On Just Wages

COMPENDIUM

The wage system is that arrangement whereby men give their energy, or labor, and receive payment in money or wages in exchange, and so are enabled to live. It is maintained through the wage contract, whereby the worker and the employer agree and place themselves under a strict obligation, the former to give his strength and skill, the latter to give a return in value or wage, previously agreed upon. The Church admits the wage system as being in itself just, as the principles underlying it, e.g. the freedom of the agreement, the use of a man's services as distinct from his person, etc., are just. As Pope Leo XIII writes: "Labor is not a thing to be ashamed of, if we lend our ear to right reason and Christian philosophy, but is an honorable calling, enabling a man to sustain his life in a way upright and creditable." (Rerum Novarum, §20) And Pope Pius XI writes: "Those who hold that the wage contract is essentially unjust are certainly in error." (Quadragesimo Anno, §64) Injustice, however, may arise in the working of the system.

The Church teaches that all wage contracts must conform to the fundamental principles of natural justice and human dignity. Natural justice demands that a fair day's work deserves a fair day's wage. Work, however, may vary. Work that is done more efficiently, or requires educational preparation, or demands much skill, is entitled to a higher remuneration. The value of the work performed is to be estimated, not by that of workers alone, but by the common judgment of men; that is, by unbiased representatives of both classes. In general, equal must be rendered for equal. Respect for human dignity requires that a man's labor may not be sold or bought or bargained for like any other commodity or article. Pope Leo XIII writes: "It is shameful and inhuman to treat men like chattels to make money by, or look upon them merely as so much muscle or physical strength." (Rerum Novarum, §20)

The Church insists that all workers, in return for their labor, are entitled to a living wage. A living wage is a wage which will enable a well-conducted and thrifty workman to live in reasonable comfort. Hence, a living wage does not mean "just enough to keep alive on." Leo XIII writes: "Wages ought not to be insufficient to support a frugal and well-behaved wage-earner." (Rerum Novarum, §45) Pius XI writes: "Every effort must be made that fathers of families receive a wage sufficient to meet adequately normal domestic needs." (Quadragesimo Anno, §71) A living wage, therefore, means a wage sufficient to keep a man up to a standard of moderate comfort, or, in other words, a wage sufficient to support himself and his family in Christian decency. What size of family? An average family; that is, four or five children.

The Church insists on the worker receiving a living wage because his labor represents the only and necessary means whereby he is enabled to live. It must also be remembered that the responsibility for the rearing of his children falls upon the breadwinner, who furthermore has the duty of bringing them up in conditions of Christian decency and to supply their reasonable and frugal requirements; all of which is impossible unless he receives a living wage.

The duty of paying the living wage falls primarily on the employer; failing him, on the community itself. The first charge on industry is the support of those engaged in it, and the first duty of an employer is the payment of a fair wage. Hence, if an industry can afford to pay a living wage, the employer is bound to pay it. Beyond this, the whole community has a moral duty so to order its economic system that industry will be able to support those engaged in it. This duty rests not merely on the Government, but on all members of the community. It is therefore the duty of the community to remove those evils, such as, for example, unscrupulous competition, which make it impossible for an employer to pay a living wage.

When an industry can afford a living wage to the worker, the moral law of natural justice and the voice of Christian conscience should compel the employer to pay it. If he will not listen to that, then the trade organizations of workers may influence him. And, finally, the State, by legislation, may have to compel him, particularly when the workers are weak and unorganized and the employer remains obstinate in refusing.

If an industry or business, through no fault of the employer, cannot bear the strain of paying a living wage, the latter is not bound to pay a wage which the business cannot afford. Neither is he bound to pay a full wage to workers in preference to allowing himself a moderate recompense for his own work. But, having taken moderate recompense to cover his needs and those of his family, he may not set aside any further profit until he has paid his workers the just minimum rate of the living wage. Pope Pius XI writes: "Let employers and employed join in plans and efforts to overcome all difficulties and obstacles, and let them be aided in this wholesome endeavor by the wise measures of the public authority. ... In the last extreme, counsel must be taken whether the business can continue, or whether some other provision should be made for the workers." (Quadragesimo Anno, §73)

The Church admits that wages may vary, and that men are free to agree with employers regarding wages; but she teaches that there is a just minimum, below which wages may not fall without injustice. Pope Leo XIII writes: "Let the working man and the employer make free agreements, and in particular let them agree freely as to wages; nevertheless, there underlies a dictate of natural justice more imperious and ancient than any bargain between man and man, namely, that wages ought not to be insufficient to support a frugal and well-behaved wage-earner. If, through necessity or fear of a worse evil, the workman accepts harder conditions because an employer or contractor will afford him no better, he is made the victim of force and injustice." (Rerum Novarum, §45)

