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Posts Tagged ‘Minimum Wage’

House to vote on $15 minimum wage, but Republicans are determined to slip in a poison pill

Thursday, July 18th, 2019

With the federal minimum wage stuck at $7.25 for the longest time it’s gone without an increase since 1938, the Democratic House is preparing to vote on the Raise the Wage Act on Thursday. The bill would raise the minimum wage to $15 an hour by 2024—not exactly blazing speed, but a major improvement over more years of $7.25.

Donald Trump has pledged to veto the bill, which was a recreational promise anyway, since Senate Majority Leader Mitch McConnell and his fellow Republicans won’t let it through. Because Republicans hate working people and think the minimum wage should be a poverty wage, if they even think a minimum wage should exist at all. Republicans have been emboldened in their opposition by a Congressional Budget Office analysis that treats outdated studies the same as the best research on the issue, using those outdated and often garbage studies to weigh against the reams of research showing that raising the minimum wage does not cost jobs. Other research shows widespread and often unexpected benefits from increasing the minimum wage, including lower suicide rates and lower recidivism among people released from prison.

Nonetheless, despite the best research—which draws on many, many cases where the minimum wage has gone up, allowing for real-world studies of what happens—Republicans will not only oppose the raise but will try to lay traps for squishy Democrats, using a motion to recommit to undermine the entire bill. Congressional Progressive Caucus Co-chairs Reps. Pramila Jayapal and Mark Pocan have warned that if wobbly Democrats fall into the motion to recommit trap, the CPC will vote against the bill itself, saying in a statement, “We have no doubt that Congressional Republicans will try to divide the Democratic Caucus with a disingenuous Motion to Recommit. It’s up to all of us to stand unified and reject their bad faith effort to undermine this bill,” and, “After consulting with our Members this week, we are confident that any bill that includes a poison pill Republican Motion to Recommit will lack the votes to pass on the House Floor.”

It’s time for this bill to pass, without poison pills. A vote for a $15 minimum wage is a vote for gender and racial equity, since it would disproportionately benefit women and people of color. A vote for a $15 minimum wage is a vote to give 1.3 million veterans a raise. And it’s a vote for the general proposition that work should pay a wage that someone, somewhere in this country can actually live on.

This blog was originally published at Daily Kos on July 17, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

 

Dem leaders float new tweak to soften minimum wage bill

Tuesday, July 16th, 2019

Sarah Ferris

Top House Democrats are eyeing a major tweak to the caucus’ signature minimum wage proposal, part of a last-minute bid to bolster support among moderates just days before a floor vote.

Democratic leaders are floating a more gradual path to a federal minimum wage of $15 per hour, which would mark a concession to some centrists who had been hesitant to back the bill for fear of aggravating small businesses, according to multiple sources familiar with the ongoing discussions.

Under the proposal, employers would have six years to phase in the wage hike rather than five.

The House plans to vote on the bill next week. And while top Democrats like Majority Leader Steny Hoyer have said they’re confident it will have enough votes to pass, they have worked behind the scenes to shore up more support and avert any drama on the floor.

Democrats also say that moderating the proposal further could ramp up pressure on Senate Republicans and the White House to drop their opposition to a minimum wage increase.

“I think there’s a recognition in every camp that the more gradual and reasonable we can make this, the more pressure there is on the Senate,” one senior aide said.

The proposed change to the bill, which has not been finalized, is also part of a strategy to avoid a last-minute failure on the floor at the hands of House Republicans.

Democrats have long worried that a GOP procedural maneuver on the floor — in which Republicans use a “motion to recommit” to put forward their own changes — could ultimately tank the entire effort.

If Republicans win support from about two dozen Democrats, they could force changes to the bill all within a few minutes. That could result in others in the caucus, including progressives, choosing to revolt and vote it down.

Heather Caygle contributed to this report.

This article was originally published by the Politico on July 12, 2019. Reprinted with permission. 

About the Author: Sarah Ferris covers budget and appropriations for POLITICO Pro. She was previously the lead healthcare and budget reporter for The Hill newspaper.

A graduate of the George Washington University, Ferris spent most of her time writing for The GW Hatchet. Her bylines have also appeared at The Washington Post, the Houston Chronicle and the Center for Investigative Reporting.

Raised on a dairy farm in Newtown, Conn., Ferris boasts a strong affinity for homemade ice cream, Dunkin Donuts coffee and the Boston Red Sox.

Raising the minimum wage doesn't hurt jobs—it improves people's lives in ways you might not expect

Wednesday, July 10th, 2019

Raising the minimum wage doesn’t hurt job growth. We know this because economist after economist has produced research backing up that statement, often drawing on parts of the U.S. that have increased the minimum wage. That’s why, after the Congressional Budget Office on Monday blew off its responsibility to use the best available information and offered Republicans fuel to claim that a minimum wage increase would cost jobs, economists who study minimum wage increases are lining up to explain why the CBO is just plain wrong.

“While they are acknowledging some of the research,” the Economic Policy Institute’s Ben Zipperer told The Washington Post, “I think they are drawing on older research that the new research has pointed out is problematic.” Berkeley economist Michael Reich and UMass-Amherst economist Arindrajit Dube made similar points, with Reich saying that the CBO’s equal reliance on high- and low-quality studies “reveals an unwillingness to recognize the major differences in scientific quality among studies.”

