Labor in California

The agricultural labor force in California includes:

Farmers
Managers
Consultants
Technical service providers
Many low wage hired farm workers
And many more
 Conditions involving the low-wage farm labor
force introduce very complex and specialized
social, ethical, and economic concerns.

California farms rely on access to a steady

supply of labor, both full time and seasonal.

Californias agricultural sector depends heavily

on low wage immigrant labor.
 Is raising the minimum wage a
good thing?
Keep in mind that raising the minimum wage could affect the livelihood
of many of the front end employees in agriculture, as well as other
industries across the state.

Also keep in mind that businesses will be forced to pay these higher
wages, meaning less profit for the company.

Companies can deal with this in multiple ways Layoffs, increasing the
prices of products, or going out of business completely.
 Pros of the Minimum Wage Increase
Raising the minimum wage would boost economic activity and
spark job growth.

Increasing the minimum wage would reduce poverty.

A higher minimum wage would reduce government welfare

spending.

The minimum wage has not kept up with inflation.

Improvements in productivity and economic growth have

outpaced increases in the minimum wage.

Increasing the minimum wage wouldhttp://minimum-wage.procon.org/

reduce income inequality.
Pros of the Minimum Wage Increase
(2)
Increasing the minimum wage may have a ripple effect, raising
the incomes of people who make slightly above the minimum
wage.

Increasing the minimum wage would increase worker

productivity and reduce employee turnover.

The current minimum wage is not high enough to allow people

to afford housing.

The current minimum wage is not high enough to allow people

to afford everyday essentials.

http://minimum-wage.procon.org/
Cons of the minimum wage increase
Increasing the minimum wage would force businesses to lay off
employees and raise unemployment levels.

Raising the minimum wage would increase poverty.

A minimum wage increase would hurt businesses and force

companies to close.

Raising the minimum wage would increase the price of consumer

goods.

Teenagers and young adults may be shut out of the workforce if the
minimum wage is increased.

http://minimum-wage.procon.org/
Cons of the minimum wage increase
(2)
Raising the minimum wage would disadvantage low-skilled
workers.

If the minimum wage is increased, companies may use more

robots and automated processes to replace service employees.

Increasing the federal minimum wage would disproportionately

harm the poorest areas of the United States.

Raising the minimum wage would increase housing costs.

The free market should determine minimum wages, not the

federal government.
http://minimum-wage.procon.org/
Ethical Discussion

How do we handle this situation in California?

Should the wage be increased further? Should it be

decreased?

How would you feel if you ran a large operation in

California that employed dozens, or even hundreds of
employees?

Would you change anything about the minimum wage

law?
Various Articles on the Subject

http://www.sacbee.com/news/business/article68926482.html

http://www.governing.com/topics/mgmt/tns-california-farmworkers-overt
ime.html

http://www.huffingtonpost.com/2011/08/10/california-farm-workers-low-
wages_n_923941.html