I came across this intriguing story out of Silicon Valley today:
SUNNYVALE (CBS SF) - Bloom Energy Corp. has been ordered by a U.S. District Court Judge to pay $31,922 in back wages and an equal amount in liquidated damages to employees from Mexico after the company was found to have willfully violated the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act.
Bloom, a manufacturer of solid oxide fuel cells, has been paying 14 workers brought to the United States from Chihuahua, Mexico less than $3 per hour for refurbishing work performed at the company headquarters in Sunnyvale.
According to a press release from the Labor Department, Bloom Energy brought the workers in from Mexico to refurbish power generators alongside U.S. workers. Federal investigators found that the workers were paid in Mexican pesos the equivalent of $2.66 per hour. The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked. California minimum wage is $8 per hour.
First off, any corporation or company guilty of knowingly breaking the law deserves whatever due punishment is prescribed by statute. Secondly, it appears that “progressive” and “green” businesses are just as susceptible to exploiting cheap labor from Mexico as any “Right-wing”-owned or supported company. I point this out purely because the association of any and all exploits found under our current “capitalistic” (term used loosely) system are always blamed on proponents of freer economic markets (and limited government). This perceived endorsement of perfidious behavior in the marketplace isn’t a minor point either. It is the rationale employed by many Americans – especially younger ones – to denounce, if not out-right reject, any association with free market capitalism.
Third, the minimum wage laws in this country are, on the whole, rubbish. Their real-world effects run in direction contradiction to the stream of well-intentioned hot air cascading forth from whichever bleeding-heart politician or community organizer happens to be singing their praises in front of a camera crew at the moment.
I’m not saying that the specific scenario detailed in the news report above is a pitch-perfect example of what’s wrong with labor laws in the United States, and I’m certainly not defending the actions of Bloom Energy. What I am saying is simply that the panic button and red-flashing light certain journalists, reporters and politicians want going off in the hearts and minds of the average American adult any time they hear about how few dollars/pesos other human beings are willing to work for need to be reigned in a bit. We must take a deep breath and decide to soberly investigate if something like the Minimum Wage Law has worked, is working, or can ever work.
Dr. Thomas Sowell (Hoover Institution) has a few thoughts on the subject:
Read more on Green Energy Exploits and the Minimum Wage…