Comparable Worth is Back
Furchtgott-Roth, Diana
f~five months before the November and ultra-liberals Tom Harkin Kennedy are holding court in sen Senate Office Building. :an Chairman Jim Jeffords politely. No, this isn't a pep an improbable...
...But since firms would be required to construct their own job equivalence systems, there would not necessarily be any consistency between wages for the same occupation in different finns...
...The Fair Pay Act would extend protection to such femaledominated job classifications as administrative assistants, telephone operators, and nurses...
...It comes with a plastic " t r i p o d " for extended observations at 15x or 30x magnifications...
...The 73-cent figure is bogus...
...Since the Fair Pay Act specifically prohibits firms from reducing the The American Spectator _9 S ep t e m b e r 2 o o o 39 wages of any employee to comply with anti-discrimination provisions, firms would find their wage bills continually rising...
...Studies show that when differences in education, years in the workplace, and number of children are taken into account, the notorious aT-cent pay gap diminishes to 5 or lo cents...
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...The House version of Harkin's bill is co-sponsored by Connie Morella, who often votes with the Democrats and is the only Republican officially behind either bill...
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...She accused then-Chairman Clarence Pendleton of driving a nail into the coffin of comparable worth by calling it "the looniest idea since Loony Tunes...
...You may have tried pouring poison ~ - ' - ~ " "? down their holes or getting rid . . . . ~, r, - of them with oth...
...Rather than compare average annual wages, they could look at women's average hourly earnings...
...Some states, including Minnesota and Iowa, introduced a form of comparable worth for state employees...
...Eighty percent of women bear children, and many choose flexible, lower-paying careers that will not penalize them for taking time from work to stay at home...
...Vice President A1 Gore told the AFL-CIO in 1997, "We're going to send a message to companies that want to do business with the federal government: How you treat employees and how you treat unions counts with us...
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...Canadian employees working for other branches of the federal government, such as the Canada Customs and Revenue Agency and the National Research Council, were not covered by the settlement and are now preparing their own "pay equity" suits...
...A National Science Foundation study based on a sample of 1. 5 million engineers claims that women engineers' salaries are 97 percent of men's...
...Democratic witnesses also outnumbered Republican...
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...For example, let's say that in the oil industry female administrative assistants are paid less than male oil drillers, and at telephone companies female operators are paid less than male technicians...
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...The EEOC could require that its administrative assistants be paid the same as the oil drillers...
...He says "it's about time we do it here," and calls for passage of the Fair Pay Act, of which he is sponsor...
...Or they will go out of business...
...By contrast, five Democratic senators--Harkin, Kennedy, Paul Wellstone, Patty Murray, and Jack Reed--attended...
...In his words: "The regulation effectively creates a blacklist to shut out those contractors the administration and organized labor want to punish...
...In the bill's own words, "The term 'equivalent jobs' means jobs that may be dissimilar, but whose requirements are equivalent, when viewed as a composite of skills, effort, responsibility, and working conditions...
...The Fair Pay Act is not a perfect bill, but a good step forward...
...In the first two years the law would require all employers with more than 2 5 workers to comply...
...Indeed, pay equity is already a catch phrase among Democrats, who invoked it throughout the hearing...
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...Both opposed the report, and Anderson said that he aligned hhnselfwith the 1984 position of the Civil Rights Commission, which voted to reject comparable worth...
...In a letter to the Ottawa Citizen on May 5, twenty secretaries protested that they were not awarded as much as clerical workers: "We agree wholeheartedly that senior secretaries have been left out in the cold and have been treated unfairly in the pay equity agreement...
...The guidelines are described as "voluntary," but standards that are voluntary one year can become mandatory over time, whether through executive orders or judicial rulings...
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...But the trade-offfor greater flexibility and more valuable benefits is often lower monetary compensation, whether for men or women...
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...Hourly numbers aren't cited, perhaps because they would not inspire sufficient political pressure for government-mandated comparable worth...
...When wages are set through a nonmarket system of value, some people will be paid more and some less relative to current wages...
...The argument that women are discouraged from majoring in math-related fields neglects women's massive entry into other previously male-dominated areas such as law, dentistry, medicine, biology, and business...
...Hence there are far more working men in the 50 to 65 age group than there are women at the peak of their professions...
...Commission on Civil Rights will hold a briefing on comparable worth...
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...The Soviet Union paid most workers the same, and look what happened to its economy...
...Canadian flight attendants are suing on the grounds that they are paid less than male-dominated ground and flight crews...
...On September 15, the U.S...
...The report's slant provoked a heated exchange between Republican and Democratic commissioners at a July ~1 public meeting of the Civil Rights Commission...
...No academic study holds that equally qualified women make 73 cents on the dollar...
