Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘McDonalds’

2020 hopefuls are joining striking fast food workers Thursday — but who’s helping whom?

Thursday, May 23rd, 2019

McDonald’s workers are striking Thursday in a dozen cities across the country.

The latest walkouts in the nearly six-year-old campaign for union rights and sustainable wages, timed to overlap with the fast food giant’s annual shareholder meeting in Dallas, will also feature a number of 2020 White House hopefuls.

Former congressman and Housing and Urban Development head Julián Castro (D-TX) will join striking workers in Durham, North Carolina, alongside Moral Mondays leader Rev. William Barber II. Sen. Bernie Sanders (I-VT) will video conference in to the Dallas worker rally and take questions from the crowd.

Washington Gov. Jay Inslee (D) and New York Mayor Bill de Blasio (D) will attend walkouts in Chicago and Des Moines, Iowa, respectively. Sen. Cory Booker (D-NJ) had previously planned to attend the Des Moines rally but had to switch things up after a Senate vote on federal disaster relief was scheduled for Thursday at the last minute.

The presidential contenders will likely create an additional media draw in those four cities. But the workers themselves will be their own headliner in nine others, including Miami, Orlando, and Tampa, as well as Milwaukee.

These White House hopefuls are arguably more in need of being seen with these workers than the low-wage toilers require these politicos’ imprimatur. Since 2013, when the first impromptu walkout in New York broke open an organizing terrain that traditional labor organizers had long regarded as impossible, the Fight for $15 has been a persistent and mounting force in U.S. politics.

And as those strikes spread nationwide, to dozens and eventually hundreds of cities and towns across the United States, the energy present among the fast food and retail workers also broke through longstanding roadblocks on minimum wage laws.

Prior to Fight For $15 bringing new electricity to the scene, statutory pay floors had stagnated and fallen far behind inflation for decades around the country. In the spring of 2014, minimum wage advocates in Seattle, aided by the combined pressure of workers in the streets working from the outside and newly elected socialist firebrand Kshama Sawant making the case from her city council perch, finally reached a breakthrough. Seattle became the first municipality to set its pay floor at $15 an hour in the United States.

Numerous cities and states have followed suit since. And the $15 minimum wage question haunted the 2016 presidential election. During that season’s Democratic primary, former Secretary of State Hillary Clinton’s initial insistence that $12-per-hour was better policy eventually gave way to her embrace of the $15 demand.

If anyone still wanted to dispute the worker-led movement’s political gravity after that dramatic moment in the 2016 primary season, a little-noticed development this spring should have put such skepticism to bed for good. McDonald’s itself dropped its opposition to the campaign’s demands and withdrew its support for the National Restaurant Association’s long-running lobbying campaign against wage hikes and workers’ rights for the fast food industry.

The acquiescence of the industry’s leading burger chain has by no means ended the firm’s manifold conflicts with workers. McDonald’s workers have continued to file sexual harassment suits against the corporation, aided in recent months by the TIME’S UP Legal Defense Fund and the American Civil Liberties Union — as well as by 2020 hopeful Sen. Elizabeth Warren (D-MA), who blasted out a profile of their efforts to her massive social media following Tuesday.

The chain’s workers have also brought attention to the violence employees routinely face from customers along with, they contend, the dismissive, not-my-problem response they frequently get from management when they attempt to raise their concerns internally.

It is telling that White House hopefuls from all tiers of the primary — heavy hitters and long shots alike — are looking to associate themselves directly with the workers who are bearing the risks and costs of a union drive their employers oppose. The continued success of this largely grassroots movement will likely continue to command influence over the Democratic primary long after Thursday’s rallies and walkouts.

Labor energy has traditionally fueled the retail politicking of Democrats, of course. When former Vice President Joe Biden (D) joined a Stop & Shop workers’ rally during their recent and ultimately successful 11-day strike, the political media barely batted an eye. This is just what’s expected of those who would bear the party’s banner.

But there are signs that the relationship between elected Democrats and rank-and-file labor is shifting. Sanders’ campaign recently harnessed its digital subscriber list in the service of encouraging supporters to show up for workers at picket lines and rallies. As ThinkProgress previously detailed, his presidential campaign will be the first run by a unionized staff.

Lower-profile unionization drives in other industries have drawn mass attention from the energetic online left and, in turn, from Democratic politicians working to figure out how to wed that vocal cohort to the party’s traditionally moderate wing. And the AFL-CIO, long one of the most significant power brokers outside the party’s official infrastructure, is embroiled in internal disputes about how it apportions resources between organizing workers and influencing elections. It remains to be seen how that turmoil will affect the party’s own ability to rely on the AFL to turn out members at campaign events and on polling days, and broker connections between office-seekers and working stiffs.

