Friday, May 2, 2025

Who Are Workers? (2)

Sometimes, joining the labour movement isn't a grand, planned decision, but a sudden immersion. Marianna Costa, who started working in a dye house in 1932, shared her experience of the 1933 textile workers' strike. She initially didn't understand what was happening when she heard chanting outside her work window. She recalled, "There was chanting outside of our work windows, and a big group of people...The line kept getting bigger and bigger...By the time they got to our plant, half the street was just a crowd of people. And they'd say, 'Come on out. Join us. We're going to strike. The president said we can. We're tired of this.'" Confused but unwilling to be left alone, Marianna joined the striking workers. She didn't fully comprehend what a union was at first, only that it was "an organisation that will fight for us to get better protection." This personal account captures the organic, almost spontaneous way workers could be drawn into collective action, driven by a shared sense of grievance and the magnetic pull of solidarity. Her story illustrates how individual awakenings contribute to broader movements, eventually leading to victories like the establishment of a minimum wage and the eight-hour day.

Why is there a minimum wage?
The idea of a minimum wage emerged during the late 19th and early 20th centuries as part of a broader movement to address the harsh conditions faced by workers during the Industrial Revolution. At that time, rapid industrialisation led to a surplus of labour, and many employers took advantage of workers—particularly women and children—by paying extremely low wages that were insufficient to support basic living needs. As a result, poverty persisted even among those who worked full time.
The first country in the world to apply a minimum wage law was New Zealand. This is well-documented in multiple historical and economic sources, including in Minimum Wages by David Neumark and William Wascher and A Living Wage: American Workers and the Making of Consumer Society by Lawrence B. Glickman (1997, University Press).
Glickman confirms that New Zealand's pioneering minimum wage policy influenced similar movements in other parts of the world, including Australia and later the United Kingdom and the United States. He explains that New Zealand's approach was progressive for its time, focusing not just on labour relations but on the broader idea of ensuring workers could maintain a decent standard of living.

In Minimum Wages (2008, MIT Press), economists David Neumark and William Wascher provide a detailed historical account of the minimum wage in the United States, tracing its origins, legislative developments, and economic implications. The authors state that New Zealand was the first country to enact a national minimum wage law, which was introduced in 1894 as part of its Industrial Conciliation and Arbitration Act. The law aimed to resolve labour disputes through arbitration and included wage-setting mechanisms to ensure fair compensation. The goal was to protect workers from exploitation and promote industrial peace.
According to Neumark and Wascher, the concept of a minimum wage in the U.S. emerged during the Progressive Era, a period marked by social activism and political reform aimed at addressing the adverse effects of industrialisation. Early minimum wage laws were enacted at the state level, primarily focusing on women and children, who were often subjected to exploitative labour conditions and substandard wages. However, these state laws faced legal challenges and were frequently struck down by the courts.
The federal minimum wage was firmly established with the passage of the Fair Labour Standards Act (FLSA) in 1938. This landmark legislation set a national minimum wage of 25 cents per hour, aiming to eliminate labour conditions detrimental to workers' health and well-being. The FLSA also introduced regulations on maximum working hours and child labour, laying the foundation for modern labour standards in the U.S.
Over the years, the federal minimum wage has been adjusted numerous times to account for inflation and changing economic conditions. Neumark and Wascher analyse these adjustments and their impacts on employment, particularly among low-skilled workers. They argue that while the minimum wage aims to improve earnings for low-income workers, it can also lead to reduced employment opportunities for the very groups it intends to help, due to increased labour costs for employers.
The authors' comprehensive review of empirical studies suggests that minimum wage increases often result in job losses for less-skilled workers and may not effectively alleviate poverty. They contend that alternative policies, such as the Earned Income Tax Credit (EITC), might be more effective in supporting low-income families without the unintended consequence of reducing employment opportunities.

