"At Earlham College . . . education is carried on with a concern for the world in which we live and for improving human society. The College strives to educate morally sensitive leaders for future generations. Therefore Earlham stresses global education, peaceful resolution of conflict, equality of persons, and high moral standards of personal conduct."
--from the Earlham College Mission Statement
 
 

"I like my job and the people I work for/with [but] I would like to be paid more."

"I'm beginning to believe that they don't want anyone here after 10 years so they won't have to pay any or as many benefits. They obviously don't want to pay any money for loyalty or longevity."

"[There is] no respect for our concerns (by Human Resources). We get treated like we are expendable."

"My concern is to make a living wage so I don't have to work two jobs. I also see that we are not respected in the eyes of management."

"The college does not reward the older workers (the ones who have been here the longest). It is like they want us out - to save money."

"I may not make a lot of money but I love working here. The students, faculty and staff are marvelous people. But it takes two jobs to keep my bills paid and by the grace of God and Earlham and my other job I am able to do so."

"What hurts is when they hire in a new person. That person makes just pennies under what I am making and I've been here [several] years. This has been going on since I started here. Everyone is affected like this and this is no way to keep us motivated. They just pile more [work] on us."

"Somebody [who has] been here 10, 15 years [is] not making much more than someone who started yesterday."

"It concerns me that my coworkers have been here several years and aren't making much more than I am. What does this mean I'll be making in ten years?"
 
 

It is the purpose of this paper to examine what it would mean for Earlham College to adopt a fair wage policy for any and all employees who are employed directly or indirectly by the college. A fair wage policy must include two components: a living wage and yearly raises that adequately reward seniority. We believe a fair wage policy is consistent with the Community Code. Its absence ensures that Earlham will fail to live up to its aspirations.
 
 

Earlhamites are urged to work actively for peace- for the resolution of interpersonal conflict, and for the removal of the causes of violence, especially injustice. People at Earlham are encouraged to strive on a daily basis, and in our work beyond the campus, to enact a concern for a world with justice for every person and without violence. ⁽¹⁾

As the passage implies, violence need not be physical. Peace advocates have long recognized the significance of "structural violence." Structural violence "refers to damage that occurs to individuals or groups due to differential access to social resources and which is due to the normal operation of the social system." ⁽²⁾ Structural violence is often the unintentional result of institutional practices. Thus, poverty, discrimination or any other systemic forms of oppression that deny individuals the benefits taken for granted by most members of society (health care, education, living wages etc.) would be considered structural violence. Earlham's labor policies would then be considered structural violence and in direct violation of the Community Code. 

The principle of "respect for persons" in the Code states that: "Friends hold to the testimony that everyone is worthy of respect regardless of differences. Following from this testimony on RESPECT FOR PERSONS, Friends seek to eliminate language and behavior which treats people as superior or inferior based on such differences." ⁽³⁾ In an employer-employee relationship, respect means the employer would treat the employee as a human being and pay him or her a fair wage. A fair wage is respectful in the sense that it indicates that the work is appreciated and valued. The College's failure to do this is in violation of the Code.
 
 

Over the past two decades, income inequality in the United States has increased massively. This jump owes to the unprecedentedly abysmal earnings experience of low-paid Americans, income stagnation covering about 80 percent of all families, and an increase in upper-end incomes. The United States has now cemented its traditional position as the leader in inequality among advanced countries. ⁽⁴⁾

Meanwhile, the income gap has widened as real wages for working people have declined. Average weekly wages adjusted for inflation for workers in 1998 were twelve percent below their level in 1973. Further, the inflation-adjusted net worth of the median American household fell from $54,600 in 1989 to $49,900 in 1997. ⁽⁶⁾

As real wages have declined the ranks of the working poor, one of the fastest growing segments of the poverty population, have swelled. The working poor are those Americans who work full time but still earn less than, or barely above, the poverty line. A Census report last fall found that the proportion of people living in poverty who were employed was at its highest in 20 years. The report found that 12.6 percent of poor adults worked full time in 1998--22% jump in a single year--and another 41 percent worked part time. ⁽⁷⁾ There are 19 million working families below or just above the federal poverty line. ⁽⁸⁾ In 1998, the number of full-time year-round workers with incomes below the poverty line rose by 459,000. ⁽⁹⁾