The Fight for $15 folks, meanwhile, have remained a mainstay in the broad panoply of labor activists since their first-ever national convention in Richmond, Virginia, three years ago. The emotion and excitement that has long attended the campaign’s activism — coupled with the moral and rhetorical leadership of Rev. Barber and his fellow clergymen — make the movement an attractive force with which to form an allegiance. With several Democratic primary hopefuls beating an early path to their picket lines, it seems likely many more will show up in the months to come.

This article was originally published at Think Progress on May 15, 2019. Reprinted with permission. 

About the Author: Alan Pyke  covers poverty and the social safety net. Alan is also a film and music critic for fun. Send him tips at: apyke@thinkprogress.org or

McDonald’s Retreat on Fighting Wage Increases Shows the Tide Is Turning

Thursday, April 11th, 2019

In March, the McDonald’s Corporation announced that it would no longer actively lobby against local, state and federal efforts to raise the minimum wage to $15 an hour. The move comes as Democrats in the U.S. House have thrown their weight behind a bill to raise the federal minimum wage from $7.25 to $15 per hour by 2024.

The decision by McDonald’s was made public in a recent letter sent from Genna Gent, vice president of U.S. government relations for McDonald’s, to the National Restaurant Association,  an industry group that represents more than 500,000 restaurant businesses across the country.

According to the corporate watchdog group, SourceWatch, the National Restaurant Association is a key lobbying group that has fought hard in recent years to block worker-friendly issues such as paid sick days and increases in the minimum wage. As Politico reporter Rebecca Rainey explained, losing McDonald’s as an ally in the fight against wage hikes serves as a “serious blow to the trade group.”

Despite the decision, however, the National Restaurant Association has stood by McDonald’s and recently called the company a “valued member” of its organization.

While initially seen as an upstart movement funded by labor union activists, the fight for a higher minimum wage appears to have moved squarely into the mainstream political landscape and is likely to remain a key campaign issue throughout the 2020 election.

Writing in the trade publication Restaurant Business in January, Peter Romeo declared that the “$15 minimum wage is already a presidential campaign issue.” Romeo noted that Vermont Sen. Bernie Sanders, a current contender for the nation’s highest office, has “already set the so-called living wage as an issue he’ll keep front and center.” In so doing, Sanders’ support, which he has expressed since at least 2015, could “prove a test for fellow senators who hope to land the Democratic nomination by winning the support of unions and blue-collar voters.”

Most of the major Democratic presidential candidates, from Kamala Harris to Elizabeth Warren, already support raising the minimum wage to $15. Recent polls also show a majority of American voters support increasing the minimum wage.

One of the groups that has been calling attention to labor and wage issues in the restaurant industry is the nonprofit Restaurant Opportunities Centers United (ROCU). Anthony Advincula, the public affairs officer for ROCU, tells In These Timesthat he feels hopeful after McDonald’s decision to stop lobbying against a minimum wage increase.

“We applaud McDonald’s efforts to not block the move to raise wages,” Advincula says, before expressing a note of caution. McDonald’s decision is a “good sign,” he insists, but not cause for celebration just yet. “We are not going to stop. The workers as well as the unions will never step backwards,” Advincula added, indicating that the fight now for groups such as his is to help ensure that the federal minimum wage bill becomes more than just a campaign talking point.

The Democrats in the House are largely in support of such a wage raise, but many in the Republican-controlled Senate have voiced their opposition to the proposed increase, meaning the Raise the Wage bill—the current legislation lifting the minimum wage to $15—could soon hit a dead end.

Regardless of these roadblocks, many observers see undeniable momentum on this issue. Companies such as Amazon, Target, Bank of America and Costco have independently committed to raising workers’ wages, perhaps in part to avoid the increasingly negative attention some have received over their employees’ inability to make ends meet while company profits soar.

Yet while the McDonald’s Corporation has stated that it actively fight wage increases, it still has not agreed to raise its own minimum wage. In her letter to the National Restaurant Association, Gent argued that the “average starting wage at its corporate-owned stores already exceeds $10 per hour,” according to a Politico report. That figure is higher than the federal minimum of $7.25 per hour. Gent also noted that individual franchise owners set the pay rate for their own locations.

The lack of commitment to an overall minimum wage increase from McDonald’s has led some to dismiss the company’s recent announcement as little more than a publicity stunt. Still, in an op-ed published in the Chicago Sun-Times, Christine Owens, Executive Director of the National Employment Law Project, stated that McDonald’s decision to stop participating in the campaign against minimum wage increases is a sign that such opposition is “untenable in today’s America.”

“There’s no doubt the company’s decision is a direct response to the thousands and thousands of McDonald’s workers who’ve taken to the streets, gone on strike and even gotten arrested to further their fight for $15 an hour and a union,” Owens wrote. She then tapped into the growing political and popular support for wage increases, noting that the company’s “move comes at a time when McDonald’s opposition to minimum wage increases has clearly become out of step with both the politics around wages and the actions of companies across the country.”