Neumark and Wascher also analyse the effects of minimum wage policies on employment, drawing from over two decades of empirical research. Their findings suggest that increases in the minimum wage tend to reduce employment opportunities, particularly for low-skilled and younger workers. They conclude that the majority of credible studies indicate that raising the minimum wage leads to a reduction in employment among low-wage workers. This effect is especially pronounced for teenagers and young adults, who are more likely to be employed in minimum wage jobs.
Their analysis estimates that a 10% increase in the minimum wage could result in a 1–2% decrease in employment among teenagers and a 1.5–2% decrease among young adults. The negative employment effects are more substantial among the least-skilled groups, as these workers are more likely to be employed at or near the minimum wage and have fewer alternative employment opportunities.
The authors find little convincing evidence that minimum wage increases have positive effects on employment. Studies suggesting positive impacts often focus on narrow industries or specific contexts and do not reflect broader labour market trends. Given the potential for job losses among vulnerable populations, Neumark and Wascher argue that minimum wage policies may not be the most effective tool for reducing poverty. They suggest that alternative measures, such as the Earned Income Tax Credit (EITC), might better support low-income workers without the unintended consequence of reducing employment opportunities.

According to Neumark and Wascher, the effects of minimum wages on the distribution of incomes are mixed and often limited, particularly in terms of reducing poverty or significantly improving income equality. They find that while minimum wage increases may slightly compress wage distributions at the very bottom (by raising wages for some low-paid workers), the overall impact on income inequality is modest. This is because minimum wage policies do not typically affect the broader middle or upper parts of the income distribution. One of their key findings is that a large share of minimum wage workers are not actually in poor households. Many are teenagers or second earners in middle-income families. As a result, raising the minimum wage may increase the earnings of individuals who are not poor, diluting its effectiveness as an anti-poverty tool.
The authors argue that minimum wage increases are not well-targeted to poor families. Empirical studies reviewed in the work show that minimum wage hikes have little to no measurable effect on reducing the poverty rate. This is partly because low-income households may face job losses or reductions in hours worked due to higher labor costs, which can offset the wage gains.
If higher minimum wages lead to job losses or fewer job opportunities for low-skilled workers, particularly those in poor families, the policy can unintentionally worsen the income situation for some of the very people it’s meant to help. Thus, the authors caution that minimum wage laws might have regressive effects in certain cases. They advocate for targeted income-support policies like the Earned Income Tax Credit (EITC) as more effective tools for improving the incomes of low-wage workers and reducing poverty. These programs are directly tied to family income and are better suited to help those truly in need.

Why is there an eight-hour day?
The eight-hour workday has its roots in the labor movements of the 19th century, particularly during the height of the Industrial Revolution, when many workers were forced to work long hours—often 10 to 16 hours a day—in dangerous and exhausting conditions. Workers began to organize and protest, demanding shorter hours with the slogan: “Eight hours for work, eight hours for rest, and eight hours for what we will.”
The first country in the world to implement the eight-hour workday by national legislation was Uruguay in 1915. However, Australia (specifically the state of Victoria) was among the first places in the world to implement the eight-hour workday through labour action and agreements, dating back to 1856. These early efforts significantly influenced global labour movements.
In Labor’s Time: Shorter Hours, the UAW, and the Struggle for American Unionism (2004, Temple University Press), Jonathan Cutler explains how the idea of the eight-hour workday originated with labour movements in the 19th century and spread internationally. He credits Australian stonemasons in Melbourne in 1856 as early pioneers who successfully campaigned for and achieved an eight-hour workday. Although this was not legislated at a national level, it became a model for later efforts in other countries.

One of the earliest and most significant events advocating for an eight-hour workday was the Haymarket Affair in Chicago in 1886. Workers across the United States went on strike on May 1, 1886, to demand an eight-hour day. During a protest on May 4 in Chicago’s Haymarket Square, a bomb was thrown at police, leading to violence and a harsh crackdown on labour organisers. Despite the tragic outcome, the event became a pivotal moment in labour history and helped solidify the demand for shorter workdays.
The eight-hour day became more widespread in the early 20th century, and major strides were made when Henry Ford implemented it in his factories in 1914—reducing hours and doubling pay to improve worker productivity and morale. Finally, in the United States, the eight-hour day was codified by the Fair Labour Standards Act of 1938, which not only set a minimum wage but also established the standard 40-hour workweek.

