When Henry Ford realized it was good business to pay employees enough to buy the products they built, it was a breakthrough, not only because the idea challenged the reflex to pay as little as possible, but because the product was a car. He was talking real bucks.
McDonald’s has mislearned the lesson.
In response to escalating protests by McDonald’s employees calling for higher wages and the right to form a union without retaliation, McDonald’s chief executive, Don Thompson, defended the company at the annual meeting on Thursday, saying that McDonald’s pays a competitive wage.
But what constitutes “competitive” in the fast-food industry is precisely the problem. Hourly pay averages about $9. The low pay is possible in part because employers rely on taxpayers to subsidize it through public assistance and on non-unionized workforces to swallow it. The competitive fast food wage, in short, is not enough to live on.
Mr. Thompson presumably knows that. But he is paid not to understand what the protestors are demanding because his own pay is based on profits that are derived in part by keeping worker pay low.
Of course, if the political economy were functioning as it is supposed to – with Congress imposing reasonable boundaries on businesses, markets and the economy – workers wouldn’t have to get their bosses to understand what it’s like to live on $9 an hour, because Congress would make sure that no one had to.
The McDonald’s workers are asking for $15 an hour. That sounds like a lot compared to the current minimum wage of $7.25 an hour and compared to the Democratic proposal to raise the minimum to $10.10. But it’s actually closer to where the minimum wage would be today if it had kept pace over the years with growth in labor productivity.
McDonald’s workers are not asking for too much. Democrats are asking for too little and Republicans won’t even go along with that.
By: Teresa Tritch, Taking Note, The Editors Blog, The New York Times, May 23, 2014
May 24, 2014
Posted by raemd95 |
Minimum Wage | Congress, Don Thompson, Fast Food Industry, Henry Ford, Labor, McDonald's, Poor and Low Income, Poverty, Unions |
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A few words about the McBudget.
Perhaps you’ve heard of it. As fast-food workers around the country protest for higher wages, we learn that McDonald’s offers advice to help them live on the wages they make that, while not technically bupkes, do amount to a paycheck you can pretty much have the driver cash for you on the bus ride home. In December, for example, Bloomberg profiled a Chicago man who, after 20 years with the burger giant, earns $8.25 an hour — and doesn’t get 40 hours a week. This, as McDonald’s CEO Don Thompson pulled down, according to the Wall Street Journal, a compensation package worth $13.8 million last year.
Anyway, Mickey D’s isn’t blind to the difficulties of french fry makers and drive-through order takers getting by on not-quite-bupkes. It partnered with Visa on a website that includes a sample budget showing how you can live reasonably well on next to nothing.
The impossibility of doing so has been attested to by everyone from writer Barbara Ehrenreich in her book Nickel and Dimed to noted obstetrician Cliff Huxtable, in that episode of The Cosby Show where he uses Monopoly money to teach young Theo the value of a good income. It has also been attested to by the people trying to do it. But all that notwithstanding, the McBudget insists it can be done.
It envisions monthly take-home pay of $2,060 from working two (!) jobs. Out of that, you pay $600 for rent, $150 for a car note, $100 for insurance (home and auto), $100 for cable and phone, $90 for the electric bill, $20 for health insurance, etc. You save $100 a month and have $750 to play with — if, by “play,” you mean pay for clothing, child care and water. Also, gasoline, maintenance and repair for the 1997 junkmobile you’re able to buy for $150 a month. Oh, and food. Can’t forget food.
As you might expect, the McBudget is mildly controversial. Washington Post blogger Timothy B. Lee called the figures “realistic” and praised McDonald’s for “practical” advice. This seems to be a minority opinion. ThinkProgress, the left-leaning website, called the budget “laughably inaccurate.” Stephen Colbert skewered the company, saying a $20 health insurance premium will buy you “a tourniquet, a bottle of Night Train and a bite stick.” Writing for the Wall Street Journal, columnist Al Lewis suggested that McDonald’s $13.8 million man show us how it’s done by volunteering to live on the McBudget.
The most vexing thing about that budget is its condescension. Take it from this welfare mother’s son: If there’s one thing poor people do not need, it is lessons in how to be poor. To the contrary, you will never meet anyone who can wring more value from a dollar.
We’re talking every trick of layaway and two-day-old bread, coupon clipping and off-brand buying, Goodwill shopping, Peter robbing, Paul paying and plain old going without. You ever hear of a jam sandwich? That’s when you “jam” two pieces of bread together and call it lunch. Heck, if you handed the federal budget over to a couple welfare mothers, we’d be in surplus by December.
And McDonald’s has lessons for the poor?
Look, there are many reasons people wind up in poverty. Sometimes they make bad life choices — they drop out of school without salable skills, or they become teen parents. Often, it falls on them from the sky in the form of illness, injury, addiction or financial reversal.
However they got into poverty, they all need — and deserve — the same things: a way to work their way out and to be accorded a little dignity while they do so. The former comes with paying a living wage, the latter by treating people with respect and not presuming to teach them what they could teach you. McDonald’s fails on both counts.
The McBudget is a McInsult.
By: Leonard Pitts, Jr., The National Memo, July 29, 2013
July 30, 2013
Posted by raemd95 |
Corporations, Poverty | Barbara Ehrenreich, Don Thompson, Fast Food Workers, Jobs, McDonald's, Minimum Wage, VISA, Wages |
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