The numbers of the working poor have grown for a number of reasons. Welfare reform and de-industrialization factor into this problem, but the numbers have also risen due to the failure of the minimum wage to keep pace with inflation over the last 30 years. The real value of the minimum wage is twenty-seven percent less than it was in 1968. ⁽¹⁰⁾⁰

^{The declining wages have created many problems for American workers. As economist Juliette Schorr wrote, "Health, well-being and satisfaction appear to be heavily influenced by the ways in which economic resources, prestige and social position are distributed. In more unequal societies, human well-being and quality of life appear to be lower, for a variety of reasons." (11)  In simple terms, the structural violence of poverty has dire consequences for those who suffer through it.}

^{Since 1994, various cities have made commitments to pay their own employees a living wage, while making sure that private companies that received significant contracts or tax breaks from the city also pay their employees a living wage. These ordinances essentially say that taxpayers' money should not go to subsidize corporations that pay poverty wages. Robert Kuttner, an editor at The American Prospect wrote, "The living wage campaign, which dates only to 1993, is the most interesting (and under reported) grass-roots movement to emerge since the civil rights movement." (12)2 It is the premise of this paper that the college should pay all of its workers a fair wage. Our tuition dollars should not be used to keep people in poverty. If Earlham was to adopt a fair wage policy, it would be one of the first small liberal arts colleges nationwide to do so, establishing itself as a leader in the movement for social justice in the 21st century.}
 
 

^{The federal poverty line was developed in the mid-1960s during the "War on Poverty." The initial poverty line was based on an estimate that the average family spent one-third of its budget on food. An average food budget was devised that met minimal nutrition standards and it was multiplied by three to develop the poverty line, which has remained unchanged for the past 35 years except for inflationary adjustments.}

^{Some economists and progressive activists have begun to cast doubts on the reliability of the federal poverty line, pointing out that most Americans do not spend a third of their budgets on food. In response, the Census Bureau announced last year that it was devising a new more realistic method to measure poverty, the Experimental Poverty Measures. The new method would estimate how much the poor spend on food, clothing, housing and the other amenities of life. The new poverty estimate placed the poverty line at $19,500 for a family of four, a substantial increase from the $16,600 at present. This would be a living wage of $9.38/hour. By the new estimate 17 percent of the population or 46 million Americans would be officially classified as poor in this category, not the 12.7 percent currently. (13)3}

^{Arizona State University economist Dave Wells, a former Earlham professor, points to another flaw with the federal poverty line, namely its failure to adjust to cost of living variances in different communities. Wells recommends a rent-based measure for a living wage,}

^{calculated specifically for the individual community. Wells based his estimate on the Consumer Price Indices, which are surveys of how American consumers spend their money. The CPI 1991 U.S. city average indicated that Urban Wage and Clerical Workers spent an average of 25 percent of their after tax income on "rent of shelter" (excluding utilities). Wells found that the average rent in Richmond is roughly $400 a month. Wells estimates that in order to make that rent payment, workers should make a living wage of $9.00 an hour. (14)4}

^{Although the Wells figure is slightly lower than the Experimental Poverty Measure, it is an accurate reflection of the needs of Richmond residents. Thus, we believe that the living wage should be $9.00 an hour. No Earlham employee would earn below that figure.}
 
 

^{Our purpose is not to condemn Earlham's labor practices as an aberration from prevailing wage patterns in the surrounding area. In fact, Earlham's starting wages and benefits are comparable to other local non-profits and businesses. Data released from the Indiana Department of Workforce Development for calendar year 1999 revealed that Earlham's employee starting wages in the clerical and housekeeping staff areas were comparable to starting wages for other businesses in Region 9. Region 9 is composed of several Indiana counties, Wayne, Rush, Fayette, Union, Decatur, Franklin, Ripley, Dearborn, Ohio, Jefferson, and Switzerland. A local wage and benefits survey conducted last fall by Ted Bucaro, Earlham's Director of Human Resources and Financial Services, revealed that Earlham's wage and benefits package "appears competitive" with other non-profit organizations in Richmond, including: Indiana University East, Ivy Tech State College, City of Richmond, Dunn Mental Health Center, Reid Hospital, Richmond Community Schools, Scott Boys Club, YMCA, and YWCA. (15)5}

