In Case You Missed It: State Minimum Wage Hikes Lead To Millions In Job Losses

WFI

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
August 30, 2016                                                                                                  202-677-7060

IN CASE YOU MISSED IT
State Minimum Wage Hikes Lead To Millions In Job Losses

 

Heather Greenaway
August 30, 2016
Townhall

How many jobs in your state would be lost by a $15 minimum wage mandate?  Well, thanks to a study just out from The Heritage Foundation, we’ve now got a pretty good idea.  And the numbers are terrifying.

But that shouldn’t come as a surprise.  It’s a well-established fact that arbitrary minimum wage hikes are a jobs-killer – the country’s leading economists have admitted as much, as has the Congressional Budget Office (CBO).  Unfortunately, that hasn’t stopped states and localities across the nation, and progressive politicians in Washington, from pushing these policies.  Washington, D.C., New York, California and Seattle have all passed legislation increasing their minimum wage to $15 an hour, with more on the way.

So now to the numbers: Heritage’s study, conducted by research fellow in labor economics James Sherk, found that state minimum wage hikes would directly lead to the loss of nine million jobs across the country.  Nine million.  Let that sink in.

According to the study, the states that would be hit hardest include Texas, California and Florida.  Both Texas and California would lose more than 900,000 jobs, with Florida not far behind with 700,000 job losses.  New York, which passed their $15 wage law this year to phase in fully by the end of 2021, will likely lose over 400,000 full-time-equivalent positions.

Even in small states like West Virginia, where 52,000 jobs would disappear, the effects would be huge.  More than 37 percent of West Virginia’s wage and salaried workers would be detrimentally impacted.

If you think the ramifications would be negligible, think again. These drastic job losses would fundamentally alter these states’, and the nation’s, economies.  These policies won’t lift people out of poverty, they’ll put them there.

Arbitrary price floors don’t work in a free market and dangerous market manipulations will lead to a trove of unintended consequences.  From layoffs to reduced hours, to automated kiosks, outsourcing and a sharp increase in consumer prices, a $15 starting wage will have reverberations across all sectors of our economy.  And forget job growth.  In fact, policies like this will force the inequality gap to grow even larger.

Not to mention that misguided wage policies harm the very people they are intended to help.  They stifle the employment opportunities of less-skilled and less-experienced workers – the ones most likely to be working in a minimum wage job in the first place.  These types of “starting wages” jobs were designed to be entry level – not positions for life.  The fact is that these low-skilled and low-income workers will be hit very hard and many left without anywhere to go.

Unfortunately, Big Labor groups – who seek exemptions from these same policies – have hijacked this effort through the spread of myths and misinformation under the guise of “fair pay.”  But for them, this isn’t about a “living wage” or fighting for “income equality,” it’s about carving out a special section of the labor market where they can present themselves as the more affordable option.

A $15 minimum wage was once considered a fringe idea.  You can’t find many studies on the near-term effects of such a policy because economists never seriously considered it.  But this Heritage study fills that gap.  And should be shared far and wide.

To access the article, click here.

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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Workforce Fairness Celebrates National Employee Freedom Week

WFI

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
August 15, 2016                                                                                                  202-677-7060

Workforce Fairness Celebrates National Employee Freedom Week

Washington, D.C. – The Workforce Fairness Institute (WFI) today celebrated National Employee Freedom Week (NEFW).

The below statement was issued by WFI spokesperson Heather Greenaway:

“The Workforce Fairness Institute is proud to celebrate National Employee Freedom Week.  National Employee Freedom Week is a critical tool to educate workers about their individual rights in the workplace.  Far too often, employees feel coerced to join a union and aren’t informed that they have a choice in the matter.  This week is dedicated to empowering employees with the information they need to make their own decisions about unionization in the workplace and inform them of the alternative options at their disposal.”

The NEFW campaign will educate Americans about alternative professional organizations available to them outside of big labor unions.  These organizations can provide the same professional development and insurance benefits that unions provide at a fraction of the cost.

According to National Employee Freedom Week’s 2016 survey, more than two-thirds of union households – or 66.9 percent – believe workers should be able to negotiate directly with their employer and completely opt-out of union dues or agency fees.  And almost 30 percent of respondents said they would opt-out of union membership if it were possible to do so without penalties.  These survey results highlight how important the work undertaken by National Employee Freedom Week leadership is to educate workers and empower them with a choice.

National Employee Freedom Week is August 14-20, 2016.  To learn more, click here.