This article was originally published at In These Times on April 11, 2019. Reprinted with permission.

About the Author: Sarah Lahm is a Minneapolis-based writer and former English Instructor. She is a 2015 Progressive magazine Education Fellow and blogs about education at brightlightsmallcity.com.

Fast food workers declare victory after McDonald’s withdraws opposition to minimum wage hikes

Tuesday, March 26th, 2019

After six years of strikes, lawsuits, and damning public scrutiny of how the fast food business model relies on taxpayer-subsidized poverty wages, McDonald’s formally withdrew from efforts to block a federal minimum wage hike on Tuesday.

The chain will also stop working against minimum wage increases at state and local levels, its executives told lobbying partners at the National Restaurant Association in a letter.

Workers and organizers involved in the six-year campaign of walk-outs, demonstrations, and litigation, dubbed the “Fight for $15,” immediately celebrated the about-face and pressed their advantage.

“It’s also time the company respect our right to a union. Since day one, we’ve called for $15 and union rights and we’re not going to stop marching, speaking out, and striking until we win both,” Kansas City McDonald’s worker and prominent Fight for $15 leader Terrence Wise said in a statement. “McDonald’s decision to no longer use its power, influence and deep pockets to block minimum wage increases shows the power workers have when we join together, speak out, and go on strike.”

Wise’s mix of praise and warning reflects some murkiness attending the company’s decision. McDonald’s hasn’t renounced its membership in the “other NRA,” just forsworn corporate support for an ongoing lobbying effort funded in part through its own dues payments to the group. And it’s unclear if the company now welcomes the $15 wage floor workers have consistently sought since 2012, or if it merely accepts some smaller increase is inevitable.

The details of how minimum wage hike policies come together are always tricky, as business organizations fight to carve out certain sizes of business and to slow the phase-in period of a wage hike beyond what workers and progressive economists say is reasonable. The nation’s first $15 hourly wage floor deal was the product of months of vigorous negotiations where “everybody left… a little bit of blood on the floor,” as Seattle Hospitality Group leader Howard Wright told ThinkProgress after that city brokered the first low-wage labor peace of the conflict-oriented era workers like Wise created.

Despite Tuesday’s letter, McDonald’s is also continuing to fight a federal labor board’s finding that its franchise business model does not protect the corporate parent from liability for how its franchisees operate their stores. That dispute over whether or not “joint employer” legal doctrines apply to the franchise models common to the fast food industry likely presents a more fundamental threat to McDonald’s ability to funnel money to its shareholders and CEOs than do wage floors.

But if the war between McDonald’s and workers like Wise isn’t exactly over, it’s radically reshaped by Tuesday’s letter, which was first reported by Politico.

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Retail and service workers paid at or near the legal minimum have become a staple of the stock price-obsessed modern U.S. business world. Congress’ multi-generation failure to hike the federal minimum pay has meant that corporate reliance on low-wage work steadily eroded the traditional social contract in which having a job meant being able to afford a decent standard of living. Instead, as people who work substantial hours found themselves impoverished anyhow, government programs funded by taxpayers stepped into the gap — effectively subsidizing the profits McDonald’s and its peers reaped from their low-wage business models.

Stark partisanship within federal government coincided with the rapid, coast-to-coast spread of Fight for $15 strikes and protests, preventing legislative action in response to the mounting labor strife for years. A bill to gradually raise the federal minimum wage from $7.25 to $15 was among the first legislative proposals Democrats introduced after taking the House in last year’s midterm elections.

The same month, Chamber of Commerce officials announced they’d entertain some pay hike provided Democrats were willing to negotiate some flavor of concessions. Like the chamber’s announcement, Tuesday’s high-profile maneuver from McDonald’s carries major symbolic weight but leaves lingering unanswered questions about just how far major corporate interests that have taken publicly-subsidized wage serfdom for granted for decades are now willing to move in the name of economic justice.

This article was originally published at ThinkProgress on March 26, 2019. Reprinted with permission. 

About the Author: Alan Pyke is a reporter for ThinkProgress covering poverty and the social safety net.

#MeToo Hits Fast Food: Why McDonald’s Workers Are Out on a Historic Strike Today

Wednesday, September 19th, 2018

Workers at McDonald’s are set to walk out of work today in ten U.S. cities: Chicago, St. Louis, Durham, Kansas City, Los Angeles, Miami, Milwaukee, New Orleans, Orlando and San Francisco.

While a string of fast food strikes has hit chains in recent years, this time workers aren’t walking out for higher wages, but for respect and freedom from harassment in an industry known for rampant abuse.

In the non-unionized fast food industry, marked by high turnover, low wages, and poor to non-existent benefits, sexual harassment is endemic. A recent study of fast food restaurants such as Taco Bell and McDonald’s found that 40 percent of workers reported experiencing sexual harassment at work. A full 60 percent of the women who reported multiple occurrences of harassment said they felt pressure to accept the abuse because they could not afford to quit their job.

