The issue of minimum wage in Hawaii has been present since the development of its first sugar plantations, but the relatively recent increases in cost of living have created the disparity between a living wage and the minimum. The economy of Hawaii left its subsistence origins once developed countries (such as the United States and Great Britain) began taking an interest in its resources and looked to develop lucrative economy based on this. The interests of these early business people and companies did not include those of the worker. Hawaii had ideal growing conditions for sugar, and foreign companies quickly capitalized in the form of setting up a sugar plantation system.
The first sugar plantation was founded in 1835 on Kauai and for the next century the industry would dominate the economy of Hawaii. (2) Foreign interests had already acquired most of the ideal cane field land and were already in the process of obtaining cheap labor. (2)Supported by a strong demand abroad, more and more sugar plantations were created to keep up with the demand. As a result, the plantation owners grew extremely powerful as much of the common population, especially the increasing numbers of immigrants (mostly from Asia), worked in some way for the sugar industry. (1) The minimal government power or influence on the industry allowed companies to maximize profits by providing as little as possible for the workers. Wages for Asian immigrant workers forced their living conditions to extremely low levels, barely supporting, it at all, the migrant families. (1) Up until the annexation of Hawaii in 1898, the growing number of workers was subjected to the Masters and Servants Act (1850), a law which bound laborers to their duties and lack of benefits until their contract was fulfilled. This law helped prevent the development of labor organizations. (1) Improvements to the low wages were generally won as a “the result of a series of sporadic strikes organized along racial lines.” (2) Though wages improved, no official unions were able to form until 1935 and the New Deal’s Wagner Act.
Though Hawaii became a US territory in 1898, the Big Five sugar companies (Castle & Cooke, Alexander & Baldwin, C. Brewer & Co., Amfac and Theo H. Davies & Co.) that had developed still held the power over Hawaii’s economy and therefore its wages. Roosevelt’s new deal instigated the minimum wage law (Federal Labor Standards Act) and protected the rights of workers to unionize. (3) This government upheaval allowed workers to demand higher wages and garner benefits from unions without fear of losing their jobs. The labor climate would improve but the minimum wage of the islands would drastically lag behind that of the west coast, which had similar costs of living. Statehood would bring another victory for laborers, as well as a curse. Hawaii now had to fully comply with FLSA and therefore the Hawaii minimum wage met up with the federal one. (3) However, jet travel to the state sharply increased and tourist, retail and construction industries would slowly replace sugar. (2) This also led to a sharp increase in population, much of which was attracted to the new industries. The demand for land, and commodities from the mainland among the higher population, spiked the cost of living. The state minimum wage surpassed that of the federal to compensate, but it has generally lagged behind the high costs of living, leading to the current issue.
1. Beechert, Edward. Working in Hawaii: A Labor History. 1985. University of Hawaii Press
2. Hawaii Labor History. http://clear.uhwo.hawaii.edu/Lhistory.html. University of Hawaii.
3. A Short History of the Minimum Wage. http://www.hawaii.gov/labor/rs/6-14-05update/MIN_WAGE.HTM
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