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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In Case You Missed It: Obama Labor Board’s Joint Employer Rule Negatively Impacts Small Businesses

WFI

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
August 8, 2016                                                                                                    202-677-7060

In Case You Missed It
Obama Labor Board’s Joint Employer Rule Negatively Impacts Small Businesses

Some Small-Business Owners Trim Expansion Plans, Cite New Labor Law
Change Also Could Pull Franchisers, Such As McDonald’s, Into Local Labor Disputes

Melanie Trottman
August 5, 2016
The Wall Street Journal

Small-business owners say they are shouldering higher costs and scaling back expansion plans because of a revised federal rule that gives employees more leverage in settling workplace grievances.

The new policy, intended to hold businesses accountable for labor-law violations against people whose working conditions they control but don’t claim as employees, was put in place last year through a ruling by the National Labor Relations Board, which referees workplace disputes and oversees union-organizing elections. The rule, expected to affect fast-food, construction and other industries reliant on contract workers and employees of franchisees, also aims to ensure workers can unionize and collectively bargain with businesses that help control their fates.

The policy broadens the circumstances in which two businesses can be counted as employers of the same group of workers, reversing the NLRB’s 30-year-old standard for determining such “joint-employer” status.

The agency is now beginning to rule on a body of test cases that could detail how the standard will apply, but some businesses—particularly those in the franchising industry—have started making decisions based on potential outcomes, underscoring how just the prospect of a regulatory change can impact U.S. workplaces.

The change could pull franchisers—ranging from big brand companies such as McDonald’s Corp. and Golden Corral Corp. to smaller operations—into labor disputes involving workers at their networks of independent owner-operators, or franchisees. The brand companies face the risk of having to pay back wages to workers fired for protesting low pay or trying to join a union; the companies also could be swept into collective-bargaining talks alongside store owners they say have total control over the workers at the stores.

Franchisees, meanwhile, say they could lose their independence to hire, fire and manage workers as they please. They are also concerned about becoming too independent: Some say their franchisers have scaled back worker training tools and other guidance, fearing regulators would view such involvement as joint-employer-like control.

Businesses say they are in a regulatory limbo because the new standard is vague about what constitutes control.

The previous test measured the direct control one business had over working conditions of people employed by another business. Now, even indirect control can count.

So far the impact seems to be largely on the franchisees. A home health-care business in Wisconsin is taking on $10,000 in annual recruiting costs because its franchiser stopped providing assistance to steer clear of regulators, and a small hotelier in Florida is abandoning expansion plans in small markets because one of its franchisers scaled back worker training it provides. A printing business owner in Washington state said he canceled plans to open an eighth store because he doesn’t want to risk the investment until it is clear his franchiser wouldn’t be considered a joint-employer.

“I could lose my ability to control my business,” said Chuck Stempler, an owner of the seven printing stores that operate under the AlphaGraphics brand in Washington and California.

Shelly Sun, co-founder of BrightStar Care, a Chicago-based franchiser that provides home health-care services through its network of more than 300 franchisees, used to help the businesses talk through employment problems, such as difficult employees. Now, “we refer them to a human resources attorney,” she said.

Her company also stopped paying to host an online system where franchisees could post job openings and screen applicants, Ms. Sun said.

BrightStar franchisees Susan Rather and her husband Jeffrey Tews have since established their own system for $10,000 a year. “That sort of thing will impact the bottom line,” said Ms. Rather, who together with her husband owns four BrightStar home-care locations in Southern Wisconsin.

To read The Wall Street Journal article in its entirety, click here.

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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Workforce Fairness Institute Launches Campaign Highlighting Union Hypocrisy & Unfair Worker Treatment At Democratic Convention

WFI

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
July 25, 2016                                                                                                      202-677-7060

Workforce Fairness Institute Launches Campaign Highlighting Union Hypocrisy & Unfair Worker Treatment At Democratic Convention

Effort Includes Geo-Targeted & Digital Advertising, Targeted Taxi & Hotel Advertising, & Mobile Bicycle Advertising

Washington, D.C. – The Workforce Fairness Institute (WFI) today announced that it is undertaking a digital and mobile advertising campaign during the Democratic National Convention to highlight union hypocrisy on the $15 minimum wage as they seek and receive exemptions in cities where it has been approved by lawmakers that target their own members.