McDonald’s has faced a slew of lawsuits related to sexual harassment in recent years. In October 2016, Fight for $15, the group advocating for minimum-wage increases in the service sector, filed 15 sexual harassment claims with the Equal Employment Opportunity Commission, accusing the McDonalds corporation and franchisees of failing to protect—and sometimes retaliating against—workers reporting harassment.

According to the National Women’s Law Center, an organization supporting the striking workers, McDonald’s management routinely “initiated or disregarded” instances of sexual harassment. Among the incidents reported by the Center: A 15-year-old cashier in St. Louis who was asked by an older male employee: “Have you ever had white chocolate inside you?” When the 15-year-old reported the harassment to her manager, she was told, “you will never win that battle.” In New Orleans, a female worker complained about a co-worker groping her, to which her manager responded that she should “take it to the next level” with him. This same worker also endured an attempted sexual assault, which she did not report because of her past experiences.

“By funding the legal representation in these cases, we hope to help ensure that these charges will be a catalyst for significant change,” Sharyn Tejani, Director of the TIME’S UP Legal Defense Fund, said in a statement. “Few women working in low-wage jobs have the means or the financial security to challenge sexual harassment. As shown by these charges and thousands of intakes we have received at the Fund from women in every industry, those who report their abuse are often fired, demoted or mocked—and since nothing is done to stop the harassment, nothing changes.”

The TIME’S UP Legal Defense Fund is the latest example of the #MeToo movement’s solidarity with low-wage workers. The Fund, which arose as a response to the sexual harassment faced by women in Hollywood, has now amassed over 200 volunteer lawyers, and has pledged to support “the factory worker, the waitress, the teacher, the office worker.” The organization was also led to this cross-class alliance in part by expressions of solidarity from workers across sectors, including a letter signed by 700,000 female farmworkers associated with the Alianza Nacional de Campesinas, and a 2017 “Take Back the Workplace” march in Los Angeles.

The strike is historic. While labor organizing campaigns have often made sexual harassment a focal point, this strike marks the first multi-state action devoted solely to the issue. 

Workers organizing against sexual harassment at McDonald’s can draw from a long tradition. In the 1830s, one of the first labor struggles in the early phases of American industrialization centered around addressing the sexual harassment and assault faced by female mill workers in Lowell, Massachusetts.

In one of the first efforts to organize workers at a restaurant chain, the Hotel Employees and Restaurant Employees International Union (HERE) launched a six-year campaign during the 1960s to organize Playboy Bunnies. The campaign centered around combating the sexist workplace of the Playboy Clubs, an environment rooted in Hugh Hefner’s ethos that “women should be obscene and not heard.”

In the book Feminism Unfinished, Dorothy Sue Cobble writes that tenacious HERE organizer Myra Wolfgang told reporters the Bunnies would “bite back” against Playboy’s sexist working conditions.  And that’s just what they did. According to Cobble, management ultimately agreed to a “national contract promising to pay wages to Bunnies (previously the women relied solely on tips) and allow Bunnies more discretion over uniform design, customer interactions, and company appearance standards.”

While historically unions have (albeit sometimes unsuccessfully) been a bulwark against sexual harassment, fast-food empires like McDonald’s have always been closed off to unions. Without the protection of a union, fast food workers are particularly vulnerable to harassment. But, according to sexual harassment expert Lin Farley, the equation can also be reversed: Harassment can be a tool to prevent unionization and collective worker struggle. “You have fast-food managers systematically using sexual harassment to keep turnover high, so they don’t have to unionize, they don’t have to give higher wages,” Farley told On the Media.

That might be changing, however. With a more class-conscious #MeToo movement, a wave of militant teachers’ strikes, anti-sexual harassment campaigns and strikes in the majority female hotel industry, it’s clear that women are fed up with abuse in the workplace. The McDonald’s strike shows that this increased organizing may soon translate into more wins for labor in the most exploited sectors like the fast food industry, where class struggle is now on the menu.

This article was originally published at In These Times on September 18, 2018. Reprinted with permission. 

About the Author: Rachel Johnson is a writer based in Chicago. She holds a master’s degree in U.S. history from Northwestern University.

Wendy’s refuses to join program protecting farm workers from sexual abuse

Monday, March 19th, 2018

When Silvia Perez came to Immokalee, Florida from Guatemala in 1993, there was one profession that made sense: working in the fields.

“Tomato-picking is the biggest industry in Florida, and you find out about it right when you arrive,” she said. “It’s bigger than textiles or the restaurant business.”

Perez got a job on a farm in Immokalee, where she was one of five women on a farm saturated with men; she made friends with two other women at work and they stuck together. Before long, their male supervisor began following them around while they worked. One day, he compared the tightness of their clothing and encouraged Perez to wear tighter shirts and more fashionable clothes.