A recent study by Dube and Zipperer, along with Dorok Cengiz and Attila Lindner, “evaluated the local effect of more than 130 minimum-wage increases since 1979 and showed the fall in jobs paying less than the new minimum wage had been fully offset by the jump in new jobs paying just over it.” One hundred and thirty over 40 years. That’s a lot of data. It’s especially a lot of data for the CBO to be more or less ignoring.

But! That’s not all! Economists have other data showing important effects of raising the minimum wage. When the minimum wage rises, suicides fall. So does recidivism for recently released prisoners. Workers are more productive and less likely to change jobs. Consumer spending rises and poverty falls. In short, the working people’s economy gets better and people get happier and more hopeful. Republicans, of course, remain bitterly opposed to this.

This blog was originally published at Daily Kos on July 9, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

House Dems on brink of minimum wage victory

Thursday, June 20th, 2019

Sarah FerrisHouse Democratic leaders are on the cusp of a long-awaited victory on the party’s signature $15-an-hour minimum wage bill, overcoming months of sharp resistance from many of the caucus’ moderates.

Top Democrats are saying privately they’re confident that they are close enough to the 218 votes needed to pass it to bring the bill to the floor within weeks, according to multiple sources. It would mark a major political victory at the six-month mark of the Democrats’ majority.

Several one-time holdouts — including Rep. Terri Sewell (D-Ala.), who has championed a competing approach that would create a “regional” minimum wage — now say they will vote for the bill on the floor, though they are still looking for additional assistance for small businesses that may be hurt by the minimum wage.

The vote, which is expected shortly after the House returns from its Fourth of July recess, will put an end to a frenzied lobbying blitz by top Democrats to win over the caucus’s remaining skeptics, which had become a glaring example of the tensions between moderates and progressives.

House Majority Whip Jim Clyburn (D-S.C.) said in a closed-door leadership meeting Tuesday night that he secured roughly 213 votes, according to aides. Democrats believe the pressure of the roll call vote will be enough to squeeze the few remaining holdouts.

“I don’t have any doubt that we’re going to have the votes,” House Majority Leader Steny Hoyer (D-Md.) told reporters Wednesday, though he stopped short of committing to a timeframe. “There are some folks who would like to see us do something to make sure the small business fears are allayed.”

The one lingering concern, according to people familiar with the discussions, is how to deflect potentially disastrous GOP attacks on the bill when it comes up for a vote.

Republicans are expected to use their procedural powers on the floor to force Democrats to vote on tricky issues related to the minimum wage — like protections for small businesses — that could further expose the caucus’s ideological divide.

It could also tank the entire bill. If Republicans successfully force any changes into the bill, scores of Democrats would likely flee, because progressive leaders have refused to support anything less than their hallmark $15-an-hour proposal.

The lead author of the bill, House Education and Labor Chairman Bobby Scott (D-Va.), had struggled for months to rally enough moderate Democrats behind the bill, with some members privately complaining of a “tone-deaf” approach.

But momentum began to shift in recent weeks, with leaders of the Blue Dog Coalition, Rep. Tom O’Halleran (D-Ariz.) and Stephanie Murphy (D-Fla.), helped to deliver votes from red-state Democrats in exchange for their own provision in the bill.

That compromise amendment, from O’Halleran, Murphy and TJ Cox (D-Calif.), will be included in the final bill, according to multiple aides. It would require the Government Accountability Office to conduct a study on the policy’s economic effects after roughly two years — which moderates see as a potential way to revisit the issue if economic conditions deteriorate.

Scott and his team also helped win over individual members with district-by-district data that showed the number of people who would get a raise, offering a counterpoint to the objections from some local businesses.

Top Democrats, including Hoyer, have vowed to hold a vote on the minimum wage bill before the August recess, under intense pressure from outside groups to deliver on a key plank of the progressive platform.

Scott and other Education and Labor members have argued behind the scenes for weeks that they have enough votes to bring the bill to the floor. They’ve said that some holdouts would only come out in favor of the bill if they were facing a roll call — a process that one Democratic aide described as a “game of chicken.”

Heather Caygle contributed to this story.

This article was originally published by the Politico on June 20, 2019. Reprinted with permission. 

About the Author: Sarah Ferris covers budget and appropriations for POLITICO Pro. She was previously the lead healthcare and budget reporter for The Hill newspaper.

A graduate of the George Washington University, Ferris spent most of her time writing for The GW Hatchet. Her bylines have also appeared at The Washington Post, the Houston Chronicle and the Center for Investigative Reporting.

Raised on a dairy farm in Newtown, Conn., Ferris boasts a strong affinity for homemade ice cream, Dunkin Donuts coffee and the Boston Red Sox.

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

Bernie Sanders will present proposal on behalf of Walmart workers at annual shareholders meeting

Wednesday, May 22nd, 2019

Every year, Walmart stages a massive, multi-day meeting in Arkansas for the company’s shareholders, not far from the corporate headquarters of the world’s largest retail store. The company’s top executives deliver speeches, its board of directors hears various proposals regarding corporate behavior and governance, and special guests make surprise appearances to keep the masses entertained.

