Posts Tagged ‘wages’
Friday, September 12th, 2014
The Heritage Foundation released a new Issue Brief this week: “Higher Fast-Food Wages: Higher Fast Food Prices”. Author James Sherk claims that if the minimum wage in the fast-food industry were to increase to $15 an hour, “the average fast-food restaurant would have to raise prices by nearly two-fifths … caus[ing] sales to drop by more than one-third, and profits to fall by more than three-quarters.”
While the Heritage Foundation attempts to present a mathematically and logically correct depiction of the aftermath of a minimum-wage increase, they fail to acknowledge one fundamentally important fact: the increase will be gradual, occurring over a period of years. Even without considering the report’s many other flaws, the Heritage Foundation’s assumption of a sudden jump in the minimum wage from its current level of $7.25 to $15 is unrealistic.
As Vanessa Wong highlights in “This is What Would Happen if Fast-Food Workers Got Raises”, there are two distinct types of outlets: “those run by the company, and those operated by independent franchisees who set their own wages and pay royalties to the chain.” Thus, Heritage Foundation hastily categorized all fast-food restaurants as one, not even considering the elephant in the room: the corporations such as McDonald’s that charge each branch high franchising fees.
So, how much are these small franchisees paying the mother-ship corporations? According to Robert E. Bond’s “How Much Can I Make?” the franchise fee, royalties, and advertising for a typical McDonald’s is $45,000, +12.5%, and 4%. For a doughnut shop like Dunkin’ Donuts, the fees are even higher, with a franchise fee of $50,000.
If Heritage’s figures are correct, these fast-food restaurants have a profit margin of just 3 percent before taxes, which “works out to approximately $27,000 a year.” Thus, the franchise fee and royalties are way too high — those profits go directly to, in this case, McDonald’s, which operates at a profit margin of 19.31% as of June 30, 2014.
McDonald’s and other large fast-food companies have successfully shrugged off responsibility for the welfare of its workers by making the franchisees responsible. The low-wage jobs — and the cost of these salaries — are offloaded on the franchisees, while the corporations maintain their guaranteed profits, and relative profit margins from quarter to quarter.
Raising the minimum wage — even if only to $10.10, not to the living wage level of $15 an hour — is an economic imperative. Heritage believes that fast-food restaurants still offer “entry level jobs,” and “generally employ younger and less-experienced workers”.
Fast-food restaurants used to be a place for “entry level employees” — teens and young adults, sometimes still in school, newly entering the workforce. The recession drastically changed the dynamic. Today, at fast-food restaurants, we see the faces of older workers on the other side of the counter. Many are parents who rely on their full-time fast-food jobs to support themselves and their families. Instead of providing a “first work experience”, fast-food jobs are now a primary source of income for older, experienced workers.
The problem, once again, is corporations. Individual fast-food restaurants should not be the only battlefront in the fight for livable wages. We should demand that the mother-ship fast-food corporations let go of their greed, and lower their franchise fees and annual royalties.
The Heritage Foundation points its finger in the wrong direction: the responsibility for providing minimum wage fast-food workers with a livable wage falls on the corporations.
This article originally appeared in Campaign for America’s Future on September 10, 2014. Reprinted with permission. http://ourfuture.org/20140910/debunking-the-heritage-foundations-new-minimum-wage-myths-one-by-one.
About the author: Jiao (Kitty) Lan is a Roosevelt Fellow at the Campaign for America’s Future. She is a sophomore at Georgetown University, majoring in Political Economy and Financial Engineering and has taken an interest in Computer Science in her first two semesters. She has had several political internships, including one with Rep. Mike Honda and one with Sen. Dianne Feinstein. Her top three anything are Pops cereal, her two tiny yet vivacious Pomeranians, and traveling the world.
Friday, August 22nd, 2014
While it certainly seems that far-right extremists are waging an all-out war on working families and their rights, workers aren’t just defending themselves; they are fighting to expand their rights and achieving some significant gains. Here are 12 recent victories we should celebrate while continuing to push for even more wins.
1. AFSCME Sets Organizing Goal, Almost Doubles It: AFSCME President Lee Saunders announced that the union has organized more than 90,000 workers this year, nearly doubling its 2014 goal of 50,000.