Heather Greenaway, spokesperson for the WFI, issued the following statement:

“Big Labor has lied to the public and worse their own members about the minimum wage.  As they seek to have it raised at the municipal, state and federal levels, in backroom deals with politicians, they are carving out exemptions for rank and file with one purpose, facilitating the unionization of non-unionized workplaces.  With the national Democratic platform supporting a $15 minimum wage indexed to inflation, union bosses’ hypocrisy is on full display in Philadelphia and stands in stark contrast to the national party’s policy.  The Workforce Fairness Institute will not rest until the deceit perpetrated by organized labor is fully exposed both locally and nationally.”

BACKGROUND:

Anti-Union Ad Campaign Launches In Philadelphia Over Minimum-Wage Waivers

Reid J. Epstein
July 25, 2016
The Wall Street Journal

One big victory Bernie Sanders supporters won when the Democratic Party wrote its platform was including his call for a $15 minimum wage.

But this week in Philadelphia, Democratic delegates and other convention-goers will get a series of stark reminders that the union organizers who have been among the loudest advocates for a $15-per-hour wage floor have also sought carve-outs to allow companies to pay their own members less if they hire union workers, giving unions a key bargaining chip.

The Workforce Fairness Institute, which has for years fought union-backed legislation in Washington, is airing advertisements across the Democratic National Convention – targeted to mobile devices in and near the convention’s arena and conference center, delegate hotels and Philadelphia’s airport.

“Are big labor bosses giving you less than you bargained for?” the ad asks.

The institute’s ads will also air in local taxi cabs and on signs carried by bicycles being ridden near the convention on streets where vehicular traffic is banned this week.

The federal minimum wage is currently $7.25 per hour. Presumptive Democratic nominee Hillary Clinton has proposed raising it to $12 per hour, less than the $15 Mr. Sanders and union organizers have sought. Pennsylvania’s minimum wage is set to the federal wage floor, but Philadelphia municipal law requires paying workers at least $12 per hour.

Several municipalities – including Chicago, Los Angeles, San Francisco and Washington – have in recent years increased their minimum wage floors but allow exemptions to pay some unionized workers less.

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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Bipartisan Concern Grows Over Obama Labor Department’s Overtime Rule

WFI

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
July 18, 2016                                                                                                      202-677-7060

Bipartisan Concern Grows Over Obama Labor Department’s Overtime Rule
House Democrats Join Republicans In Efforts To Put Brakes On Burdensome Regulation

Washington, D.C. – The Workforce Fairness Institute (WFI) today reacted to news that Democrats in the U.S. House of Representatives have introduced legislation seeking to delay for three years the new overtime rule put in place by President Obama’s Department of Labor (DoL).  The news comes on the heels of the U.S. House Committee on Appropriations passing a funding bill which cuts off taxpayer dollars for this same, deeply flawed regulation.

Heather Greenaway, spokesperson for the WFI, issued the following statement:

“While we believe the Obama overtime rule must be completely stopped due to the damage it will inflict on American workers, House Democrats deserve credit for drawing attention to this important issue and seeking a delay for three years.  There are few issues today it seems where Republicans and Democrats agree, even marginally, and yet, here, in response to actions undertaken by a Labor Department intent on rewarding union bosses at the expense of employees and employers, consensus has emerged between both parties that something must be done.  We will continue to work with elected leaders irrespective of political persuasion to derail this giveaway to Big Labor which will further harm an economy that continues to struggle leaving hardworking American families behind.”

BACKGROUND:

POLITICO: “Four House Dems Attack Overtime Rule.” “Four House Democrats – Kurt Schrader of Oregon, Jim Cooper of Tennessee, Henry Cuellar of Texas and Collin Peterson of Minnesota – introduced legislation Thursday to delay by three years the Labor Department’s new overtime rule.” (Brian Mahoney, “Pence On Labor – Four House Dems Attack OT Rule – The Future Of The Persuader Rule,” POLITICO’s Morning Shift. 7/15/16)

  • “‘Since the DOL’s immediate phase-in date was announced, we’ve heard from business owners and their employees who are worried about implementing this increase overnight,’ Schrader said in a statement Thursday.” (Brian Mahoney, “Pence On Labor – Four House Dems Attack OT Rule – The Future Of The Persuader Rule,” POLITICO’s Morning Shift. 7/15/16)

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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WFI Issues Praise To U.S. House Appropriations Committee

WFI

 

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
July 15, 2016                                                                                                      202-677-7060

WFI Issues Praise To U.S. House Appropriations Committee
Full Committee Passes Subcommittee On Labor, Health And Human Services, Education, And Related Agencies Funding Bill

Washington, D.C. – The Workforce Fairness Institute (WFI) today commended the work of the U.S. House of Representatives Committee on Appropriations in passing the Subcommittee on Labor, Health and Human Services, Education, and Related Agencies’ fiscal year 2017 Labor, Health and Human Services funding bill.  The appropriations bill addresses burdensome and harmful actions undertaken by President Obama’s Department of Labor (DoL) and National Labor Relations Board (NLRB).

