BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AJR 12| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AJR 12 Page 2 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. CONTINUED AJR 12 Page 3 "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 **** END **** CONTINUED AJR 12 Page 4 CONTINUED