2. Tennessee Auto Workers to Create New Local Union at VW Plant: Auto workers at Volkswagen’s plant in Chattanooga, Tenn., announced the formation of UAW Local 42, a new local that will give workers an increased voice in the operation of the German carmaker’s U.S. facility. UAW organizers continue to gain momentum, as the union has the support of nearly half of the plant’s 1,500 workers, which would make the union the facility’s exclusive collective bargaining agent.
3. California Casino Workers Organize: Workers at the new Graton Resort & Casino voted to join UNITE HERE Local 2850 of Oakland, providing job security for 600 gambling, maintenance, and food and beverage workers.
4. Virgin America Flight Attendants Vote to Join TWU: Flight attendants at Virgin America voted to join the Transport Workers, citing the success of TWU in bargaining fair contracts for Southwest Airlines flight attendants.
5. Maryland Cab Drivers Join National Taxi Workers Alliance: Cab drivers in Montgomery County, Md., announced their affiliation with the National Taxi Workers Alliance, citing low wages and unethical behavior by employers among their reasons to affiliate with the national union.
6. Retail and Restaurant Workers Win Big, Organize Small: Small groups of workers made big strides as over a dozen employees at a Subway restaurant in Bloomsbury, N.J., voted to join the Retail, Wholesale and Department Store Union. Meanwhile, cosmetics and fragrance workers at a Macy’s store in Massachusetts won an NLRB ruling that will allow them to vote on forming a union.
7. Minnesota Home Care Workers Take Key Step to Organize: Home health care workers in Minnesota presented a petition to state officials that would allow a vote on forming a union for more than 26,000 eligible workers.
8. New York Television Writers-Producers Join Writers Guild: Writers and producers from Original Media, a New York City-based production company, voted to join the Writers Guild of America, East, citing low wages, long work schedules and no health care.
9. Fast-Food Workers Win in New NLRB Ruling: The National Labor Relations Board ruled that McDonald’s could be held jointly responsible with its franchisees for labor violations and wage disputes. The NLRB ruling makes it easier for workers to organize individual McDonald’s locations, and could result in better pay and conditions for workers.
10. Workers Increasingly Have Access to Paid Sick Leave: Cities such as San Diego and Eugene, Ore., have passed measures mandating paid sick leave, providing workers with needed flexibility and making workplaces safer for all.
11. Student-Athletes See Success, Improved Conditions: College athletic programs are strengthening financial security measures for student-athletes in the wake of organizing efforts by Northwestern University football players. In addition, the future is bright as the majority of incoming college football players support forming a union.
12. San Diego Approves Minimum Wage Hike; Portland, Maine, Starts Process: Even as Congress has failed to raise the minimum wage, municipalities across the country have taken action. San Diego will raise the minimum wage to $11.50 an hour by 2017, and the Portland, Maine, Minimum Wage Advisory Committee will consider an increase that would take effect in 2015.
This blog originally appeared in AFL-CIO America’s Unions on August 20, 2014. Reprinted with permission.
Author’s name is Kenneth Quinnell. He is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars. Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History. His writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.
Saturday, November 2nd, 2013
Last month, Walmart CEO Bill Simon revealed rather cluelessly that the vast majority of Walmart workers, as many as 825,000 in the United States, earn less than $25,000 a year. The sum is so low the average worker for the country’s biggest employer is struggling to make ends meet. By matching its low prices with insultingly low wages, Walmart forces taxpayers to subsidize its workforce through social safety net programs.
Making Change at Walmart is running a new series that highlights how some of the retailer’s employees are scraping by on Walmart wages. Here are three of the stories they have shared so far:
Anthony Goytia: The 31-year-old father of three makes about $12,000 a year and relies upon MediCal and food stamps. Some of his teeth were removed because he couldn’t afford the dental work to save them. “I don’t need cable or a big house, but I shouldn’t have to resort to selling my plasma and participating in medical trials to be able to feed my kids,” Goytia said. “I have to live payday loan to payday loan.”
