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‘The success is inspirational’: the Fight for $15 movement 10 years on
Analysis‘The success is inspirational’: the Fight for $15 movement 10 years onSteven GreenhouseFederal lawmakers failed to increase the minimum wage, but US workers made other gains, and they are setting their sights on new goals Ten years ago next week, 200 fast-food workers walked out at 20 New York City restaurants, demanding $15 an hour in pay. At the time, many observers scoffed at $15 as an absurd, pie-in-the-sky demand. As the movement’s anniversary approaches, the Fight for $15 movement has proven the naysayers wrong.‘$15 an hour is not enough’: US domestic workers rally on eve of midterms Read moreTopicsMinimum wageUS unionsUS politicsMcDonald’sStarbucksnewsReuse this content More
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Why the White House stopped telling the truth about inflation and corporate power | Robert Reich
Why the White House stopped telling the truth about inflation and corporate powerRobert ReichStarbucks, McDonald’s, Chipotle, Amazon – all protect profits by making customers pay more. We need the political courage to say they can and should cover rising costs themselves The Biden White House has decided to stop tying inflation to corporate power. That’s a big mistake. I’ll get to the reason for the shift in a moment. First, I want to be clear about the relationship between inflation and corporate power.Share the Profits! Why US business must return to rewarding workers properly | Robert ReichRead moreWhile most of the price increases now affecting the US and global economies have been the result of global supply chain problems, this doesn’t explain why big and hugely profitable corporations are passing these cost increases on to their customers in the form of higher prices.They don’t need to do so. With corporate profits at near record levels, they could easily absorb the cost increases. They’re raising prices because they can – and they can because they don’t face meaningful competition.As the White House National Economic Council put it in a December report: “Businesses that face meaningful competition can’t do that, because they would lose business to a competitor that did not hike its margins.”Starbucks is raising its prices to consumers, blaming the rising costs of supplies. But Starbucks is so profitable it could easily absorb these costs – it just reported a 31% increase in yearly profits. Why didn’t it just swallow the cost increases?Ditto for McDonald’s and Chipotle, whose revenues have soared but who are nonetheless raising prices. And for Procter & Gamble, which continues to rake in record profits but is raising prices. Also for Amazon, Kroger, Costco and Target.All are able to pass cost increases on to consumers in the form of higher prices because they face so little competition. As Chipotle’s chief financial officer said, “Our ultimate goal … is to fully protect our margins.”Worse yet, inflation has given some big corporations cover to increase their prices well above their rising costs.In a recent survey, almost 60% of large retailers say inflation has given them the ability to raise prices beyond what’s required to offset higher costs.Meat prices are soaring because the four giant meat processing corporations that dominate the industry are “using their market power to extract bigger and bigger profit margins for themselves”, according to a recent report from the White House National Economic Council (emphasis added).Not incidentally, that report was dated 10 December. Now, the White House is pulling its punches. Why has the White House stopped explaining this to the public?The Washington Post reports that when the prepared congressional testimony of a senior administration official (Janet Yellen?) was recently circulated inside the White House, it included a passage tying inflation to corporate consolidation and monopoly power. But that language was deleted from the remarks before they were delivered.Apparently, members of the White House Council of Economic Advisers raised objections. I don’t know what their objections were, but some economists argue that since corporations with market power wouldn’t need to wait until the current inflation to raise prices, corporate power can’t be contributing to inflation.This argument ignores the ease by which powerful corporations can pass on their own cost increases to customers in higher prices or use inflation to disguise even higher price increases.It seems likely that the Council of Economic Advisers is being influenced by two Democratic economists from a previous administration. According to the Post, the former Democratic treasury secretary Larry Summers and Jason Furman, a top economist in the Obama administration, have been critical of attempts to link corporate market power to inflation.“Business-bashing is terrible economics and not very good politics in my view,” Summers said in an interview.Wrong. Showing the connections between corporate power and inflation is not “business-bashing”. It’s holding powerful corporations accountable.Whether through antitrust enforcement (or the threat of it), a windfall profits tax or price controls, or all three, it’s important for the administration and Congress to do what they can to prevent hugely profitable monopolistic corporations from raising their prices.Otherwise, responsibility for controlling inflation falls entirely to the Federal Reserve, which has only one weapon at its disposal – higher interest rates. Higher interest rates will slow the economy and likely cause millions of lower-wage workers to lose their jobs and forfeit long-overdue wage increases.
Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
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‘You will not have your seat again’: how the Fight for $15 movement gained new momentum
For Terrence Wise, a McDonald’s employee from Kansas City, Missouri, the battle for a raise in the federal minimum wage is far from over.