A just wage is to be estimated, not by applying one single principle, but by considering many things, particularly: (1) that which is required for the support of the working man and his family to live according to the normal level of decent living in the locality where they reside; (2) the condition or state of the business or industry, for "it would be unjust to demand excessive wages which a business cannot pay without ruin" (Pius XI, Quadragesimo Anno); and (3) the economic welfare of the whole community, for wages have a social aspect, and a rate of wages too low or too high causes unemployment, with its attendant evils. Union of effort and goodwill must endeavor to secure a scale of wages which will offer opportunities of work to the greatest possible number.

Besides paying a just wage, the employer is bound to provide proper working conditions; namely, sufficient rest, decent hours, and sanitary conditions. Rest from work is required in order that the worker may attend to the main purpose of life, i.e., his spiritual welfare, and that he may attend to his bodily needs, and renew his strength. Pope Leo XIII writes: "Neither justice nor humanity permit the exaction of so much work that the soul becomes deadened by excessive labor and the body succumbs to exhaustion." (Rerum Novarum, §42) The hours of labor should depend on the nature of the work and on his strength. Labor which is extremely arduous (e.g., in mining industries) should be compensated by shorter hours. The season of the year and the age and sex of the worker must also be taken into consideration.

There are undoubtedly abuses in the wage system as it is worked at present. Many workers do not receive a living wage, not even the just minimum, and "sweating" is practiced in every shape and form. "Sweating" may be described as taking advantage of the poorer and more helpless class of workers, and may take the form of (1) excessive hours of work, (2) insanitary working conditions, (3) unreasonable taxing of the worker's strength, (4) paying less to women simply because they are women, and (5) underpaying. The whole community must bear the responsibility for the manifest injustice of "sweated" labor, especially in a people supposed to be Christian and civilized. All forms of "sweated" labor have the underlying injustice of not paying a fair wage for the labor given. In practice, it is nothing less than oppression of the weak. It is defrauding laborers of their wages - a sin crying to heaven for vengeance. Pope Leo XIII writes: "To exercise pressure upon the indigent and the destitute for the sake of gain, and to gather one's profit out of the need of another, is condemned by all laws, human and divine." (Rerum Novarum, §20) The root cause of every form of "sweating" is that the labor is not remunerated according to its value. The only cure is the payment of at least a just minimum wage. Workers who labor under a "sweating" system must combine if possible, and organize to secure fair treatment. If they cannot combine, then it is the duty of the State to step in and enforce just payment, particularly in the case of women and child workers. Trade Boards or some such equivalent should be established for all "sweated" trades to ensure fair wages, decent hours, and sanitary work conditions.

The Church approves of labor unions, and defends the right and necessity of the workers to organize to secure their welfare. Pope Leo XIII writes: "We may lay it down as a general and lasting law that working men's associations should be so organized and governed as to furnish the best and most suitable means for attaining what is aimed at; that is to say, for helping each individual member to better his conditions to the utmost in body, mind, and property." (Rerum Novarum, §57) This right to organize, which for some time was denied and resisted by a section of the community, is now generally recognized, and will scarcely be called into question again. In an economic system in which conscience is silenced and moral principles of justice are unheeded, labor unions are necessary because they are the only means left whereby the workers can secure fair conditions of work and wages.

The Church teaches that workers have a natural and just right to strike, but the use of that right must be lawful. Men are free to give or withhold their labor. They are justified in withdrawing it when they suffer injustice or oppression in the conditions of their work. Nonetheless, many things have to be considered before a strike can be declared lawful. First, there must be a grave and just cause. A strike is made for some demand, but that demand must be reasonable. The advantage to be gained must be considered together with the loss and suffering to those entering the strike, their employers, the industry, and the country generally. Second, there must be hope for success; that is, there must be a chance of obtaining what is demanded. History shows that strikes do not always achieve their aim. Failure or even compromise may leave conditions worse than before for all concerned. Third, other satisfactory solutions must have been tried and failed. Fourth, justice and charity must be preserved. A just agreement may still be binding, and thus render a strike unlawful. A worker cannot violate an agreement which is still binding on him if (a) is was freely entered upon; (b) it is, moreover, just in all its clauses; and (c) it has been faithfully fulfilled by the employer. If such an agreement still remains binding, it is unjust to break it, and unlawful to strike. The justice of a sympathetic strike - that is, bodies of workers who, having no grievance of their own, cease working in order to lend their moral support to others - must be judged in the light of this principle. Finally, the rights of the public must be duly respected. A strike which violates the rights of the whole community cannot be lawful. Thus, a general sympathetic strike, embracing most of the workers of the country, is almost impossible without violating the rights of the public.