Perez dealt with it. With two kids to feed and minimal fluency in English, she felt that tomato picking was the best option for her in her new home.

Then, in 2008, her supervisor touched her breasts.

“He asked me if they are real or fake,” she recalled. “I was so angry.”

She remembered the incident as she protested on the streets of New York City for the past five days in support of worker protections.

Worker protections, for Perez, are more than a lofty ideal; they are actively enforced by the Fair Food Program (FFP), launched by the Coalition of Immolakee Workers(CIW) in 2011. The FFP creates a partnership between farm workers, Florida tomato growers, and participating retail buyers to enforce fair wages, worker safety, and other basic protections for farm workers through a three-pronged model: it includes worker-to-worker education sessions about worker rights that are held on the farm and on the clock, it adds a premium to the price of tomatoes that becomes a direct bonus for the tomato pickers, and it enlists the help of the third-party Fair Food Standards Council, which conducts regular audits and carries out ongoing complaint investigation and resolution.

Fast food restaurants like McDonald’s, Burger King, Subway, Taco Bell, KFC, and Chipotle have all signed on to the FFP, which means they only purchase their vegetables from farms with these protections. But Wendy’s refuses to participate. That’s what brought Perez to New York, to join the CIW in their fast and protest against the fast food chain’s refusal to join.

On Thursday, outside the Manhattan hedge fund offices of Nelson Peltz, Wendy’s largest shareholder and chair of its Board of Directors, Perez made her voice heard.

“I am here as a mother to break the silence and to end the abuse that exists where Wendy’s buys their tomatoes,” Perez said. “We’re demonstrating and we’re being joined by students, by thousands of people. And they’re on our side. They’re listening to us. They come, they show up. We hope that Wendy’s will listen. If not, we will keep showing up.”

Denying dignity to farm workers

When Perez first faced sexual assault at work, she didn’t have many options. There was no union to report to, and, throughout the 2000s, workers’ rights in Florida were quickly disappearing as then-Gov. Jeb Bush (R) dismantled the state’s Department of Labor.

Her experience was nothing new. Farm workers in the United States have long faced sexual abuse, rape, and harassment in the fields — a problem exacerbated by the fact that many of the workers are undocumented immigrants who are more easily taken advantage of by individuals in power.

So, Perez continued to put up with it. Until 2008, when she heard about a solution in the form of the Coalition of Immokalee Workers, a grassroots organization launched in 1993 that advocates for worker justice through community organizing. In 2011, CIW started the Fair Food Program.

From the fields, Perez noticed improvements as corporations started signing onto the FFP. Water, bathrooms, and shade became available to her and her colleagues. Her pay increased. There was a system to report problems, including a 24-hour hotline that she and other pickers could call from anywhere. For the first time, she felt like she had a voice at work.

“If someone on the field had a headache, they could actually ask for a break,” Perez told ThinkProgress.

To those who have never worked in the fields, these changes may seem minor. However, they’re important enough that Perez worries about farm workers who aren’t protected by the FFP. She’s heard stories from pickers who have witnessed sexual abuse and wage theft on non-FFP-protected farms. She was horrified to read a 2014 Los Angeles Times exposé of human trafficking circles run on the Bioparques de Occidente farm in Mexico.

Perez and the rest of the CIW said their dignity should be at the center of Wendy’s transactions.

Laura Espinoza, director of the Fair Food Standards Council, the third-party organization that oversees the FFP, agreed. She called the FFP an all-around beneficial situation: buyers get transparency from their supply chain, growers oversee safe, secure workplaces, turnover among workers on farms decreases, and tomato pickers like Perez are safe at their jobs.

Wendy’s isn’t alone. Although the FFP has seen growth — since 2011, it’s expanded to include seven states, three crops, and continues to get support from the fast food industry — there’s been a steady increase in U.S. buyers sourcing tomatoes from Mexico, said Jennifer Bond, an agricultural economist at the U.S. Department of Agriculture.

It’s problematic, as the success of the FFP hinges on buyers joining. With a surplus of farms that provide cheaper — and perhaps, as Wendy’s claims, riper — tomatoes, there is a strong financial incentive for companies like Wendy’s not to sign on to an agreement that promotes human rights.

“We at the Council are able to stop abuses because we go out to the farms and say, ‘If this doesn’t stop, you will not be able to sell your produce to our participating buyers.’ That’s what Wendy’s is denying to farm workers,” Espinoza said.

She cited a 2017 lawsuit in which a female farm worker at Favorite Farms in Tampa, Florida was sexually harassed and raped by her supervisor. When she reported the incidents, she was suspended, then fired. The U.S. Equal Employment Opportunity Commission (EEOC) sued the farm and won the lawsuit, but Espinoza said that didn’t provide enough long-term protection for the workers on that farm.