Joe Biden campaigned on a raise, the first since 2009, and the majority of Americans of both parties support an increase. And yet, last month, Congress blocked an increase from the paltry $7.25 an hour where it has been stuck since 2009. Now there are signs of new momentum for change.
If Washington can’t find a solution, Wise had a warning for politicians of both sides. “If you’re not going to make $15 a reality for workers, if you’re not going to create an environment for workers to join a union and make that possible, you will not be re-elected. You will not have your seat again,” Wise said, an organizer with the Fight for $15 movement. “We will not continue to choose representatives who are truly not representing us or who are out of tune with the working class.
“We say don’t take it as a threat – take it as a promise.”High hopes that the federal minimum wage would be lifted for the first time in over 10 years came with the introduction of Biden’s $1.9tn stimulus package. The wage hike, which Biden tucked into his original stimulus plan, would have been the largest victory for the Fight for $15 movement since it started to mobilize fast-food workers in 2012.
But when the bill hit the Senate, the wage increase faced two major hurdles: moderate Democrats who said that $15 was just too high and a ruling from the Senate’s parliamentarian on whether including an increase in the spending bill would break Senate rules.
Ultimately, both factors stopped the increase from going into law.
While Congress’s failure to raise the minimum wage dealt a blow to the Fight for $15 movement, advocates say there is still enough momentum behind the issue to build pressure on lawmakers in DC to bring a $15 minimum wage back to the table. Activists also say the Democratic party risks losing the support of some of its base if a new minimum wage fails to pass.
“It’s such a core priority for so many organizations, for so many people, so many of the voters that put a lot of these elected officials into office,” said Tsedeye Gebreselassie, director of work quality at the National Employment Law Project. “It’s the top economic policy priority this year.”
Multiple polls have shown there is broad support for a $15 minimum wage. One Pew Research poll from 2019 found that 67% of Americans support a minimum wage increase. An Amazon/Ipsos poll released this month found approximately the same percentage of support.
With inaction from Congress, 29 states have increased their own minimum wage above the federal rate. Seven states have passed legislation increasing their minimum wage to $15 gradually, Florida being the most recent state to pass the measure by a ballot initiative. A few companies have also taken things into their own hands, with Costco, Amazon and Target increasing their minimum wage to at least $15 in recent years. More - in US Politics
McDonald's spies on union activists – that's how scared they are of workers' rights | Indigo Olivier
On 24 February, Vice reported that McDonald’s has, for years, spied on activists and employees engaged in labor organizing and the Fight for $15 campaign. Internal McDonald’s corporate documents obtained by Vice confirmed that the company has been concerned with gathering “strategic intelligence” on workers involved in efforts to secure higher wages, better working conditions and a union. This includes using data collection software to monitor employees and their networks through social media and “a team of intelligence analysts in the Chicago and London offices”.
This comes after years of reporting on similar efforts by Amazon to prevent the unionization of their own employees. Job postings for intelligence analysts to monitor and report on “labor organizing threats”; social media monitoring; interactive “heat mapping” tools to anticipate and pre-empt strikes or union drives; Pinkerton operatives; and, most recently, coordinated efforts with county officials to change the traffic lights outside Amazon’s facility in Bessemer, Alabama to prevent organizers from speaking to workers during shift changes – all have been deployed to secure the company’s bottom line.
As Vice points out, surveillance against labor organizers is nothing new. What’s new is the use of technology to aid in these efforts, which may also be in violation of federal labor law.
The surveillance and intimidation of workers is a feature, not a bug, and one that has come to define American capitalism at home and abroad. As Vox noted last June, “the creation of urban police forces was largely spurred by a desire to contain union activism and protest.” While police in southern cities are largely a vestigial outgrowth of slave patrols, in northern cities like Chicago, elite businessmen pushed for the development of municipal police forces to suppress labor organizing around demands like an eight-hour workday. The concept of policing as “public safety” came later.
There is no evidence to suggest government involvement in the surveillance of workers at either Amazon or McDonald’s. Yet the failure on the part of past administrations to condemn these egregious labor violations – or condemn the yawning wealth gap between megacorporations and the underpaid workers whose labor they depend on – amount to tacit approval of business-as-usual by any means necessary.
This Sunday, Biden broke this awful trend by releasing a surprisingly strong statement in support of unions. While he stopped short of calling out Amazon by name, his video address was directed at “workers in Alabama” and represents the strongest pro-union statement of any president in modern US history.
“You should remember that the National Labor Relations Act didn’t just say that unions are allowed to exist, it said we should encourage unions,” Biden said. “There should be no intimidation, no coercion, no threats, no anti-union propaganda. Every worker should have a free and fair choice to join a union. The law guarantees that choice.”