^{This data represents how wide spread low-wage work is in Richmond and the surrounding region. Earlham's competitiveness in the low-wage sector should not be taken as evidence that poverty wages are morally permissible. Earlham should take a leadership role in addressing the wealth disparity in America by agreeing to pay its employees a living wage, thereby setting an example for others to follow. And living wage employment is sorely needed in Richmond. According to the Wells Richmond Tax Abatement study, "the key economic development issue [in Richmond] was the creation of more living wage jobs for Richmond residents." (emphasis in original).}
 

^{Earlham Fair Wage Campaign Goals}

^{An Earlham fair wage policy would include these features:}

^{1) We agree to pay all our employees a fair wage.}

^{2) We agree to require all companies that have subcontracted work for the College to pay their employees a fair wage.}

^{3) We agree to encourage other businesses in Richmond to pay their employees a fair wage.}

^{We recommend the following steps toward achieving a fair wage policy at Earlham:}

^{a.     Employee Council. The Employee Council should be strengthened to allow employee representatives to have a voice in the distribution of hourly wages. The process should be done by consensus. The Council would then have the responsibility of eliminating the wage compression improprieties.}

^{b.     Investigative Committee. An investigative committee should be established to scrutinize the college's budget and find a practical, financially sound remedy for wage inequity at Earlham. This committee should work closely with the Budget and Welfare Committees, and involve staff, faculty, students, administrators, and Board members in its research and recommendations. The committee should issue a report in April in time for the community to respond and before the Board meeting in June.}

^{Economic inequality presents some difficult moral questions to our community. Do we abide by the Community Code only when it is financially expedient to do so? Do the principles of "peace and justice" and "respect for persons" remain aspirations or we take the opportunity to put the theory into practice? What kind of example does the College wish to set for its students? What does the contradiction between the theory of "respect for persons" and the reality of poverty wages say about us?}
 
 

^{2.
2.2A Reader in Peace Studies, glossary, eds. by Smoker, Paul; Davies, Ruth; Munske, Barbera. Oxford: Pergamon Press, 1990. p. 232.}

^3.
3.3Earlham College Student Handbook 1999-2000 p. 3.

^{4.
4.4Freeman, Richard Solving the New Inequality 1999. p. 3}

^{5. 5.5 Collins, Chuck; Leondar-Wright, Betsy; Sklar, Holly. "Shifting Fortunes: The Perils of the Growing American Wealth Gap." United for a Fair Economy: 1999. www.stw.org}

^{6.
6.6 ibid.}

^{7.
7.7Brownstein, Ronald. "Government Should Work Harder to Serve Legions of Working Poor." Washington Post Oct. 11, 1999.}

^{8.
8.8 Babington, Charles. "Clinton Pushes Tax Break for Working Poor." Washington Post January 13, 2000.}

^{9.
9.9Center for Budget and Policy Priorites, "Low Unemployment, Rising Wages Fuel Poverty Declines."}

^{http://www.cbpp.org/9-30-99pov.htm}

^{10.
1.10Collins, Chuck; Hartman, Chris; Sklar, Holly. "Divided Decade: Economic Disparity at the Century's Turn."}

^{http://www.stw.org/my_html/Divided.html}

^{11.
1.11Shifting Fortunes.}

^{12.
1.12Robert Kuttner, Op-Ed. The Washington Post, June 20, 1997.}

^{13. 1.13Uchitelle, Louis, "Devising New Math to Define Poverty." New York Times. Oct. 18, 1999.}

^{14.
1.14Wells, Dave. "Tax Abatement Study for City of Richmond," 1997.}

^{15.
1.15Bucaro, Ted. "Wage and Benefit Survey," Oct 26, 1999.}

 
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