Patricia Locks: A 48-year-old single mother, who makes $19,000 a year, relies on low-income housing, food banks and food stamps to get by. She recently was forced to file for bankruptcy. “It’s depressing and scary. No one who works for one of the world’s largest and wealthiest companies should have to live like this,” said Locks. “I don’t think it’s asking too much to earn enough so I don’t have to rely on food banks and other assistance to survive. And that’s why I am going to keep fighting, because I want a better life for me and my daughter.”
John Paul Ashton: The 31-year-old father of two makes $20,000 a year and also relies upon food stamps and food banks. He walks 45 minutes to work with shoes that have holes in them. “When I first started at Walmart, I was told that it was a place where I could grow and have opportunities. I soon discovered that was not the case,” said Ashton. “People take being able to buy lunch for granted. I don’t need a fancy job, but what I do need is a job that allows me to provide for my family, speak up about working conditions and needing better wages without fear of retaliation, and hopefully have more than $2 in my bank account after I pay my bills.”’
More stories of Walmart workers scraping by on less than $25,000 per year are scheduled to be released every week at MakingChangeAtWalmart.
This article was originally printed on AFL-CIO on November 1, 2013. Reprinted with permission.
About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist whose writings have appeared on AFL-CIO, Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.
Friday, August 30th, 2013
New technology is keeping more and more workers stuck in low-wage jobs, and it’s society’s responsibility to make sure those jobs still have dignity and fair wages.
With robots taking over factories and warehouses, toll collectors and cashiers increasingly being replaced by automation and even legal researchers being replaced by computers, the age-old question of whether technology is a threat to jobs is back with us big time. Technological change has been seen as a threat to jobs for centuries, but the history tells that while technology has destroyed some jobs, the overall impact has been to create new jobs, often in new industries. Will that be true after the information revolution as it was in the industrial revolution?
In an article in The New York Times, David Autor and David Dorn, who have just published research on this question, argue that the basic history remains the same: while many jobs are being disrupted, new jobs are being created and many jobs will not be replaceable by computers. While there is good news in their analysis for some in the middle-class, their findings reinforce the need to organize workers in lower-skilled jobs to demand decent wages.
The authors’ research found that while routine jobs are being replaced by computers, the number of both “abstract” and “manually intensive” jobs increased. In their article in the Times, the authors describe the new jobs:
At one end are so-called abstract tasks that require problem-solving, intuition, persuasion and creativity. These tasks are characteristic of professional, managerial, technical and creative occupations, like law, medicine, science, engineering, advertising and design. People in these jobs typically have high levels of education and analytical capability, and they benefit from computers that facilitate the transmission, organization and processing of information.
On the other end are so-called manual tasks, which require situational adaptability, visual and language recognition and in-person interaction. Preparing a meal, driving a truck through city traffic or cleaning a hotel room present mind-bogglingly complex challenges for computers. But they are straightforward for humans, requiring primarily innate abilities like dexterity, sightedness and language recognition, as well as modest training. These workers can’t be replaced by robots, but their skills are not scarce, so they usually make low wages.
As the authors conclude, “This bifurcation of job opportunities has contributed to the historic rise in income inequality.”
When it comes to addressing this attack on the middle class, the authors offer some hope, but not for those low-wage workers. They argue that a large number of skilled jobs, requiring specialized training—although not necessarily a college education—will not be replaceable by computers. These include people who care for our health like medical paraprofessionals, people who care for our buildings like plumbers, people who help us use technology (I was chatting online just yesterday to get tech support) and many others. Because these jobs do require higher levels of skills, they should be able to demand middle-class wages.
But what about those housekeepers, delivery truck drivers and fast-food workers, like those who are taking actions around the country today against fast-food chains to demand better pay. The authors do not offer a path to the middle class for them.
If history is an example here as well, we should remember that lower-skilled work does not have to come with low pay. The workers who stood on assembly lines in the 1930s did not have a college education or years of specialized training; they fought for the right to organize unions and demanded high enough wages to support their families.