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...When half of our workers in America are undervalued and consistently short-changed in their compensation, their families suffer...
...We are d i r e c t i m p o r t e r s of t h i s e x c e l l e n t instrument...
...Though ostensibly an evaluation of the EEOC's progress, the report will recommend that Congress pass the Fair Pay Act or the Paycheck Fairness Act in order to give the EEOC an enhanced mechanism to enforce anti-discrimination laws...
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...By law, emplwers are not allowed to discriminate on the basis of sex, race, or national orig!n against workers in one particular job...
...Senator Harkin is grilling Anita Hattiangadi of the free-marketoriented Employment Policy Foundation about comparable worth...
...After all, who could be against equity...
...In a letter to Chairman Jeffords distributed at the hearing, Judith Lichtman, president of the National Partnership for Women and Families, wrote that in 1998 , the wage gap "was smaller, but still intolerable at 73 cents for year-round, full-time workers...
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...Since "pay equity" applies only to workers within the same company, airlines are arguing that ground and flight crews are part of another "establishment" because they are subject to different bargaining units and contacts...
...It may seem unfair that Madonna, a very successful woman-owned business, gets paid more than your local high school math teacher, but there's not much we can do to change that...
...On September 30, the commission will issue its major report for fiscal zooo, entitled Overcoming the Past, Forecasting the Future: An Assessment of the Equal Emfloyment O##ortunity Commission's Enforcement Efforts...
...So firms would have to redo their comparableworth systems every year to maintain wage balance...
...It's not hard to imagine companies that face "pay equity" claims choosing to settle in order to keep their federal contracts...
...Another twist, and you have a choice of magnifiers and loupes: 5x, 10x, and 15x powers...
...Most Americans can't imagine that the federal government would set wages for individual workers...
...For wholesale o r d e r s , c a l l Chris Simpson at t h a t same number...
...7o2) and the Paycheck Fairness Act (S...
...Mindful of such criticisms, supporters of comparable worth are repackaging it these days as "pay equity...
...DIANA FURCHTGOTr-ROTH is a resident fellow at the American Enterprise Institute and coauthor of The Feminist Dilemma: When Success Is Not Enough, forthcoming from the AEI Press...
...It will be based on materials the commission used in reaching its 1984 decision, as well as updated articles, and will include a presentation by experts...
...No, this isn't a pep an improbable Democratic afthe Senate...
...But in an election year, with record budget surpluses, politicians are inclined simply to distribute benefits to interest groups without considering costs or whether the programs do more harm than good, With hearings sympathetic to comparable worth taking place in a Republican Congress, it remains an open question how much harm comparable worth will ultimately do...
...Even an initial complaint issued by a federal board or commission--potentially years before a final adjudicatory decision is made--could result in the denial of a federal contract...
...Every- "25x30" which means thing will appear twenty-five 25x magnification and the great light gathering times larger than it would to the capacity of a 30-ram objeenaked eye...
...Under the Fair Pay Act the EEOC could rule that these pairs have to be paid the same...
...Native health-care workers have just won a $45 million settlement...
...Needless to say, the Fair Pay Act would impose highly subjective, arbitrary standards...
...I "[~olk wis. I . dam has it ~" that it's seldom wise to fix what isn't broken and to attempt to improve on perfection...
...In fact, aside from Jeffords and Collins, no other Republican senator bothered to show up...
...Women earn over half of high school diplomas, 55 percent of all B.A.'S and M.A.'s, half of medical degrees, and 4 ~ percent of law and business degrees...
...As for those jobs for which employers are ordered to pay less, they too will disappear because fewer people will want to take them...
...Chairman Berry then ordered staffto prepare a briefing on comparable worth for the September 15 meeting...
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...74) and urge you to support these two bills and work towards their passage...
...There are major variations between men and women in education, job seniority and time in a job, and choice of jobs...
...University of Michigan economists Charles Brown and Mary Corcoran found that women college graduates earn 94 percent of men's earnings...
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...It's the next best east for the Democrats: a hearSenate Committee on Health, m, Labor and Pensions on ing comparable worth--fed,~ and salary controls regulatnuch employers must pay each . . . . . . . . . _l female worker...
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...However, it has never been required for private employers...
...HMOs often refuse to take Medicare patients, and health plans have dropped 75o,ooo Medicare beneficiaries from their rolls since 1998, according to the American Association of Health Plans...
...Normally when a minority senator goes after a majority witness, the chairman or another Republican senator will come to his defense...
...It defines discrimination as paying different wages for "equivalent" jobs that are dominated by employees of a particular sex or racial group...
...hese] requirements...for each such job, with the goal of eliminating unfair pay disparities between occupations traditionally dominated by men or women...