The shareholders’ meeting is also when the company’s 1.5 million U.S. workers — many of whom work for poverty-level wages with few benefits and employment safeguards — are given a chance to directly confront the billionaires whose fortunes they helped build.

This year, they’re bringing a megaphone with them to amplify their message: Democratic presidential candidate and Vermont Sen. Bernie Sanders (I).

For years, workers have appeared at the shareholders’ meeting to propose new corporate policies designed to help lift the retailer’s army of hourly workers out of poverty and provide them with greater protections on the job. Every single proposal they have put forward has been voted down and ignored by the Walton family, which controls the majority of votes on the board.

Sanders will appear on the workers’ behalf this year to present their latest proposal: give hourly workers one seat on the company’s board.

For years, Sanders has fought on behalf of the country’s 80 million hourly workers, pushing for increases to the minimum wage, strengthening unions, and capping executive salaries which have skyrocketed in the last 25 years. Walmart, by virtue of employing more of these hourly workers than any other company in the country by a wide margin, has been a specific target for Sanders.

Last year, he introduced the subtly-named “Stop Walmart Act” designed to pressure the company to raise its minimum wage to $15 an hour. The bill would prohibit large corporations from buying back their own stock — a popular mechanism for boosting share prices — unless they introduce a series of benefits for hourly workers first, in addition to the wage hike.

For their part, Walmart executives appear less than thrilled that Sanders will be in attendance to directly criticize their corporate practices on the biggest day of the year.

“If Senator Sanders attends, we hope he will approach his visit not as a campaign stop, but as a constructive opportunity to learn about the many ways we’re working to provide increased economic opportunity, mobility and benefits to our associates — as well as our widely recognized leadership on environmental sustainability,” the company said in a statement.

The proposal Sanders will be introducing isn’t the only one shareholders are expected to vote on next month. Another one calls for the company to strengthen protections against workplace sexual harassment.

The company is advising shareholders to vote no.

This blog was originally published at ThinkProgress on May 21, 2019. Reprinted with permission.

About the Author: Adam Peck is a deputy editor at ThinkProgress who works with politics reporters.

Power Connection: Connecticut AFL-CIO Empowers Fight for $15

Wednesday, May 22nd, 2019

In a monumental leap of economic justice last week, the Connecticut Legislature passed a law that increases the state minimum wage to $15 per hour by 2023. The increase brings Connecticut into parity with its neighboring states of New York, Massachusetts and New Jersey, which have passed similar increases. The victory comes as a result of unprecedented coordination among labor unions and allied advocates in the state that have been fighting for an increase for years.

“After years of grassroots organizing, Connecticut will finally catch up to our neighbors,” said Connecticut AFL-CIO President Sal Luciano. “We applaud the legislature for doing the right thing and raising wages for over 330,000 workers in our state.”

The victory was aided by a number of union members who have been elected to the state’s General Assembly. Of critical importance to the bill’s passage were the co-chairs of the assembly’s Labor and Public Employees Committee, state Sen. Julie Kushner, former director of UAW Region 9A, and state Rep. Robyn Porter, who was once a single mother who worked three jobs to make ends meet.

The state legislature also has a paid family and medical leave bill that is tentatively scheduled for a vote the week of May 20. “All these combined are going to make a huge difference in people’s lives,” Kushner said.

The significance of the measure is not lost on those who will immediately benefit from the increase. “When fast-food workers walked off the job nearly seven years ago demanding $15 and a union, nobody thought we had a chance,” said Joseph Franklin, a leader in the Fight for $15 coalition and a McDonald’s worker in Hartford. “Our movement is gaining momentum.”

The Connecticut AFL-CIO has been diligently working to elect union members and allies to office, and this victory shows that the path to power flows directly through the labor movement.

This blog was originally published at AFL-CIO on May 21, 2019. Reprinted with permission.

About the Author: Michael Gillis is a writer at AFL-CIO.

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.

Maryland workers to get a $15 minimum wage by 2025

Friday, March 29th, 2019

The Maryland legislature overrode Republican Gov. Larry Hogan’s veto Thursday to pass a $15 minimum wage law. The state is, the Washington Post reports, the first state below the Mason-Dixon line to pass such a law, and the sixth overall. It’s also the third state this year, which looks a little something like momentum—or the aftereffects of a blue wave.

Hogan’s veto was easily overridden, despite his attempt at a compromise of an ultimate minimum wage of $12.10 by 2022. The new law isn’t without its compromises, though: Tipped workers will still get a drastically lower minimum wage, and businesses with fewer than 15 employees will have until July 2026 to reach $15.

Around 573,000 Maryland workers will get a raise, according to the National Employment Law Project. Maryland follows California, Illinois, Massachusetts, New Jersey, and New York. And none of those states would have taken this step if fast-food workers hadn’t gotten out in front and organized and demanded something more than was considered politically realistic.

This blog was originally published at Daily Kos on March 28, 2019. Reprinted with permission. 

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.

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