Heather Greenaway, spokesperson for the WFI, issued the following statement:

“America’s workers and small businesses have been the target of misguided pro-union policies that kill jobs and suppress growth for far too long.  Under President Obama, the Department of Labor and National Labor Relations Board have acted like little more than extensions of Big Labor, whose self-interest is not the nation’s interest.  In passing funding legislation that cuts off taxpayer dollars to damaging provisions such as the NLRB’s micro-union ruling and so-called Joint Employer Standard, as well as the Department of Labor’s deeply flawed overtime rule, the Congress has demonstrated the time for talking has ceased.  It is now time for the full U.S. House to pass this language and stand firm that employees and employers in our nation deserve better than the Obama Administration’s special interest giveaways.”

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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Democratic Party Platform Opposes Union Minimum Wage Exemptions

WFI

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
July 11, 2016                                                                                                        202-677-7060

Democratic Party Platform Opposes Union Minimum Wage Exemptions
In Calling For $15 Minimum Wage Indexed To Inflation, Big Labor’s Forced Unionization Scheme Repudiated

Washington, D.C. – Today, Heather Greenaway, spokesperson for the Workforce Fairness Institute, issued the following statement:

“With the Democratic Party platform including an amendment for increasing the minimum wage to $15 an hour in addition to indexing it to inflation, this serves as a repudiation of the campaign undertaken by union bosses to exempt their own members from the job-killing policy they are forcing on small businesses across the country,” said Greenaway.  “With this platform, Big Labor has lost all credibility as it campaigns for an increased minimum wage out of one side of its mouth, while then asking municipalities for exemptions for employers who organize in what can only be described as forced unionization.  It is time union bosses are exposed for the rampant hypocrisy and dishonestly they have exhibited on this issue, and we are fortunate the Democratic Party platform has provided exposure to this important issue.”

BACKGROUND:

Democratic Platform Embraces $15 An Hour Minimum Wage As Well As Indexing It:

“Democrats believe that the current minimum wage is a starvation wage and must be increased to a living wage.  No one who works full time should have to raise a family in poverty.  We believe that Americans should earn at least $15 an hour and have the right to form or join a union.  We applaud the approaches taken by states like New York and California.  We should raise and index the minimum wage, give all Americans the ability to join a union regardless of where they work, and create new ways for workers to have power in the economy.  We also support creating one fair wage for all workers by ending the sub-minimum wage for tipped workers and people with disabilities.” (“2016 Democratic Party Platform DRAFT July 1, 2016,” Page Seven, Accessed 7/11/16)

The Associated Press: “Sanders Scores Platform Victory, Calls For $15 Minimum Wage”:

“Bernie Sanders’ crusade to shape the Democratic party platform scored a win late Friday night, with the approval of an amendment calling for increasing the federal minimum wage to $15 over time … The meeting of the Democratic National Convention full Platform Committee began slowly in an Orlando hotel ballroom on Friday, but Sanders’ supporters were pleased when they approved an amendment to the platform backing raising the federal minimum wage to $15 per hour ‘over time,’ indexed to inflation.  The earlier draft did not explicitly call for the $15 federal minimum wage.” (Catherine Lucey & Ken Thomas, “Sanders Scores Platform Victory, Calls For $15 Minimum Wage,” The Associated Press, 7/9/16)

“Why Unions Exempt Themselves from Hard-Fought Minimum Wage Hikes”:

“Unions have been at the forefront of drives to raise the minimum wage to $10, $12, or $15 an hour.  Take Fight for $15, funded by the Service Employees International Union, demonstrations that occur regularly outside fast food outlets.   Or, take Black Friday demonstrations outside Walmart, organized annually the day after Thanksgiving by OUR Walmart, funded by the United Food and Commercial Workers.  But now that unions have achieved their goal in Los Angeles, their leaders want to exempt unionized workplaces from the minimum wage hike.  Reasonable people might think that unions’ battles to raise the minimum wage are motivated by concern for low-income Americans.  The union-funded Los Angeles campaign, Raise the Wage, stated, ‘Raise the minimum wage – and not just a little, but enough to bring the hundreds of thousands of Angelenos who power our economy into the middle class.  It’s good for business, it’s good for taxpayers, and, most of all, it’s the right thing to do for workers, who have earned it.’  The Los Angeles City Council was persuaded, and voted to increase the minimum wage in Los Angeles to $15 an hour.  Although the union-funded Raise the Wage campaigned so vociferously in favor of a $15.25 minimum wage, unions are seeking exemptions from the higher wages for their members.  The exemption, or escape clause, would allow them greater strength in organizing workplaces.  Unions can tell fast food chains, hotels, and hospitals that if they agree to union representation, their wage bill will be substantially lower.  That will persuade employers to allow the unions to move in.” (Diana Furchtgott-Roth, “Why Unions Exempt Themselves From Hard-Fought Minimum Wage Hikes,” Manhattan Institute, 5/28/15)

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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WFI Continues Praise For U.S. House Appropriations Committee

WFI

 

FOR IMMEDIATE RELEASE                                                CONTACT: Ryan Williams
July 8, 2016                                                                                                        202-677-7060

 

WFI Continues Praise For U.S. House Appropriations Committee

Subcommittee On Labor, Health And Human Services, Education, And Related Agencies Reins In Obama Labor Board & Department

 Washington, D.C. – The Workforce Fairness Institute applauded the voice vote taken yesterday in the U.S. House of Representatives Committee on Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies concerning the fiscal year 2017 Labor, Health and Human Services funding bill.  The appropriations bill prohibits damaging and burdensome actions undertaken by President Obama’s National Labor Relations Board (NLRB) and Department of Labor (DoL).

Heather Greenaway, spokesperson for the Workforce Fairness Institute, issued the following statement:

“We are very pleased to see language moving in the U.S. House that confronts job-killing regulations placed on American employers by the National Labor Relations Board and Department of Labor.  The action taken by the Appropriations Subcommittee is an important step toward putting in place a mechanism that stops the giveaway to union bosses on the part of this administration.  While there is more work to done, the recognition that provisions such as the Department of Labor’s egregious overtime rule and National Labor Relations Board’s so-called Joint Employer Standard, as well as its ruling allowing for micro-unions, require action by Congress, sends the right message to workers and businesses.  We once again urge the entire Committee on Appropriations and U.S. House to move swiftly to make law these critical spending measures.”

BACKGROUND:

House Appropriations Subcommittee On Labor, Health and Human Services, Education, And Related Agencies Marked Up Its Spending Bill. “A House Appropriations subcommittee marked up a bill Thursday that would rein in the Labor Department and National Labor Relations Board, the main federal labor law enforcement agency.” (Sean Higgins, “Labor Spending Bill Reins In Agency, Labor Board,” Washington Examiner, 7/7/16)

Bill Forbids “Expanding Corporate Liability Under The Joint Employer Rule.” “The bill prohibits the department from enforcing new rules on speeding up union elections, expanding corporate liability under the joint employer rule and expanding investment advisers’ fiduciary liability to their clients.” (Sean Higgins, “Labor Spending Bill Reins In Agency, Labor Board,” Washington Examiner, 7/7/16)

Legislation Also “Prohibits The Labor Board From Recognizing Unions That Do Not Represent All Members Of A Workplace.” “It also prohibits the labor board from recognizing unions that do not represent all members of a workplace, allowing workplace elections to be done online, or asserting jurisdiction over American Indian reservations.” (Sean Higgins, “Labor Spending Bill Reins In Agency, Labor Board,” Washington Examiner, 7/7/16)

Appropriations Committee Chairman Hal Rogers (R-KY) Said The “Bill Would ‘[Roll] Back Overregulation And Overreach By The Administration That Kills American Jobs…’” “House Appropriations Committee Chairman Hal Rogers, R-Ky., said the spending bill would ‘[roll] back overregulation and overreach by the administration that kills American jobs, and cutting spending to save hard-earned taxpayer dollars.’” (Sean Higgins, “Labor Spending Bill Reins In Agency, Labor Board,” Washington Examiner, 7/7/16)

  • Bill Passed The Subcommittee By A Voice Vote. “The proposed legislation passed the subcommittee by voice vote and is expected to go before the full committee next week.” (Sean Higgins, “Labor Spending Bill Reins In Agency, Labor Board,” Washington Examiner, 7/7/16)

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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