This Labor Day, as more and more workers are stuck in the growing number of low-wage jobs, causing enormous stress for their families while keeping the economy sluggish, we need to look to the examples of new ways of organizing workers who can not be replaced by technology. There’s the New York Taxi Workers Alliance, who organized drivers to successfully win living wages and a health and disability fund. Or the successful boycott of Hyatt Hotels, leading to an agreement with UNITE HERE to not fight organizing campaigns in their hotels.
We need to support organizing by modernizing our labor laws to account for the large number of workers not currently or adequately protected, the new ways that work is organized and the global economy.
The lesson from the Autor–Dorn research is that technology doesn’t have to destroy the middle class. What will destroy the middle class is our failure as a society to provide dignity to all workers. That’s what fast-food workers and their community-labor supporters are fighting for across the country.
This article originally appeared in The Next New Deal Blog on August 29, 2013, and was cross-posed on AFL-CIO Now on August 30, 2013. Reprinted with permission.
About the Author: Richard Kirsch is a senior fellow at the Roosevelt Institute, a senior adviser to USAction and the author of Fighting for Our Health. He was national campaign manager of Health Care for America Now during the legislative battle to pass reform.
Saturday, August 24th, 2013
WASHINGTON, D.C.—On the eve of a march to commemorate Dr. Martin Luther King’s “I have a dream” speech, labor and civil rights activists are calling on President Barack Obama to honor King with an executive order that would raise wages for as many as two million workers.
One of the most poignant calls came Wednesday from Alvin Turner, a veteran of the famous 1968 Memphis garbage workers strike. Recalling a recent face-to-face meeting with Obama, Turner said “he told me personally he was working hard for the little man. If he don’t sign, he’ll disappoint me badly.”
Turner and others are pressing for an executive order that would establish a “living wage” for workers whose employment is tied to federal government contracts, grants, loans, or property leases. Earlier this year, the labor-backed “Good Jobs Nation” campaign produced evidence that many fast food workers at government-owned buildings in Washington, D.C., are earning below poverty-level wages, and that the same problems extend to other workers whose jobs are tied to federal government action. A study earlier this year from the pro-labor group Demos estimated an executive order could raise the income of about two million low-wage workers nationwide.
Rep. Keith Ellison (D-Minn.) and other members of the Congressional Progressive Caucus are making the order a centerpiece of their pro-worker “Raise Up America” campaign launched in late June. The Change to Win federation—backed most notably by the Service Employees International Union (SEIU) and the Teamsters—is a partner in the Progressive Caucus campaign.
Such an order would not require a vote in Congress or any cooperation from the anti-labor Republicans, noted Mike Casca, a spokesperson for Ellison. The president has sole discretion on whether to issue such orders, and pressure is rising on Obama to do so from prgressive Democrats, labor unions, faith-based groups, and others, Casca said.
If Obama fails to sign the executive order, “the federal government is complicit in the perpetuation of poverty,” charged Bill Lucy, a retired executive of American Federation of State, County and Municipal Employees (AFSCME) union, who joined Turner Wednesday for a public panel discussion of the issue. A similar executive order was signed by President Lyndon Johnson in 1965, he added, so “it’s not like it’s anything new.”
Radio talk-show host Joe Madison said marchers at the Aug. 24 events to honor the 50thanniversary of King’s speech will hear repeated calls from the speaking platform for an executive order. “We will do a disservice to those (original 1963) speakers—to Dr. King, to A. Philip Randolph—if we do not demand” presidential action on an executive order,” Madison said. Without a demand for action “it’s just a ceremony, and we don’t need any more ceremonies,” he said.
“King was at the intersection of the civil rights and labor movements,” commented Moshe Marvit, a lawyer, author and labor activists. King would have understood that “we need bold action from the president in the form of an executive order” to begin raising wages across broad sectors of the economy, Marvit said.
Change to Win spokesperson Paco Pabian told Working In These Times that there has been no unequivocal response from the White House yet on calls for the living wage executive order. There have been reports that Ellison asked Obama directly for such an order at a June 6 meeting with members of the Congressional Black Caucus, and that Del. Eleanor Holmes Norton (D-D.C.) had made a similar request, he said. In both cases, lawmakers were told that the matter would be reviewed by White House staff and that a definitive answer would be forthcoming sometime soon, Fabian said.