The goal of the eight-hour day was to protect workers’ health, allow time for family and personal development, and ensure that labour did not consume a person’s entire life.
In Eight Hours: The Workers and the Eight-Hour Workday and the Shorter Workday, Its Philosophy (2021, Legare Street Press), Samuel Gompers, a prominent labor leader and founder of the American Federation of Labor, discusses the international labour movement’s efforts to secure an eight-hour day, especially in the United States. He acknowledges that Uruguay became the first country to adopt a national eight-hour workday law in 1915, while workers in other countries had achieved it through strikes, collective bargaining, or regional legislation before that.
According to Gompers, the philosophy and rationale behind the push for an eight-hour workday are rooted in justice, human dignity, and social progress. Gompers, a pioneering American labour leader, argued that reducing working hours was essential not only for economic fairness but also for improving the moral and intellectual condition of the working class.
Gompers believed that labourers were not mere tools for production, but human beings deserving of time for rest, family, and personal growth. He wrote that "man was not created to toil incessantly," and that shortening the workday would help restore workers’ dignity and humanity.
The eight-hour day was framed as essential for workers to develop themselves morally and socially. Gompers emphasised that leisure time was necessary for education, civic engagement, and cultural participation. In his view, a society that denied workers time for personal development was unjust and unsustainable. Although some critics feared economic loss, Gompers argued that shorter hours would lead to greater productivity, fewer workplace accidents, and healthier workers. Furthermore, it would redistribute work more fairly among the unemployed or underemployed, thereby addressing both poverty and job scarcity.
Gompers linked the eight-hour day to the strengthening of democratic institutions. He believed that when workers had time to engage in public life and self-education, they would become more informed, active citizens capable of contributing to and protecting democracy. The long hours of the industrial era, often exceeding 12–14 hours a day, were seen as a form of exploitation. Gompers viewed the eight-hour demand as a line drawn against unregulated capitalism, insisting that economic systems should serve human needs, not the other way around.

The concepts of "labour" and "workers" are foundational to understanding human societies, economies, and historical development. Examining them through the lenses of definition, history, and economic relevance reveals their multifaceted nature and profound impact.
Historically, the composition of the workforce has varied significantly across cultures and time periods. In pre-industrial societies, labour was often tied to agriculture and artisanal crafts, with family units frequently functioning as economic units. The Industrial Revolution dramatically reshaped who constituted the workforce, drawing large numbers of men, women, and children into factories and mines. Initially, the workforce in many industrialised nations was predominantly male, with women and children often subjected to harsh conditions and lower pay. Over the twentieth and twenty-first centuries, there have been significant shifts, including a dramatic increase in female participation in the formal labour force globally, though disparities in pay and representation persist. The concept of "worker" has also expanded to more explicitly include a vast array of professions, from industrial labourers to service sector employees and knowledge workers.
The term "knowledge worker" was first coined by management consultant and author Peter Ferdinand Drucker in his 1959 book, "Landmarks of Tomorrow: A Report on the New 'Post-Modern' World (1957, Harper & Brothers)." He defined them as high-level workers who apply theoretical and analytical knowledge, typically acquired through formal training and education, to develop new products, services, and solutions.

