BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AJR 12
          Author:   Gatto (D)
          Amended:  8/15/13 in Assembly
          Vote:     21


           ASSEMBLY FLOOR  :  52-22, 8/19/13 - See last page for vote


           SUBJECT  :    Minimum wage

           SOURCE  :     Author


           DIGEST  :    This resolution memorializes the California  
          Legislature's request to the President of the United States  
          (U.S.) and the Trade Representative of the U.S. to include a  
          provision within future international treaties, trade  
          agreements, and other international protocols relating to the  
          raising of foreign minimum wages.  The resolution further calls  
          for the U.S. Senate to decline ratification of these agreements  
          should they fail to include such provisions. 

           ANALYSIS  :    This resolution makes the following legislative  
          findings:

          1.Unemployment remains too high in the U.S. and that one  
            significant cause is the "outsourcing" of quality trades,  
            manufacturing, and service industry jobs to nations where  
            workers are paid minuscule wages for their labor.

          2.In an age of "globalization" many American industries have  
            suffered due to competition from foreign employers who pay  
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            wages well below the U.S. federal minimum wage.

          3.A standardized international minimum wage would ensure that  
            American workers and firms compete on a "level playing field"  
            in the global market, raise the standard of living for  
            billions of people worldwide, and open new markets to American  
            exports.

          4.The U.S. has a long history of stimulating beneficial policies  
            abroad when negotiating treaties and trade agreements,  
            including, inter alia, demanding free elections, protecting  
            American patents, prohibiting nuclear testing, requiring  
            currency stabilization, and requiring environmental  
            safeguards, as a condition for peaceable relations, open  
            trade, and robust commerce with the U.S.

          This resolution memorializes the California Legislature's  
          request to the President of the U.S. and the Trade  
          Representative of the U.S. to include a provision within future  
          international treaties, trade agreements, and other  
          international protocols relating to the raising of foreign  
          minimum wages.  The resolution further calls for the U.S. Senate  
          to decline ratification of these agreements should they fail to  
          include such provisions.

           FISCAL EFFECT :    Fiscal Com.:  No

           SUPPORT  :   (Verified  8/21/13)

          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Federal of Teachers
          Worldwide Minimum Wage Project


           ARGUMENTS IN SUPPORT  :    According to the author's office, "Many  
          U.S. industries have struggled to compete with foreign employers  
          who pay wages well below what U.S. workers make.  As a result,  
          quality trades, manufacturing and service industry jobs have  
          been outsourced to nations where workers earn minuscule wages  
          for their labor, causing the U.S. economy to continue to suffer  
          from higher unemployment as companies cut costs to remain  
          competitive. 


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          "A standardized worldwide minimum wage would ensure U.S. workers  
          and businesses compete on a level playing field in the global  
          market.  A rising minimum wage would also benefit workers in  
          foreign countries by improving the standard of living for  
          billions of people around the world and opening new markets to  
          American exports. Reducing poverty would make developing  
          countries less reliant on U.S. foreign aid and able to create  
          more stable societies less prone towards wars or terrorism. 

          "The United States is in a unique position to affect global  
          policies by utilizing its treaty powers to require foreign  
          nations to stop exploiting low wages for competitive advantage.   
          Throughout its history, America has stimulated beneficial  
          policies abroad when negotiating treaties and trade agreements,  
          including calling for free elections, protecting U.S. patents  
          and requiring environmental safeguards. It is in this spirit  
          that this resolution hopes to follow - influencing the world  
          community to improve the quality of life for those less  
          fortunate than us."


           ASSEMBLY FLOOR  :  52-22, 8/19/13
          AYES:  Alejo, Ammiano, Atkins, Bloom, Bocanegra, Bonilla, Bonta,  
            Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier,  
            Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger  
            Hernández, Holden, Jones-Sawyer, Levine, Lowenthal, Medina,  
            Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea, Quirk,  
            Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Weber,  
            Wieckowski, Williams, Yamada, John A. Pérez
          NOES:  Achadjian, Allen, Bigelow, Chávez, Conway, Dahle,  
            Donnelly, Beth Gaines, Grove, Hagman, Harkey, Jones, Linder,  
            Logue, Maienschein, Mansoor, Morrell, Nestande, Patterson,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Gorell, Melendez, Olsen, V. Manuel Pérez,  
            Vacancy, Vacancy


          PQ:nl  8/21/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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