The push for the executive order gained an important backer on August 12, Fabian noted, when the New York Times published an editorial endorsing the idea.
“Many laws and executive actions from the 1930s to the 1960s, require fair pay for employees of federal contractors. Buth over time, those protections have been eroded by special-interest exemptions, complex contracting processes and lax enforcement. A new executive order could ensure that the awarding of contracts based on the quality of jobs created, challenging the notion that best contract is the one with the lowest labor costs,” the New York Times editors wrote.
Full disclosure: AFSCME is a web sponsor of In These Times.
This article originally appeared on In These Times on August 24, 2013. Reprinted with permission.
About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.
Monday, August 12th, 2013
At a time of year when many workers are taking family vacations, uranium workers at Honeywell’s plant in Metropolis, Ill. won’t have that option. On July 27, the company announced a vacation freeze. United Steelworkers Local 7-669, which represents workers at the plant, claims that the decision is just another salvo in a three-year-long battle by Honeywell to bust the union.
Honeywell is currently in the process of rehiring several hundred operations workers at the uranium plant who were laid off in July of 2012 when the plant shut down for earthquake-safety improvements requested by the Nuclear Regulatory Commission.
Earlier this year, Honeywell began slowly rehiring the laid-off workers—both hourly union employees and non-union salary employees—to restart the plant. Now all but 21 of the 200 union employees have been rehired as the plant moves toward full operationality. But instead of rehiring the final 21 union workers, Honeywell is proceeding short-staffed and calling in workers on their days off to make up the gap.
In order to put pressure on the company to rehire the 21 laid-off union members, some union employees are refusing to work any overtime (and passing up the time-and-half pay). In response, Honeywell announced that because of the staffing shortage, no workers can take a vacation this summer.
In a July 27, 2013 email to employees, Honeywell Metropolis Operating Manager Jim Pritchett wrote:
Effective immediately, all vacations are cancelled and no further vacations are to be granted in operations including individuals’ days—that includes all hourly and salaried staff. The purpose is to assure we are staffed to support operations and to continue to get the remaining units on line so we can support our customers. … I am disappointed it has gotten to this but we have no choice due to employees not responding to call ins and taking care of their responsibilities…. This vacation freeze will be lifted as soon as the business needs of the plant are being effectively met by people coming when they are called.
The union speculates that Honeywell has an ulterior motive for not hiring the remaining 21 workers: It doesn’t want to rehire Local 7-669 President Stephen Lech. Under the union contract, Honeywell is obligated to rehire all of the laid-off union employees according to a mutually agreed upon list developed according to workers’ qualifications and seniority. The next person on the list is Lech.
“It’s directly targeting me for my work as union president,” says Lech, who thinks that Honeywell is trying to send a message about the length that the company is willing to go to crush the union.
The union says that instead of following the list, Honeywell has told the final 21 workers that they must compete against outside applicants and reapply for their jobs as if they were new hires directly off the street.
“It’s a violation of the contract,” Lech says. “How can Honeywell do it? Well, Honeywell does whatever they want.”
“It will take six months before the case even gets before an arbitrator and another six months before the arbitrator rules,” he says.
Workers are refusing overtime in the hopes that they can resolve the issue sooner. Many were planning family vacations and were outraged by the vacation moratorium.
“It’s a morally bankrupt company that punishes their employees for staffing shortages it created out of spite,” reads a text message to Working In These Times by one Honeywell employee who wished to remain anonymous for fear of being fired. “Two years ago we took their lousy contract and they’re still kicking us.”
Honeywell did not respond to request for comment for this piece.
Lech says that despite being laid off, he is undeterred from his work for the union.
“This absolutely will not stop me from doing my job,” says Lech. “Heck, I got more time than ever to work as union president.”
This article originally appeared on Working In These Times on August 12, 2013. 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.
Friday, August 9th, 2013
What started out last fall as a one-day walkout at fast-food restaurants to protest poverty-level wages and stand up for basic human dignity has transformed into a movement that has captured the public interest.