...Time spent in the workforee also affects average wages through job seniority, leading to a greater number of highly paid men than highly paid women...
...These were 84 percent of men's in 1999, up from 82 percent in 1998...
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...The idea that workers could be paid according to some concept of worth separate from the laws of supply and demand was first discussed in the U...
...Earlier this year the National Organization for Women, the largest feminist advocacy group for comparable worth, asked members to write to senators urging support of Harkin's Fair Pay Act...
...Russell Redenbaugh, one of two Republican commissioners, expressed concern that the report supports legislation that overturns the notion of the market as the arbiter of prices and wages...
...Many women choose to be teachers, nurses, and librarians for this very reason...
...Carl Anderson, the other Republican commissioner, deplored the "backdooring of comparable worth," saying that the commission had every right to take a position on legislative matters, but that it should do so "up front...
...He also questioned whether the commission, as an independent agency, was allowed to support legislation...
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...In her view, comparable worth demeans women because "it conveys the message that women cannot compete in nontraditional jobs and can only be helped through the patronage of a job evaluator...
...But even if they don't go on record to support comparable worth, Republicans are wary of taking a strong stand against it...
...age-old problem...
...The 23o,ooo mostly female federal workers employed by the Canadian Treasury Board are due to receive $30,000 (Canadian) each, at a cost of about $3.6 billion, or $2oo per Canadian taxpayer...
...Cornell University's Francine Blau found that women made 88 cents on the dollar, without even accounting for age, number of children, and well-defined job categories...
...The Fair Pay Act's little sibling, the Paycheck Fairness Act, proposes that the Department of Labor set voluntary wage guidelines for employers: "The guidelines...shall be designed to enable employers voluntarily to compare wages paid for different jobs to determine if the pay scales involved adequately and fairly reflect...
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...Facing a tough re-election in left-leaning Vermont, Chairman Jeffords went right along, giving a spotlight to representatives from the administration a s well as from three groups-the Institute for Women's Policy Research, the National Women's Law Center, and Business and Professional Women/USA-- noted for advocating special benefits for women...
...As Gail Shaffer, CEO of Business and Professional Women/USA, testified at the Harkin hearing, "The issue before us is one of essential fairness...
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...Here the assistants' pay would be compared to that of the garbage collectors, who probably earn less than oil drillers...
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...We strongly support the Fair Pay Act (S...
...Adding a plebeian touch of his own, Kennedy complained that his wife was discriminated against because law-firm colleagues didn't invite her to play golf...
...Our unemployment rate now stands at 4 percent, and no country exceeds the U.S...
...Or they will replace workers with machines, just as bluecollar jobs are being replaced all over the U.S...
...ms ~ - - ~ Nothing really works...
...The advantage of requiring firms to construct their own equivalence systems is that it shields comparable worth from the appearance of Soviet-style planning...
...It's not by chance that the U.S...
...The wage gap remains evident in every profession, regardless of education level or years in the workforce...
...thereafter, it would affect all businesses with more than 15 workers...
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...Publications ranging from Working Woman magazine to the Wall Street Journal feature discussions of how to find family-friendly jobs, gen42 S ep t e m b e r 2 o o o _9 The American Spectator erally meaning jobs with flexible hours and on-site daycare...
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...But another firm, such as a politically favored recycling plant, might employ administrative assistants and garbage collectors...
...In effect, the EEOC would end up requiring different companies to pay different salaries for the same occupation...
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...They argue that women are being forced into lower-paying occupations and are underpaid by z 7 cents on the dollar...
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...Anderson later said: "Everyone knows where the commission is heading" on comparable worth...
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...In 1999 courts ordered the Canadian government to pay billions in back pay to underpaid federal workers to settle "pay equity" suits...
...Moreover, there would be ample scope for the EEOC to selectively target firms for political reasons, leading to extortion and behind4he-scenes deal-making...
...Tom Daschle's Paycheck Fairness Act, which proposes voluntary wage guidelines...
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...The year 1978 was the first to see more than half of women in the workforce...
...Instead, more women than men favor such subjects as English literature and public administration, which offer few job prospects...
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...However revealing, hourly wage numbers don't explain other important differences between men and women that contribute to the wage gap irrespective of any discrimination or unfairness...
...The Clinton administration has also proposed new regulations, published in the Federal Register on June 30, that would make it easier to punish firms for pay equity infractions through denial or withdrawal of federal contracts...
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...A quarter of working women choose parttime hours, further slowing down their path to the top...
...Neither the chairman nor Maine's Susan Collins, who made a brief appearance, seriously criticized comparable worth...
...As she noted, employment declined in Iowa and Washington state after "pay equity" was put into effect...
...Despite telling Jeffords's committee that comparable worth can increase women's wages without causing any ill-effects in the private sector, she testified in her written statement that comparable worth has reduced job growth...