In an increasingly complex and information-driven world, a specific category of professionals known as "knowledge workers" has become central to economic progress and organisational success. These are individuals whose primary capital is their knowledge, and their main task is to "think for a living."
Unlike manual labourers who rely on physical skills or information workers who primarily process and apply existing information, knowledge workers are tasked with generating new knowledge, innovating, solving complex problems, and driving strategy. Their work is characterised by its intellectual nature, requiring critical thinking, creativity, and often a high degree of autonomy.
Unlike manual labourers who rely on physical skills or information workers who primarily process and apply existing information, knowledge workers are tasked with generating new knowledge, innovating, solving complex problems, and driving strategy. Their work is characterised by its intellectual nature, requiring critical thinking, creativity, and often a high degree of autonomy.
Examples of knowledge workers span a wide array of fields and include professionals such as Information and communication technology (ICT) professionals, physicians and pharmacists, architects and engineers, scientists and researchers, design thinkers, public accountants and lawyers, librarians and archivists, editors and academics.
Peter Drucker's introduction of the "knowledge worker" concept was prescient. He foresaw a fundamental shift in the nature of work, moving away from an economy dominated by manual, blue-collar jobs towards one where the intellectual capabilities and knowledge of employees would be the most valuable assets. Drucker predicted that by the 21st century, the productivity of knowledge workers would be the paramount concern for organisations. This shift was seen as an evolution of the "white-collar worker," a term that emerged in the 1920s to describe office-based employees distinct from industrial labourers. As economies advanced and technology evolved, particularly with the rise of information technology, the role and importance of those who work with their minds rather than their hands became increasingly evident.
Knowledge workers possess a distinct set of characteristics and skills that enable them to thrive in their roles. They typically have advanced or specialised knowledge in their respective fields, often backed by formal education, certifications, and significant experience. Crucially, they are committed to continuously updating and expanding this knowledge base. Their work revolves around handling, analysing, interpreting, and creating information. They use data to inform decisions, devise strategies, and generate new insights.
A hallmark of knowledge workers is their ability to think critically and analytically to solve complex problems, coupled with the creativity to innovate and develop novel solutions.
Knowledge workers often operate with a significant degree of independence. They are responsible for managing their own time, setting priorities, and making decisions related to their tasks. They heavily rely on various forms of technology, including software tools, databases, and communication platforms, to access, process, and disseminate information effectively.
The ability to articulate complex ideas clearly, collaborate effectively with diverse teams, and share knowledge is essential. Given the rapid pace of technological and informational change, a commitment to lifelong learning and the ability to adapt to evolving work environments are crucial.
They are adept at identifying issues, analyzing their components, and developing effective and often innovative solutions. Knowledge workers typically exhibit a desire to learn, grow, and embrace new challenges and opportunities for development.

The rise of the knowledge worker signifies a broader transition towards a "knowledge economy," where knowledge itself is the primary driver of economic growth, innovation, and competitiveness. The contributions of knowledge workers are vital for both individual organisations and the economy as a whole. By generating new ideas, developing new products and services, and improving processes, knowledge workers are at the forefront of innovation, helping organisations stay ahead in a competitive landscape. Their expertise and analytical capabilities provide the foundation for sound strategic planning and effective operational decisions within companies.
Leveraging their specialised skills and technological tools, knowledge workers can streamline workflows, optimise processes, and boost overall organisational performance.
They are key contributors to an organisation's intellectual capital, playing a crucial role in creating, sharing, and managing the knowledge base that underpins its operations and growth.
On a macro level, a skilled and productive cohort of knowledge workers is essential for national economic development, resilience, and the ability to compete globally. The increasing prominence of knowledge workers is reshaping how work is organised, managed, and valued, leading to more flexible work arrangements and a greater emphasis on continuous skill development.
However, the increasing importance of knowledge workers also brings challenges. Concerns exist about equitable access to the education and skills required for these roles, potentially leading to a widening gap between highly skilled knowledge workers and other segments of the workforce. Managing and motivating knowledge workers, fostering environments that nurture their creativity and productivity, and effectively harnessing their intellectual output remain key considerations for organisations in the 21st century.

Debates continue regarding the full recognition and valuation of unpaid care work, predominantly performed by women, as a form of labour. David R. Roediger's "The Wages of Whiteness: Race and the Making of the American Working Class (2007, Verso)" explores how racial identity has shaped the definition and experience of the working class in the United States.