I’ve been privileged, especially in recent weeks, to talk to institutional partners, policymakers and media about why low-wage workers across the country are risking their jobs and forgoing a much-needed day’s pay to work toward a better future for themselves and their families. We will be better off when hardworking people have enough money in their pockets to put back into their communities and generate more jobs, and SEIU members are proud to back these workers in their pursuit of economic justice and better lives for their families.
I traveled to New York City on Wednesday, to talk to Comedy Central host Stephen Colbert about the fast-food strikes. How in the world did this happen? I told Kendall Fells, an organizer from Fast Food Forward, it is because of the courage of the strikers, such as Shay Kerr and Shakira Campbell.
Shay has worked at McDonald’s in East Flatbush, N.Y., for six months. She earns minimum wage and, because sometimes her hours are cut for no reason, she can’t rely on a set pay every week. Since she cannot make ends meet on her wages, she has been bouncing around shelters. She’s fighting for a union so she can make a better life for herself and her 6-year-old son. Shakira is leading an action tomorrow at her store to be put back on the schedule. Their stories echo stories I’ve heard from workers all around the country.
Shakira, Shay, and many others who I have had the privilege of meeting in recent months are helping the public understand that, contrary to what some believe, these positions aren’t being filled by teenagers. Anyone who thinks they are is nostalgic for a time that no longer exists.
More than 4 million people work in the food service industry. Their average age is 28. Many of these workers have children and are trying to support a family. The median wage (including managerial staff) of $9.08 an hour still falls far below the federal poverty line for a worker lucky enough to get 40 hours a week and never have to take a sick day. According to the National Employment Law Project, low-wage jobs comprised 21 percent of recession losses, but 58 percent of recovery growth in the last few years.
This means middle-class jobs are disappearing while low-wage jobs are growing. If we simply accept this as fact, then the divide between the haves and the have-nots will only grow worse. And that is just wrong.
We cannot build a strong, equitable economy on low-paying jobs. Corporate profits are at an all-time high. McDonalds earned $5.5 billion just last year; other fast-food restaurants and retail chains are similarly profitable. They can afford to raise wages.
Americans have a long history of sticking together to fight for something better. SEIU can be proud of how we are fighting on so many fronts, from winning commonsense immigration reform, to delivering on the promise of the Affordable Care Act, to telling our elected officials to invest in vital public services, and to organizing in various sectors to make sure workers have a voice in the workplace. All of our members are involved in these campaigns to help workers strengthen and grow our union. As we do it, we know we have to reach out to the growing service sector of low-wage jobs in retail and fast food.
We are united to make a path to power for all workers; winning a just society; and leaving the world a better and more equal place for next generations to come.
This article originally appeared on SEIU blog on August 8, 2013. Reprinted with permission.
About the Author: Mary Kay Henry is the International President of the Service Employees International Union (SEIU).
Thursday, August 8th, 2013
While the average McDonalds employee in the United States makes just above the $7.25 minimum wage, that story is different in other countries. As Jordan Weissmann reports at The Atlantic, the minimum wage for full-time adult workers in Australia is $14.50 and McDonalds employees just negotiated a 15 percent raise by 2016. Yet the company has about 900 locations in the country.
Meanwhile, its profit margins at company-owned restaurants are higher in Europe than in the U.S. despite many countries there having a higher minimum wage. France’s minimum is about $12 an hour, and yet there are more than 1,200 locations there.
Residents of other countries pay more for their Big Macs, in part at least to make up for those extra costs, but the increase in prices is not drastic. Australians paid an average of $4.62 in U.S. dollars for a Big Mac in July and it cost $4.66 in the eurozone, while Americans paid $4.56. That’s a difference of about 6 to 10 extra cents, which would mean raising Big Mac prices a little over 2 percent in the U.S. to come equal with those in Europe.
Higher prices are related to the fact that the company does spend more on the cost of labor in other countries. In the U.S., it spends about 25 percent of its expenses on workers at the locations it owns, and franchises usually assume labor costs will take up about 30 to 35 percent. Worldwide, those costs have been found to come to closer to 45 percent of expenses. But the company reported nearly $5.5 billion in net income overall last year, up from about $2.4 billion in 2007, with more revenues coming from Europe than the U.S.