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...In other words, federal bureaucrats would decide which jobs are underpaid and would require employers to raise those wages...
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...If employers are told to pay more for certain jobs, they will move them to Latin America or Asia, where wages are lower...
...And despite what Mary Frances Berry might think, comparable worth is wreaking havoc in Canada...
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...The Fair Pay Act would require employers to compensate workers according to an artificial calculation of a job's "value" rather than on what anyone is willing to pay...
...It has perfect heft and feel and, of course, just like its predecessor, it writes like a dream...
...Blind to all evidence, feminist groups continue to exaggerate the wage gap to justify comparable worth and additional government interference in employer decisions...
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...Erica Groshen of the New York Federal Reserve, taking all the above differences into account, concluded that women earn 99 percent of men's salaries...
...Finally, as former CBO Director O'Neill testified, "The most important factors in the pay gap stem from deeply rooted differences in the roles assumed by men and women in the family...
...Even Heidi Hartmann, director of the Institute for Women's Policy Research and a leading advocate of comparable worth, can't make up her mind about the effects of comparable worth on employment...
...They can barely see, but their hearing is fine-tuned...
...To help determine which jobs are indeed equivalent, employers would be required to set up an internal system to keep track of equivalence within their firm...
...Feminists torture the numbers to make the wage gap seem larger-when it's actually getting smaller...
...Say an oil company falls into political disfavor because of high gasoline prices...
...Afterward, commission Chairman Mary Frances Berry exploded, saying that "the most dastardly thing the commission did was to kill comparable worth" in the 198o's...
...in levels of per person GDP...
...Members were told that "the time is now for passage of a strong pay equity bill, preferably the Fair Pay Act that would prohibit employers from paying lower wages to women working at jobs held predominantly by women than they would pay men...
...These groups are especially keen on Harkin's Fair Pay Act because it mandates wage controls...
...Harkin vociferously challenged anyone who criticized his bill...
...Harkin and Kennedy alike ignore testimony from one of the leading academic experts on women's wages, former Congressional Budget Office Director June O'Neill...
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...This sounds convoluted because it is: Employers would have to pay the same wage for jobs in male- and female-dominated occupations if someone in the EEOC judged these jobs to be equivalent...
...ulation (FAR) Council set a public deadline of August 29 for submitring comments on the regulation...
...The Clinton administration is doing its part...
...Commission on Civil Rights report, due out in September, i will portray "pay equity" as the new civil rights goal for women...
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...Another problem is that occupations often don't stay male- or female-dominated as employees get promotions or change jobs...
...Although many would like to see the moral value of jobs reflected in salaries, doing so would impair our economic system by requiring employers to pay too much for some iobs and too little for others...
...Thus the performance of Jeffords's committee...
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...The pittance that SCY-o3s are receiving in pay equity (a little over $8,300 with interest) is an insult compared to the amount awarded to their clerical counterparts (CR-o4s) who will be receiving close to $48,000 with interest...
...In practice, however, the system is designed to collapse and be replaced with an EEOC national standard, because there would be so much litigation over wages that firms would request a national standard to avoid legal fees...
...To justify the Fair Pay Act, feminist groups point to a Department of Labor statistic that full-time working women, on average, earn 73 percent of what men do...
...In fact, she argued, Canada has a comparableworth system, and it works fine...
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...Hourly wages are a better comparative measure, because women employed full-time work 9 z percent of the hours men do--one reason for the lower annual wage figures...
...Proponents could argue that they are not imposing wages on firms, but merely ensuring that firms treat workers iustly...
...as a serious policy in the early 198o's...
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...38 September 2000 _9 The American Spectator In an election year, meanwhile, no Republican wants to be seen as insensitive on women's issues...
...In the end, wage controls worked no better in Washington than in Moscow or Paris...
...When Carl Anderson suggested that a reconsideration of comparable worth not be hastily decided, fellow Commissioner Christopher Edley accused him of being dilatory, and said that it was necessary to come to a substantive discussion without delay...
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...Nonetheless, this growing attention to comparable worth and pay equity suggests how easily some version could become law if A1 Gore were elected president and the Democrats won back Congress...
...Berry said that she intends to propose proceedings to take a new look at comparable worth, and that she is not going to leave the commission without rectifying the injustice that was done in 1984...
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...In her view, it's unfair for nurses to make less than janitors--she later added that it's unfair for nurses to make less than engineers...
...The mere mention of "wage and price controls" evokes images of the high inflation and unemployment rates and long gasoline lines of the 197o's...
...It's a warm, fuzzy concept, designed to lure working women with the promise of potential raises and to discourage political Opposition...
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Vol. 33 • September 2000 • No. 7