The Church, while admitting that men have a natural right to strike, discourages the use of the right, and urges that disputes be settled by other means more natural and satisfactory from every point of view. The strike is a weapon of industrial war. Like the wars of nations, it may have its justification. But, just as nations should endeavor to settle their disputes by wiser and more prudent methods, so also strikes ought to be forestalled by other means less harmful and dangerous. The strike foments class war, and is not infrequently attended by violence, disorder, and damage to trade and to the common welfare. Other means should be sought, such as, for example, conciliation, arbitration, or Trade Board agreements. It is the duty of the State, in the interests of the common good, to interfere when other means fail to secure a fair settlement.

The claims of social justice are not always satisfied by the payment of a just wage. The Church therefore advocates the modification of the wage system by some measure of profit-sharing; that is, industry ought to be so planned that the worker receives not merely a wage, but a share of surplus or net profits, i.e. what remains after all expenses have been paid. The Church does not state in detail what methods or measures are to be adopted; she is content to state the principle of profit-sharing. It is evident, however, that cooperation, co-partnership, and bonus systems are all in keeping with the principle laid down by the Church. The Church advises some form of profit-sharing as necessary for a wider and more just distribution of private property or ownership. God intended the earth and its wealth to minister to the needs of all. Wealth must be so distributed amongst the various individuals and classes of society that the common good of all be thereby promoted. By fair wages and by profit-sharing, the workers can save, increase their possessions, rise above a hand-to-mouth existence, and enjoy a nobler and fuller life that brings peace and contentment.

The Church condemns the claims of Capital to all the fruits of industry as unjust. Pope Pius XI writes: "This sacred law (of social justice) is violated by an irresponsible wealthy class who, in the excess of their good fortune, deem it a just state of things that they should receive everything and the laborer nothing." (Quadragesimo Anno, §57) A system cannot be for the common good which concentrates all wealth and power in the hands of a few, while it imposes on the working man "a yoke which is little better than that of slavery." (Leo XIII, Rerum Novarum)

The Church condemns as equally false and unjust the claims of Labor to all the fruits of industry. Pope Pius XI writes. "The law of social justice is violated also by a property-less wage-earning class, who demand for themselves all the fruits of production." (Quadragesimo Anno, §57) The principle behind this claim by Labor to all the products and profits is also condemned as false and immoral.

The Church teaches that production is the result of the efforts of Capital and Labor combined. Both have a right to a just share of profits. Pope Pius XI writes: "It is entirely false to ascribe the result of their combined efforts to either party alone, and it is flagrantly unjust that either should deny the efficacy of the other and seize all the product." And, further: "Each one must receive his due share, and the distribution of created goods must be brought into conformity with the demands of the common good and social justice." (Quadragesimo Anno, §58)

The Church advocates the re-establishment of vocational groups, corporations, or guilds, binding together owners, managers, and workers - all who are concerned in the same trade or profession. The economic and industrial system should be organized on the basis of function. There must be a return to the spirit which inspired and animated the craft guilds and trade guilds, namely that each live for all, and all for each. Such associations or corporations should be open to all, and should enjoy a measure of self-government. In the absence of such associations, virtually nothing exists between the individual and the State. Thus it is that the State becomes overburdened with an infinity of occupations which is cannot fulfill. Capital and Labor are indispensable to each other. As Pope Leo XIII writes: "Capital cannot do without Labor, nor Labor without Capital." (Rerum Novarum, §19) Since the interests of both are identical, common sense as well as Christian principles demand that they combine for the benefit of each and the good of all.

The aim of such associations, corporations, or guilds should be, first, to end class-war and establish Christian harmony among all classes. Class-war is condemned by Natural and Divine Law, particularly by the law of Christian charity. Harmony and combination must replace contention and strife. The root of class-antipathy and cause of class-war is selfishness, which Christianity strongly condemns. Second, such associations should aim to further the interests of the whole group, that is, (1) to root out evils which have crept into industry and trade, such as unregulated production, excessive competition, extortion, domination, and the abuse of power; (2) to apply Christian principles of justice and charity to all relations between individuals and various classes; and (3) to further not only material interests, but to safeguard and promote the spiritual and moral well-being of all concerned. Third, such associations should aim to promote the common good of the community. This must be kept in view, because the aim of all industry and trade should be human welfare.

CATECHISM

164. What is meant by the wage system?

The wage system is that arrangement whereby men give their energy, or labor, and receive payment in money or wages in exchange, and so are enabled to live.