“With the FFP, if a farm worker or grower is found guilty of sexual assault or retaliation, they are banned from all FFP-participating farms,” she said. “But that individual can work at Wendy’s. Because they’re not enforcing these basic human rights.”

“We are here to be heard”

By sunset on Thursday evening, the dozens of Immokalee workers in New York were joined by thousands of marchers. Native New Yorkers, faith leaders, workers from outside of Florida, and students on spring break from as far as Indiana proceeded in front of Peltz’s building chanting, drumming, and carrying signs urging onlookers to boycott Wendy’s, to support human rights, and to buy fair food. It was day five of the protest, and the marchers were energized as they made their way from Park Avenue to a park opposite the United Nations where the air boomed with the voices of five women on a makeshift stage who were rapping about rights and being American.

For Perez, it was gratifying to be surrounded with such a show of support. Now, she hopes that Wendy’s will finally agree to prioritize the rights of pickers like her.

“Wendy’s is supporting the problem. They buy tomatoes where respect doesn’t exist, where there are no rights for workers,” Perez said amid the noise. “Wendy’s says that tomatoes are more fresh, more delicious. But they don’t know about the life of the workers. We are here to be heard.”

This article was originally published at ThinkProgress on March 16, 2018. Reprinted with permission. 

About the Author: Gina Ciliberto is a writer based in New York City. She covers social justice issues for the Dominican Sisters of Hope, among others.

Workers’ rights dealt major blow as GOP-led labor board sides with McDonald’s

Friday, January 19th, 2018

In September, the National Labor Relations Board tilted to a 3-2 GOP majority for the first time in ten years. Thus began a series of Obama-era policy reversals that previously strengthened worker protections.

By December, the NLRB overturned the Obama-era “Browning-Ferris” rule. The landmark rule had made it easier for employees to hold companies liable for labor violations committed by franchise owners or contractors. Before Browning-Ferris, a company needed to have direct and immediate control over their employees. Overturning the rule had implications for a 2014 case brought against McDonald’s, one of the biggest franchises in the country.

Trump reversal of Obama-era labor rule is great news for corporations

Friday, June 23rd, 2017

A transgender woman is suing McDonald’s and the owner of the franchised restaurant she worked for after allegedly experiencing sexual harassment and discrimination.

La’Ray Reed said a coworker asked if she were a “boy or girl,” “top or bottom,” or what her “role” was “in the bedroom.” She said she was groped and spied on while using the public toilet.

But for Reed to hold McDonald’s responsible for her alleged mistreatment, her lawyers have to prove that McDonald’s should be held responsible as a joint employer—not just the owners of the franchised restaurant. There is a question of whether the Labor Department’s recent decision to rescind the standard for determining who is a joint employer will hinder her ability to seek justice. The Obama administration’s standard went beyond simply looking at who sets wages and hires people, and considered a worker’s “economic dependency” on the business.

McDonald’s has resisted this legal responsibility for many years, and says it does not have control over things like pay and working conditions at franchised restaurants. In 2016, McDonald’s settled a wage-theft class action through a $3.75 million payment that allowed it to dodge responsibility. McDonald’s released a statement that said it “reconfirms that it is not the employer of or responsible for employees of its independent franchisees.”

Industry groups have been pushing against efforts to call businesses like McDonald’s joint employers for many years now. In 2015, Matt Haller, a lobbyist at the International Franchise Association called a 2015 National Labor Relations Board ruling on whether a recycling company could be called a joint employer, “a knife-to-the throat issue for the franchise model.” He told the Washington Post, “You’d be hard pressed to find a business that shouldn’t be concerned about the impact of this joint employer standard.” Haller said IFA was “pleased” at the department’s decision to rescind guidance this month.

But there is certainly hope for La’Ray Reed, and other workers like her who are experiencing discrimination or issues such as wage theft at work. Since the joint employer guidance does not have the full force of law, it is not as important to these cases as existing tests for determining if an employer relationship exists. Under the economic realities test, applied under Title VII of the Civil Rights Act of 1964 and the Fair Labor Standards Act, among other laws, a relationship exists if someone is economically dependent on that business. Paul Secunda, professor of law at Marquette University, who teaches on employment discrimination law, said this test will play a much bigger role in determining whether an employee can hold McDonald’s responsible for discrimination.

“Just the Trump administration withdrawing this guidance does not mean in any way that these claims are doomed to failure or are otherwise are not plausible,” Secunda said. “Because what matters the most with employment law is focusing on employment discrimination under Title VII and what other state laws apply there.”

‘This control standard is the standard that has been in place since the 1950s and ‘60s, and so it doesn’t make sense to have different standards under different laws. It only makes sense to hold liable those who control what happens in the workplace,” Secunda added.