Under an economic system that enriches CEOs by underpaying workers for the value of their time and pocketing the profits, there is a direct connection between the dystopian anti-labor tactics used by the likes of McDonald’s and Amazon and the $1.3tn transfer of wealth to the country’s 664 billionaires over the course of the pandemic. Bezos’s path to becoming the world’s first trillionaire is precisely because of his successful efforts at preventing unions from taking hold in his private empire.
As Marx put it: capital is dead labor, which, vampire-like, lives only by sucking living labor, and lives the more, the more labor it sucks.
Biden now has a choice to make: Amazon or unions. He can’t fight for both.
On the campaign trail, Biden sent conflicting messages by cultivating the image of a blue-collar union man and simultaneously promising a room full of corporate donors that under his presidency “no one’s standard of living will change, nothing will fundamentally change.”
Biden adopted a $15 minimum wage as one of his few concessions to the left, in an effort to win over Bernie Sanders supporters, and later changed his tone by saying he didn’t believe the provision would last in the most recent Covid-19 stimulus package. The statement amounted to a shrugging off of one among a number of campaign promises that look less likely to be fulfilled by the day. Democrats are now dishonestly pointing the blame at a single and little-known Senate parliamentarian, though Kamala Harris could easily overrule the decision and lift nearly a million people out of poverty.
We can and should give credit to Biden for his recent statement on unions while also recognizing that words alone are not enough. Biden has the power to immediately pass a federal $15 minimum wage, raise corporate taxes, call on the National Labor Relations Board to investigate companies like McDonald’s and Amazon which unlawfully spy on their employees, and take a trip to Bessemer to show support for the facility’s 5,800 workers.
This is a David-versus-Goliath fight and the stakes are simply too high to stop short of executive action. Until he proves otherwise, we need to remember Biden’s message to corporate America: nothing will fundamentally change.
Indigo Olivier is a 2020-2021 Leonard C Goodman investigative reporting fellow at In These Times magazine More - in US Politics
Bernie Sanders: US sick of subsidizing 'starvation wages' at Walmart and McDonald's
US taxpayers should not be “forced to subsidize some of the largest and most profitable corporations in America”, Bernie Sanders told a Senate hearing on Thursday.As Congress debates the first rise in the minimum wage in over a decade, the Vermont senator said he had “talked to too many workers in this country who, with tears in their eyes, tell me the struggles they have to provide for their kids on starvation wages” even as the chief executives of companies including McDonald’s, Walmart and others take home multi-million dollar pay packages.Executives from Walmart and McDonald’s were invited to the hearing, titled Should Taxpayers Subsidize Poverty Wages at Large Profitable Corporations?They declined to appear.The senators heard from low-wage workers from McDonald’s and Walmart. Terence Wise, a McDonald’s employee from Kansas City, Missouri, said his low pay had led to his family becoming homeless.“My family has been homeless despite two incomes. We’ve endured freezing temperatures in our purple minivan. I’d see my daughter’s eyes wide open, tossing and turning, in the back seat. Try waking up in the morning and getting ready for work and school in a parking lot with your family of five,” said Wise.“That’s something a parent can never forget and a memory you can never take away from your children. You should never have multiple jobs in the United States and nowhere to sleep.”Sanders cited a government accountability office (GAO) report that found nearly half of workers who make less than $15 an hour rely on public assistance programs that cost taxpayers $107bn each year.Walmart spent $8.3bn on stock buybacks in 2017, the Walton family, the chain’s founders, are worth over $200bn and have increased their wealth by $50bn since the start of the pandemic, said Sanders. And yet the company “cannot afford to pay its workers at least $15 an hour”.“If Walmart thinks they’re going to avoid answering that question because they’re not here today, they’re deeply mistaken. The American people are sick and tired of subsidizing the wealthiest family in America,” said Sanders.The hearing comes at a tense moment for minimum wage advocates. Joe Biden campaigned on a pledge to increase the minimum wage to $15 an hour from its current level of $7.25. The proposal is part of his $1.9tn Covid stimulus package.But that package faces stiff opposition from in the Senate with the Republican minority set to vote against it and some Democrats opposing the wage rise.A recent Congressional Budget Office concluded 27 million Americans would be affected by an increase in the minimum wage to $15, and that 900,000 would be lifted out of poverty. But the CBO also said the increase would lead to 1.4m job losses and increase the federal budget deficit by $54bn over the next 10 years. The Economic Policy Institute, and others, have called the report “wrong, and inappropriately inflated”.Republican Senator Mike Bruin told the hearing that an increase would be unfair on states with a lower cost of living and would hurt small businesses.“We need to slow it down,” he said. “The main result is you are going to hurt Main Street,” he said. More