165. How is the wage system maintained?

The wage system is maintained through the wage contract, whereby the worker and the employer agree and place themselves under a strict obligation, the former to give his strength and skill, the latter to give a return in value or wage, previously agreed upon.

166. Does the Church admit that the wage system is just?

The Church admits the wage system as being in itself just.

167. What does the Church teach regarding the morality of wage contracts?

The Church teaches that all wage contracts must conform to the fundamental principles of natural justice and human dignity.

168. What does the Church insist on with regard to remuneration for labor?

The Church insists that all workers, in return for their labor, are entitled to a living wage.

169. What is meant by a living wage?

A living wage is a wage which will enable a well-conducted and thrifty workman to live in reasonable comfort.

170. Why does the Church insist on the wage-earner receiving a living wage?

The Church insists on the worker receiving a living wage because his labor represents the only and necessary means whereby he is enabled to live.

171. Since the worker is entitled to a living wage, on whom falls the duty of supplying that living wage?

The duty of paying the living wage falls primarily on the employer; failing him, on the community itself.

172. What is there to compel an employer to pay a living wage if the industry can afford it?

There are three things to compel an employer to pay a living wage: the moral law and the voice of Christian conscience; trade organizations; and, if these fail, the State.

173. If an industry or business cannot bear the strain of paying a living wage, what is the employer bound to do?

Having taken moderate recompense to cover his needs, he must forgo any further profit until he has paid his workers the just minimum rate of the living wage.

174. Does the Church admit that wages may vary?

The Church admits that wages may vary, and that men are free to agree with employers regarding wages; but she teaches that there is a just minimum, below which wages may not fall without injustice.

175. How is a just wage to be estimated?

A just wage is to be estimated by considering what is required for the support of the working man and his family, the condition or state of the business or industry, and the economic welfare of the whole community.

176. Are the employer's obligations completely satisfied by the payment of a just wage?

No. Besides paying a just wage, the employer is bound to provide proper working conditions; namely, sufficient rest, decent hours, and sanitary conditions.

177. Are there abuses in the wage system as it is worked at present?

Undoubtedly. Many workers do not receive a living wage, not even the just minimum, and "sweating" is practiced in every shape and form.

178. Who are responsible for "sweated" labor?

The whole community must bear the responsibility for the manifest injustice of "sweated" labor, especially in a people supposed to be Christian and civilized.

179. What is the remedy for the evil of "sweated" labor?

The only adequate remedy for "sweated" labor is one which goes to the root of the evil: underpayment. The remedy, therefore, is the payment of a just wage.

180. Does the Church approve of labor unions?

Yes. The Church approves of labor unions, and defends the right and necessity of the workers to organize to secure their welfare.

181. Have workers a right to strike?

The Church teaches that workers have a natural and just right to strike, but the use of that right must be lawful.

182. When is a strike lawful?

A strike can only be lawfully invoked when there is a grave and just cause, when there is hope for success, and other satisfactory solutions have been tried and failed. It is also necessary that justice and charity be preserved, and the rights of the public duly respected, if the strike is to be lawfully invoked.

183. Does the Church recommend the use of strikes?

The Church, while admitting that men have a natural right to strike, discourages the use of the right, and urges that disputes be settled by other means more natural and satisfactory from every point of view.

184. Are the claims of social justice satisfied by the payment of a just wage?

Not always. The Church advocates the modification of the wage system by some measure of profit-sharing; that is, industry ought to be so planned that the worker receives not merely a wage, but a share of surplus or net profits.

185. Why does the Church advise some form of profit-sharing?

The Church advises some form of profit-sharing as necessary for a wider and more just distribution of private property or ownership.

186. What does the Church teach regarding the claims of Capital to all the fruits of industry?

The Church condemns the claims of Capital to all the fruits of industry as unjust.

187. What does the Church teach regarding the claims of Labor to all the fruits of industry?

The Church condemns as equally false and unjust the claims of Labor to all the fruits of industry.

188. What, precisely, does the Church teach regarding the respective rights of Capital and Labor in the matter of the product of industry?

The Church teaches that production is the result of the efforts of Capital and Labor combined. Both have a right to a just share of profits.

189. What recommendation does the Church put forward for the organization of industry?

The Church advocates the re-establishment of vocational groups, corporations or guilds, binding together owners, managers, and workers - all who are concerned in the same trade or profession.

190. What should be the aim of such associations, corporations, or guilds?

The aim of such associations should be to end class-war and establish Christian harmony among all classes, to further the interests of the whole group, and to promote the common good of the community.