Representatives of Fight for $15, a group of fast food workers, teachers, and adjunct professors advocating for better pay backed by the Service Employees International Union, said McDonald’s has failed to enforce its own policies.

“The growing number of allegations suggests a failure by McDonald’s to enforce the zero-tolerance policy against sexual harassment outlined in its Operations and Training and Policies for Franchisees manuals,” the labor group told BuzzFeed.

“There are terms and conditions that are set by the national parent McDonald’s,” Secunda said. “It has a policy on sexual harassment and equal opportunity that all its franchisees have to meet: that it will not tolerate sexual harassment whether based on transgender status or otherwise in the workplace. [The argument is] that McDonald’s parent company exercises meaningful control—that is being free from sexual harassment and demeaning conduct in the workplace.”

None of this means that any parent corporation is responsible for any franchisees’ lability, Secunda said, since every case must be decided on its facts, but where employers do exercise meaningful control over employees, there should be a possibility that they will be held responsible.

The decision to rescind this joint-employer guidance will by no means kill any possibility of holding a corporation, such as McDonald’s, responsible, and a judge would be more likely to consider the rule of law first, Secunda said, but the joint employer guidance would still be a helpful resource for the defendant to have in its arsenal.

“If I were a conservative jurist who wanted it to come out on the corporate conservative side of the world, I see that they could use this. ‘You know they’re the expert agency, so they can’t be wrong,’” Secunda said. “But I just think that would be disingenuous, because the agency has obviously changed its position based on the politics on the administration. And this should be an answer that has nothing to do with politics. It should be based on rule of law.”

This blog was originally published at ThinkProgress on June 22, 2017. Reprinted with permission. 

About the Author: Casey Quinlan is a journalist covering education, investments, politics, crime, and LGBT issues.

McDonald's settles with franchise workers for $3.75 million in wage theft lawsuit

Tuesday, November 1st, 2016

LauraClawson

McDonald’s is still insisting it isn’t a joint employer of workers in franchise restaurants, but even so, it’s paying out millions to settle a lawsuit over labor law violations by a franchisee:

In a filing in U.S. district court in San Francisco on Friday, lawyers representing about 800 employees at five restaurants owned by a single franchisee said Illinois-based McDonald’s would pay the workers $1.75 million in back pay and damages and $2 million in legal fees. […]

The 2014 lawsuit claimed McDonald’s and the franchisee, Smith Family LP, violated California law by failing to pay overtime, keep accurate pay records and reimburse workers for time spent cleaning uniforms. The franchisee previously settled the claims for $700,000.

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McDonald’s exerts tight control over how its franchisees do things it cares about. That happens not to include little things like obeying labor laws—but because McDonald’s control over how its franchisees do business is so well established, the National Labor Relations Board is moving toward treating McDonald’s as a joint employer. This settlement doesn’t settle that question, but at least these workers are getting a measure of justice.

This article originally appeared at DailyKOS.com on October 31, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

 

Fight for $15 workers file sexual harassment complaints against McDonald's

Thursday, October 6th, 2016

LauraClawson

Workers who are underpaid are all too often exploited and abused in other ways—after all, their employers know they’re vulnerable and need the paycheck. So we should be shocked, but not too surprised, by the contents of sexual harassment complaints against McDonald’s that the Fight for $15 has filed with the Equal Employment Opportunity Commission:


Cycei Monae, a McDonald’s worker in Flint, Michigan, said a manager showed her a picture of his genitals and said he wanted to “do things” to her, according to a complaint provided by Fight for $15. Corporate officials ignored her complaints, Monae said on a phone call with reporters on Wednesday.

In another complaint, a worker in Folsom, California, said a supervisor offered her $1,000 for oral sex.

Thirteen of the complaints were by women, and two were by men, said Fight for $15, which the Service Employees International Union formed in 2012.

gettyimages-496499558Expect McDonald’s to once again fall back on its excuse that it can’t possibly control anything about what franchisees do to their workers, even as it controls every other aspect of how franchise restaurants operate. That control is why the National Labor Relations Board has said McDonald’s should be treated as a joint employer of workers in franchise restaurants.

Issues like sexual harassment are why the Fight for $15 isn’t just about $15 an hour pay—workers say they’re fighting for “$15 and a union.” A union could represent workers facing harassment and give them power in numbers and tools to fight back. This is a fight more broadly for power and respect. Money is part of that, but it’s not the whole deal.

This article originally appeared at DailyKOS.com on October 5, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

After Ruling That McDonald’s Can’t Pay Workers In Bank Cards, The Bank Pays Up

Friday, June 5th, 2015

AlanPyke_108x108Paying employees through prepaid debit cards that incur fees when workers try to withdraw their cash is illegal in Pennsylvania, a judge ruled Tuesday. The lawsuit targeting a McDonald’s franchisee in the eastern-central part of the state has already prompted a powerful Wall Street bank to voluntarily give money back, a lawyer for the plaintiffs told ThinkProgress on Wednesday.

