Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Wage Hike’

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.

Obama’s Wage Hike For Federal Contractors Won’t Apply to Disabled Workers

Sunday, February 2nd, 2014

Mike ElkIn his State of the Union address on Tuesday, President Obama announced that he would issue an executive order raising the minimum wage to $10.10 for workers employed on federal contracts. The order has yet to be issued, so it’s unclear exactly how many and what type of workers will be covered. However, one group is already slated for exclusion: workers in a special government contracting program for people with disabilities.

Ari Ne’eman, president of the Autistic Self Advocacy Network, says that disability advocates were informed on a conference call Wednesday with Vice President Joe Biden and Secretary of Labor Thomas Perez that Obama’s executive order will not apply to federal contractors that use “14(c) programs”—in which workers with disabilities are paid subminimum wages.

Under the 14(c) exemption in the Fair Labor Standards Act, workers with disabilities are excluded from minimum-wage protections if they are employed in certified training programs. Though there is no official government data on the size of these programs, the National Council on Disabilities estimates that the federal government employs thousands of workers under 14(c). Nationwide, approximately 420,000 disabled Americans are employed in 14(c) programs coordinated through federal, state and local governments, and legally paid below the minimum, with some only making pennies per hour.

As Working In These Times reported last March, deep divisions remain within the disability community and even among top Congressional Democrats over whether disabled workers employed in 14(c) programs should be paid below the minimum wage. Some disability advocates—led by ACCSES, which represents employers of disabled workers under the 14(c) programs—claim that these programs provide valuable training to help transition people with disabilities into jobs, and that a minimum wage requirement would make that mission impossible.

Other advocates, however, say that the programs don’t provide meaningful training and rarely lead to outside jobs.  A 2001 study by the federal General Accountability Office (GAO) found that only 5 percent of workers employed in 14(c)-sheltered workplace programs left to take regular “integrated employment” jobs. These critics say the programs contribute to the well-documented cycle of poverty for those with disabilities: According to the Bureau of Labor Statistics, a person with a disability is three times as likely to live in poverty as a person without a disability.

On Thursday, the National Council on Disability (NCD), an independent federal advisory board, issued a statement on Thursday afternoon blasting the Obama administration’s decision to exempt workers with disabilities from the minimum-wage increase.

According to the National Council on Disability’s statement, “NCD believes that the Section 14(c) program is a policy relic from the 1930s, when discrimination was inevitable because service systems were based on a charity model, rather than empowerment and self-determination, and when societal low expectations for people with disabilities colored policymaking … If the administration agrees with this principle and wants to stamp out income inequality for all Americans, including Americans with disabilities, we urge you to reconsider what was shared on yesterday’s White House conference call and explicitly state in the Executive Order that the increase in the minimum wage for employees of federal contractors applies to all employees of federal contractors, including thousands of Americans with disabilities who are currently being paid less than minimum wage under the Section 14(c) program.”

The White House did not respond to a request for comment. According to Ne’eman of the Autistic Self Advocacy Network, officials told him on Wednesday’s conference that the Obama administration believes it doesn’t have the authority to raise the wages of 14(c) workers.

The Autistic Self Advocacy Network disputes this claim. In a legal memo put out Thursday, it concludes that “payment of subminimum wages to contract and sub-contract workers with disabilities is not required by statute [but] is left to the direction of the Department of Labor…As a result, to the extent that the president enjoys the authority to direct executive agencies to set a minimum wage for workers on all federal contracts, he may also direct those agencies to eliminate subminimum wage payment of contract workers with disabilities.”

To Ne’eman, the administration’s decision makes no sense. “We think they [have the authority] and hope our analysis will convince them,” he wrote in an email to Working In These Times. “If the administration has the power to raise the wages of workers without disabilities employed by government contractors, they have the power to do the same for workers with disabilities. There is no statute requiring government contractors to pay less than minimum wage to workers with disabilities.”

This article was originally printed in Working In These Times on January 30, 2014.  Reprinted with permission.

About the Author: Mike Elk is an In These Times Staff Writer and a regular contributor to the labor blog Working In These Times.

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