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.
Here comes the news that Burger King has engineered a lower fat, lower calorie fry. I don’t really care and five will get you ten that whatever they did will make french fries even more fattening and unhealthy . But what got my goat in the article was this:
Roughly a decade ago, McDonald’s began using a soy-corn blend of fats instead of beef tallow to cook its fries in an effort to reduce the trans fats that contribute to higher cholesterol.
What actually happened was this:
At the behest of the Center for Science in the Public Interest that delicious, wholesome (relatively wholesome) beef tallow was replaced with partially hydrogenated vegetable oil. That campaign started in 1984 and was victorious in 1990 when the chains abandoned tallow in favor of trans fat laden partially hydrogenated oil.
NPR’s Dan Charles:
But did you know that in the 1980s, health activists actually promoted oils containing trans fats? They considered such oils a healthy alternative to the saturated fats found in palm oil, coconut oil, or beef fat. In 1986, for instance, the (CSPI), described Burger King’s switch to partially hydrogenated oils as “a great boon to Americans’ arteries.”
It wasn’t until 1993, after stampeding the fast food industry into greatly multiplying the nation’s consumption of what may be the single most deadly ingredient in our food supply, the CSPI reversed course and began campaigning against trans fats.
Here’s The Harvard School of Public Health on the dangers posed by trans fats:
Today we know that eating trans fats increases levels of low-density lipoprotein (LDL, “bad” cholesterol), especially the small, dense LDL particles that may be more damaging to arteries. It lowers levels of high-density lipoprotein (HDL) particles, which scour blood vessels for bad cholesterol and truck it to the liver for disposal. It also promotes inflammation, an overactivity of the immune system that has been implicated in heart disease, stroke, diabetes, and other chronic conditions. Eating trans fat also reduces the normal healthy responsiveness of endothelial cells, the cells that line all of our blood vessels. In animal studies, eating trans fat also promotes obesity and resistance to insulin, the precursor to diabetes.
This multiple-pronged attack on blood vessels translates into heart disease and death. An analysis of the health effects of industrial trans fats conducted by researchers with the Harvard School of Public Health Department of Nutrition indicates that eliminating trans fats from the U.S. food supply could prevent up to 1 in 5 heart attacks and related deaths. That would mean a quarter of a million fewer heart attacks and related deaths each year in the United States alone.
Michael Jacobsen’s obsession with saturated fat caused the organization to tout the benefits of partially hydrogenated oils well after their dangers had been established. This didn’t stop them from changing course when the dangers of trans fats had been exposed without apology or acknowledgement. The history of trying to engineer low fat, low calorie foods that make us fatter and sicker is a long one, but CSPI has been there every step of the way. The trans fat french fry debacle was just the pinnacle of their blundering.
Mary Enig at The Weston Price Foundation traces the twists and turns of CSPI’s position on saturated fats and partially hydrogenated oils:
By 1988, the adverse effects of trans fats were well known. The article points out that stearic acid has no effect on blood cholesterol levels, yet CSPI continued to accuse beef tallow, which is rich in stearic acid, of “raising cholesterol and increasing the risk of heart disease.” As for the tropical oils, they do not need to be hydrogenated!
Blume was at it again in March 1988 with another article, “The Truth About Trans .” “Hydrogenated oils aren’t guilty as charged. . . . All told, the charges against trans fat just don’t stand up. And by extension, hydrogenated oils seem relatively innocent.. . . . As for processed foods, you’re better off choosing products made with hydrogenated soybean, corn, or cottonseed oil. . . ” This article was widely disseminated; Michael Jacobson provided it as a handout to members of the Maryland Legislature during hearings when the University of Maryland group tried to introduce labeling of trans fatty acids in the State.
But by 1990, CSPI could no longer defend the indefensible. In October of that year, Bonnie Liebman, CSPI Director of Nutrition, published an article “Trans in Trouble” which referred to recent studies by Dutch scientists showing that trans fats raised cholesterol. “That’s not to say trans fatty acids are artery-cloggers,” she wrote, “. . . the fats in our foods may affect cholesterol differently than those used in the Dutch experiment. . . . The Bottom Line. . . Trans, shmans. You should eat less fat. . . Don’t switch back to butter. . . use a soft tub diet margarine. . . . ”
. . . The revisionism began in December 1992 when Ms. Liebman wrote: “We’ve been crying ‘foul’ for some time now, as the margarine industry has tried to convince people that eating margarine was as good for their hearts as aerobic exercise. . . . And we warned folks several years ago that trans fatty acids could be a problem. . . . That’s especially true now that we know that trans fatty acids are harmful, but we don’t know how much trans are in different foods.” Of course, CSPI had issued no such warning, but had been defending trans fats for more than five years. And there’s no apology for falsely demonizing traditional fats. “Don’t switch back from margarine to butter,” wrote Ms. Liebman, “. . . try diet or whipped margarine. . . use a liquid margarine.”
In November 1993, Bonnie Liebman coauthored an article with Margo Wootan called “The Great Trans Wreck,” which would have been in preparation well before Michael Jacobson’s infamous press conference, in which they asked, “Why do companies love hydrogenated fat if it’s so unhealthy? . . . . despite the claims on many packages, most companies switched not to vegetable oil, but to vegetable shortening. And that created a problem.”
You can read the whole sorry tale of hubris and revisionism at the Weston Price Foundation. The fruits of that revisionism can be seen in the statement above from The New York Times.