The case began in 2013 after a woman named Natalie Gunshannon sued a couple who own and operate multiple McDonald’s franchises in the state. The owners, Carol and Albert Mueller, had been using payroll debit cards provided by JP Morgan Chase rather than traditional paychecks or direct deposit payroll systems. After Gunshannon filed suit, the couple began offering direct deposit and traditional checks as alternatives to the payroll cards, which had previously been workers’ only option.

Gunshannon and other workers faced a $1.50 charge every time they used an ATM to access their wages, and a $5 charge for withdrawing the money over the counter at a cash register. Where a worker who misplaced a standard paycheck would be able to get a replacement check, the JP Morgan Chase prepaid cards charged a $15 replacement fee if lost or stolen. Paying bills online with the card meant spending an additional 75 cents on bank fees, and merely checking the balance of a card triggered a $1 fee.

The Muellers’ hourly workers were charged such fees nearly 47,000 separate times from the fall of 2010 to the summer of 2014, according to an expert witness in the case. That works out to roughly 20 separate fees per person in the class over a 45-month period.

Store managers, meanwhile, were offered direct deposit forms to receive their pay without facing the card fees.

When Gunshannon’s claim gained class action status earlier this year, all 2,380 hourly workers at the Muellers’ chain were able to join the case. Each of those workers would be entitled to a $500 damages payment plus the reimbursement of all the fees they were charged by the payroll cards, should the Muellers’ appeal of Tuesday’s ruling ultimately fail. In that case, the couple would have to pay out roughly $1.2 million in damages, unless they are able to strike a settlement with the workers’ attorneys.

Because the class action decision raised the stakes so significantly, that May ruling was in some ways a bigger deal than Tuesday’s finding that the Muellers had broken the law. The class status ruling in May certainly got Chase’s attention, plaintiffs’ attorney Michael Cefalo told ThinkProgress.

“Our lawfirm became bombarded with telephone calls. All of the class members were getting a form letter from Chase saying, we have decided to refund you all of the fees you have paid Chase,” Cefalo said. “We were shocked.” The voluntary payments from Chase ranged from as little as a penny to as high as $148, the attorney said. A call to the bank’s press office about the payments was not immediately returned.

The checks do little to shield the Muellers from the potentially backbreaking damages payments mandates by Pennsylvania’s Wage Payment and Collection Law. And while the money is nice, Cefalo said, it doesn’t erase what the McDonald’s franchisees and Chase did to his clients.

“Say I come up to you and I have an armed robbery, and then I say ‘I’m sorry, here’s your money back.’ I still committed a robbery,” he said. “You still paid ‘em the wrong way.”

The Muellers’ attorneys told Law360 they intend to appeal Tuesday’s ruling. They may yet succeed in persuading a different judge that the payroll cards fit the state’s definition of legal payment. In Tuesday’s decision, Judge Thomas Burke himself acknowledged that the relevant state law was written in 1961, and the technological progress in payments technology since then may cloud the case. He also asked the state’s Department of Labor and Industry to issue a formal administrative position on whether or not payroll cards that charge user fees are equivalent to cash or checks. The agency has previously said the cards are legal payment, but only in a non-binding advisory letter, according to Law360. A call to the agency for comment was not returned.

Payroll cards such as those the Muellers used are legal in many states, despite the fees that eat into workers’ wages. A handful of state legislatures are weighing new rules to govern the use of such cards, including Pensylvania itself and Washington state. The Consumer Financial Protection Bureau is working on regulations for a wide range of different prepaid debit cards including payroll cards like those in the Mueller case. The agency has warned employers that they must make alternative forms of payment available for any worker who doesn’t want the cards, and is currently soliciting comments on a proposed federal regulation.

With millions of Americans lacking access to banking services, the cards can be an important and beneficial tool for workers so long as they come with the right safeguards, the National Consumer Law Center has argued. Close to 5 million people were paid through such cards in 2012, a number projected to double by 2017. Similar prepaid debit cards are also being used in some cases to pay public benefits such as unemployment insurance. The banks that provide the cards and charge the fees are trying to recoup some of the profit they lost when Dodd-Frank regulations curtailed their old business practices involving fees for standard debit cards.

This blog was originally posted on Think Progress on June 3, 2015. Reprinted with permission .

About the Author: The author’s name is Alan Pyke. Alan Pyke is the Deputy Economic Policy Editor for ThinkProgress.org. Before coming to ThinkProgress, he was a blogger and researcher with a focus on economic policy and political advertising at Media Matters for America, American Bridge 21st Century Foundation, and PoliticalCorrection.org. He previously worked as an organizer on various political campaigns from New Hampshire to Georgia to Missouri. His writing on music and film has appeared on TinyMixTapes, IndieWire’s Press Play, and TheGrio, among other sites.

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