Australian locations have other ways to keep labor costs low, like exploiting a loophole that only requires an $8 wage for teenagers. Weissmann also reports that the company likely gives its higher paid European employees more responsibility and so ekes out more productivity from those workers. While productivity has risen in the U.S., wages haven’t.
But it’s clear, even to the company itself, that its American wages are not enough to get by on. It released a sample budget for employees that suggested paying nothing for heat, getting a second job, and spending just $20 a month on health care. While it claims to be an above minimum wage employer in the U.S., its average wages are mere cents more.
The inability to get by on its low wages has sparked pushback from workers across the country, with fast food workers striking in nine different cities. They are calling for a $15 minimum wage, the same as Australia’s, which is higher than President Obama’s $9 an hour proposal and Congressional Democrats’ of $10.10 an hour.
This article originally appeared on ThinkProgress on August 6, 2013. Reprinted with permission.
About the Author: Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman.
Tuesday, July 30th, 2013
Early this morning, fast food workers in New York, St. Louis and Kansas City, Mo. launched strikes demanding both a wage increase to $15 an hour—from a median of $8.94—and the right to form unions without employer interference.
Later this week, workers in Chicago, Milwaukee, Detroit and Flint, Mich., will also go out on strike, expanding the reach of the movement of fast food workers (and, in Chicago, retail workers) that started with protests in New York and Chicago last year and grew into a series of one-day strikes throughout 2013. In Flint and Kansas City, strikes are taking place for the first time; in other cities, strikes will expand to target new franchises.
Organizers anticipate that thousands of fast food workers will join in the strikes, which coincide with heightened public awareness of wage stagnation and economic inequality. Some strikers may stay out longer than a single day.
The fast food strikes are part of a broader movement by low-wage workers for higher pay and union representation that has caught fire over the past year.
Targets include a range of employers, including Wal-Mart, federal subcontractors, warehouses, retail stores and car washes. Workers have typically formed loose local organizing committees that, with financial and logistical support from unions and community groups are growing into national networks, most prominently OUR Walmart.
This low-wage service and retail worker movement has tapped into a vein of discontent. But it has also created hopes for change through the fledgling campaign’s remarkable success with imaginative tactics.
“I’ve always dreamt about a moment like this,” says Terrance Wise, a 34-year old fast food worker and father of three in Kansas City. “But what am I going to do by myself? There’s strength in numbers. It’s a beautiful thing, a positive thing, that’s going to change this country. … My job should be a good job.”
Although he works long hours at his two part-time jobs—8 years at Burger King (now for $9.35 an hour) and 2 years at Pizza Hut (for $7.45)—and his wife also has a low-wage job as a home healthcare aide, Wise struggles to make ends meet. He recently lost his house to foreclosure and had to move in with relatives.
Overall conditions in the industry have not changed as a result of the movement, but some workers have won improvements. In Chicago, organizers say, workers at some McDonald’s and Macy’s locations received modest pay increases after the April strike. Dock worker Andrew Little, 26, said that managers raised pay from $9 to $11.26 an hour for him and his coworkers after they participated in the Chicago strike.
“I was honestly shocked,” he said. “We told ourselves it wouldn’t happen overnight. My first thought was the strike really did have an effect.” But Little remains focused on his “main goal”: to form a union. “We want both a raise and to sit down with management and talk about how we can better serve the store and the store can better serve us,” he says.
As happy as he is with his raise, he is especially pleased that no striker was fired or disciplined. “That’s the best part,” he said. Like other strikers, he returned to work accompanied by supporters—a dozen community representatives, clergy and organizers—who insisted that he should not suffer any retaliation. Workers have a real fear of being fired, Little says, but that can be prevented “if enough of us all stand up and demand respect.”
Not all employers responded positively, at least not at first. After strikes in St. Louis in May, some participating workers lost hours, pay, shifts or promised transfers, according to Jobs With Justice leader Rev. Martin Rafanan. But Jobs With Justice delegations went to the restaurants and talked with managers, corporate representatives or even, in one case, the corporate general counsel. “All of the cases were resolved in favor of the workers by the well-coordinated responses of community leaders,” he says.
