Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘working’

Wendy's Franchise Cutting Worker Hours to Avoid Obamacare, Despite Backlash to Other Chains

Tuesday, January 8th, 2013

An Omaha, Nebraska, Wendy’s franchise owner is joining the list of restaurants vowing to cut worker hours rather than have them qualify for employer-provided health coverage under Obamacare. That’s endangering the livelihoods of around 100 workers who are having their hours cut (managers, of course, are remaining full-time):

The company has announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, Vice President of Operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can’t afford to stay in operation and pay for everyone’s health insurance. There are 11 Wendy’s restaurants in the metro. “It has a huge effect on me and pretty much everybody that I work with,” says [hourly worker T.J.] Growbeck, who understands the reasoning and says other part-timers at other fast-food restaurants are facing the same problem. “I’m hoping that I can get some sort of promotion because then I would get my hours, but everybody is shooting for that because of the hours being cut.”

This Wendy’s owner has apparently not learned the lesson of Olive Garden and Red Lobster parent company Darden Restaurants, Papa John’s, or the Denny’s franchise owner who made similar plans, only to have Darden’s profits drop 37 percent in the wake of those threats, Papa John’s suffer in a brand reputation survey, and the CEO of Denny’stell the franchise owner to quit making the chain look bad.

And all of these threats to workers’ livelihoods are coming over what would be tiny increases if the costs were passed directly to customers. When Papa John’s CEO John Schnatter was trying to really scare people, he said his chain would pass along a 10 to 14 cent increase in the cost of a pizza—less than $22 a year if you ate Papa John’s three times every single week. But when Forbes‘ Caleb Melby did the math on Schnatter’s claims, it worked out to less than 5 cents per pizza. Mind you, all of the wailing these chain executives and franchise owners do about how they can’t afford health care is suspect to begin with. But when they’re not willing to contemplate even the smallest price increases rather than cutting already poorly paid workers down below 30 hours a week and risking what’s now been shown to be significant public relations costs, that’s a clear statement that this isn’t some kind of pure, rational business decision. It’s an ideological stance against anything that might benefit the low-wage workers on whom the fast food industry relies.

This post was originally posted on The Daily Kos – Labor Blog on January 8, 2013. Reprinted with Permission.

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Exploited Filipino Teachers in Louisiana Win Historic Court Decision

Thursday, December 20th, 2012

Kenneth Quinnell

 

Just in time for yesterday’s celebration of International Migrants Day, a federal court jury ruled on Monday that Universal Placement International of Los Angeles and its owner, Lourdes Navarro, must pay $4.5 million to 350 Filipino teachers who were forced into exploitative contracts. According to the AFT, the Filipino teachers were brought to Louisiana after Hurricane Katrina and taught in public schools under H-1B guest worker program. This became the first positive jury verdict in a federal labor trafficking case brought forth by workers (as opposed to the government) involving workers who are not domestic workers. It is a clear example that workers can fight back against corporate greed and that, when allies join forces on behalf of working families, victories can be achieved.

The Filipino teachers began arriving in Louisiana in 2007 and most paid Universal Placement about $16,000 to find the jobs, AFT reported. Almost all of them had to borrow money to pay the placement fees. The loans were then charged 3% to 5% interest per month and recruiters took away their passports and visas until they paid off the loans. Many of the teachers were forced to give away 10% of their second-year salaries as well. Those who didn’t take the one-sided contract were threatened with the loss of their sizable investment and potentially being sent home.

The contracts were later ruled illegal and a class-action lawsuit was filed on behalf of the teachers by AFT, the Southern Poverty Law Center (SPLC) and Covington & Burling, a law firm. AFT President Randi Weingarten lauded the ruling:

This groundbreaking verdict affirms the principle that all teachers working in our public schools must be treated fairly, regardless of what country they may come from. The outrageous abuses provide dramatic examples of the extreme exploitation that can occur, even here in the United States, when there is no proper oversight of the professional recruitment industry. The practices involved in this case—labor contracts signed under duress and other arrangements reminiscent of indentured servitude—are things that should have no place in 21st century America.

This case is part of a larger pattern of American companies exploiting migrant workers in the teaching profession. AFT investigated the practices in a 2009 report, Importing Educators: Causes and Consequences of International Teacher Recruitment. AFT proposed a series of solutions to the problem:

To prevent such egregious abuses in the future, the AFT is calling for federal, state and local governments to take steps to monitor the hiring and treatment of overseas-trained teachers. In addition, the union recommends:

  • Developing, adopting and enforcing ethical standards for the international recruitment of teachers.
  • Improving access to the government data necessary to track and study international hiring trends in education.
  • Fostering international cooperation to protect migrant workers and mitigate any negative impact of teacher migration in their home countries.

This post was originally posted on AFL-CIO NOW on December 19, 2012. Reprinted with Permission.

About the Author: Kenneth Quinnell is a senior writer for AFL-CIO, and a former precinct committeeman in the Leon County Democratic Party. He is a former vice chair of the Florida Democratic Party’s Legislative Liaison Committee, and during the 2010 election, through the primary, Kenneth Quinnell worked for the Kendrick Meek campaign. He has written for Think Progress, AFSCME and for OurFuture.org on Social Security.

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