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The numbers in the article don't work out. First of all, they were claiming that farm workers used to earn up to $1,400/week and now they are earning up to $1,
by II2II 3y ago
The numbers in the article don't work out.
First of all, they were claiming that farm workers used to earn up to $1,400/week and now they are earning up to $1,000/week. They were also claiming that they could work up to 70 hours per week in the past, and now they are limiting it to 48 hours per week. Oh yes, there was also the claim they could earn up to $30/hour.
- $1,400/week at 70 hours results in an hourly rate of $20/hour. Likewise, $1,400/week at $30/hour reflects 46.7 hours of work. Perhaps they mean take-home pay, but I've never heard of businesses discussing pay in that context. Perhaps the skilled workers ($30/hour) are working fewer hours than the lesser skilled workers who are being paid $20/hour. In that case, they are not working enough hours to earn overtime.
- Even if they had to start paying overtime, time-and-a-half only accounts for a 21.4% increase labor costs assuming everyone was working 70 hour work weeks, not 50% more as the article claims. Given the claim that labor costs contribute to half of the cost of production, we would expect the cost of the product to rise by about 11%.
Take my numbers with a grain of salt, because the numbers they are based upon (those cited in the article) are of unclear provenance. At best, the article's numbers are cherry picked and misleading. At worse, they are pulled out of a hat.