There’s only one documented case of a striker being fired during this year’s wave of fast food job actions: Greg Reynoso, from a Brooklyn Domino’s. Fast Food Forward, the New York branch of the movement, responded by making his employer the first target of the current strike. On Friday, organizers report, 14 of 15 Domino’s delivery drivers did not show for work, effectively shutting down the operation on its busiest night. Meanwhile, roughly 60 supporters, including U.S. Rep. Nydia Velázquez (D-N.Y.), gathered outside the Domino’s to protest Reynoso’s dismissal.
The actions come at a time when issues of inequality and the minimum wage have taken the national stage. President Obama is on tour giving high-profile speeches on economic inequality, and a Hart Research poll shows that 80 percent of the public supports the proposal by Sen. Tom Harkin (D-Iowa) and Rep. George Miller (D-Calif.) to raise the federal minimum wage from $7.35 to $10.10 in three steps.
Fast-food workers’ poverty wages were spotlighted last week when everyone, from Stephen Colbert to The Atlantic, made sport of McDonald’s for unintentionally debunking its own claims that it provides a living wage. A model budget McDonald’s created for its workers recommended holding two jobs (which is tricky with fast-food jobs, which require workers to be available on-call) and included nothing for heating, far less for health insurance than the cheapest McDonald’s plan, and other fantasies. Implicitly, the budget showed what strikers know: it’s hard to make ends meet on less than $15 an hour.
This article originally appeared on Working in These Times on July 29, 2013. Reprinted with permission.
About the Author: David Moberg is a senior editor of In These Times, and has been on the staff of the magazine since it began publishing in 1976.
Wednesday, July 17th, 2013
As we wait for Washington, D.C., Mayor Vincent Gray to decide whether to sign or veto the Large Retailer Accountability Act passed by the city council, business lobby groups are insisting that DC’s push to make big box stores pay a living wage of $12.50 an hour is an isolated occurrence, not a sign of things to come:
“This fight in D.C. is being driven by local D.C. politics more than a national agenda,” David French, senior vice president for government relations at the National Retail Federation, told POLITICO.Justin Wilson of the business-funded Center for Union Facts said he believes no national movement will come from the D.C. battle. “I don’t foresee (a national movement) happening,” Wilson said.
Right, and the fight that kept Walmart out of Brooklyn last year was driven by local New York City politics, and the fight to keep Walmart out of Chinatown in Los Angeles is driven by local Los Angeles politics, and the failed effort—passed by the city council and vetoed by then-Mayor Richard Daley—to institute a similar large retailer living wage in Chicago as Walmart was moving in was driven by local Chicago politics. Point being, as Walmart tries to move into cities, the politics are different from its traditional suburban and rural locations. So the whole “just an isolated thing, not going to be replicated anywhere” insistence rings a little hollow.
That’s not to say Walmart doesn’t have the power to push itself into many cities, as it did Chicago. But the opposition is a lot more organized. And with good reason. Trying to move into D.C., Walmart went on a charm offensive, donating millions of dollars to local charities and talking up the great jobs it would allegedly create. But:
[Living wage organizer Mike] Wilson says that activists and community leaders met with Wal-Mart representatives soon after the company announced its intentions to move into D.C., but that it became clear Wal-Mart had no interest in negotiating any kind of binding agreement concerning workers’ wages or benefits. Wal-Mart may have told a group of church leaders it would pay $13 an hour, but on other occasions, the company cited its average pay of $12.78 to activists—a number that made Wilson and others suspicious. That figure, which excludes part-time workers and includes department managers, ishighly disputed.
Walmart can’t be trusted, so Walmart faces a fight. In fact, Walmart drives wages down for workers at other retailers in areas where Walmart stores open, so a $12.50 minimum wage at Walmart and other large retailers in Washington, D.C., would help protect wages at existing smaller stores.
Tell Washington, D.C., Mayor Vincent Gray that his city’s big box workers deserve a living wage.
This article was originally posted on The Daily Kos on July 16th 2013. Reprinted with permission.
About the Author: Laura Clawson is the labor editor at the Daily Kos.