SPECIAL MAY DAY EDITION | Volume One: Fast Food
The Minimum Wage Worker Strikes Back
Sarah Kendzior | Medium.com
At 24, Patrick is a fast food veteran. Over the past eight years, he has worked at seven different franchises. He started out at America’s Incredible Pizza Company at the NASCAR Speedpark in St. Louis, Missouri, the city where he grew up and still lives. He thought a fast food job would keep him on his feet while he figured out his life. He did not know it would become his life. Now he is captive to the hustle, always moving and going nowhere.
“You pick up something easy to get stable,” he says. “And on your quest to get stable, you end up getting stuck. You either fall or you stay where you are. Or you fall staying where you are.”
How One Protest Turned Into a Fast-Food-Worker Movement
Kristina Bravo | TakePart | 4 April 2014
“So we started talking to workers at fast-food places and asking them if they wanted to organize for higher pay,” New York Communities for Change’s Jonathan Westin said in an emailed statement. “There was not a worker we talked to who wouldn’t sign onto the campaign.”
The movement became known as Fast Food Forward. It held its first citywide protest in 2012, and the movement has since spread across the country. The federal minimum wage still stagnates at $7.25 per hour, a rate that hasn’t budged since 2009. But a lot of progress has been made on the state level. As of Jan. 1, 2014, twenty-one states exceed the federal minimum wage; others are expected to follow suit. Here’s a look back at the American fast-food workers’ fight for livable pay.
Fast-Food CEOs Make 1,200 Times As Much As One of Their Workers—and They Want to Keep It That Way
Zoë Carpenter | The Nation | 24 April 2014
David Novak is the chief executive of Yum! Brands, the parent company that runs Pizza Hut, Taco Bell and KFC. Last year, while Yum! Brands and other restaurant companies lobbied against raising the minimum wage, Novak made at least $22 million—more than 1,000 times what the average fast-food worker makes in a year. In return for paying him so much, Yum! got a tax break.
The National Restaurant Association, which represents Yum! and other restaurant companies, is expected to launch a lobbying blitz in Washington next week against a minimum wage increase. For years the restaurant industry has fought to keep the wage floor low, all while rewarding its CEOs with increasingly large pay packages. As a result, the food industry is now the most unequal sector in the American economy. Thanks to a tax loophole that encourages companies to raise “performance pay” for executives, taxpayers are effectively subsidizing the imbalance.
While inequality between low-level workers and CEOs manifests in all areas of the economy, a new report from Demos concludes that the gap within the food industry is exceptional. Between 2009 and 2012 the CEO-to-worker pay ratio in food services and accommodation was about twice as large as most other sectors. In 2012, fast-food CEOs earned 1,200 times as much as the average employee.
Maybe you’ve even read about the wage theft lawsuits that have been filed against McDonald’s and Taco Bell, or the recent settlements in New York State against McDonald’s, Pizza Hut and Domino’s Pizza that have led to payments to employees of more than $2 million.
But, much in the way that Thomas Piketty’s book Capital in the Twenty-First Century lays out the hard data backing up everything we’ve believed about the reality of vast income inequality in America, a trio of new reports confirms with solid statistics what we’ve suspected about the fast-food industry — that those in charge are gobbling up the profits voraciously while their workers are forced into public assistance. What’s more, our tax dollars are subsidizing both the fast-food poor who need the help and the fast-food rich who don’t.
First, a recent data brief from the National Employment Law Project (NELP) notes, “Lower-wage industries accounted for 22 percent of job losses during the recession, but 44 percent of employment growth over the past four years. Today, lower-wage industries employ 1.85 million more workers than at the start of the recession.” In other words, as The New York Times more succinctly put it, “The poor economy has replaced good jobs with bad ones.”
Subway leads fast food industry in underpaying workers
Annalyn Kurtz | CNN Money | 1 May 2014
McDonald’s gets a lot of bad press for its low pay. But there’s an even bigger offender when it comes to fast food companies underpaying their employees: Subway.
Individual Subway franchisees have been found in violation of pay and hour rules in more than 1,100 investigations spanning from 2000 to 2013, according to a CNNMoney analysis of data collected by the Department of Labor’s Wage and Hour Division.
Hamburgled: Nine Out Of Ten Fast Food Workers Have Experienced Wage Theft
Alan Pyke | Think Progress | 2 April 2014
A new poll finds that 89 percent of fast food workers nationwide say they experience wage theft. That means that nine out of every ten fast food workers doesn’t get the pay they earned, according Hart Research Associates’ findings. The most common violation, workers report, is off-the-clock work. About a quarter of those surveyed had worked over 40 hours in a week on some occasions, and half of that group said they didn’t get overtime pay for those hours.
The poll coincides with testimonials from two former McDonald’s managers who say these sorts of illegal labor practices were routine in their stores for years.