Will fast-food protests help super-size the minimum wage?

Terrance Wise has two jobs in Kansas City — one at a burger joint, a second at a pizza restaurant — but he says his paychecks aren’t enough to buy shoes for his three daughters and insure his 15-year-old car. So he decided to draw attention to his plight: He walked off work in protest.

Wise was among a few thousand fast-food workers in seven cities, including New York, Chicago and Detroit, who took to the streets last week, carrying “Strike” and “Supersize Our Wages” signs in front of McDonalds, Wendy’s, Burger King and other restaurants. They demanded better pay, the right to unionize and a more than doubling of the federal minimum hourly wage from $7.25 to $15.

“We work hard for companies that are making millions,” the 34-year-old Wise says, adding that he lost his home last year, unable to make mortgage payments despite working about 50-hour weeks at Pizza Hut and Burger King. “We’re not asking for the world. We want to make enough to make a decent living. We deserve better. If they respect us and pay us and treat us right, it’ll lift up the whole economy.”

These one-day protests, which also took place in St. Louis, Milwaukee and Flint, Mich., come amid calls from the White House, some members of Congress and economists to raise the federal minimum wage, which was last increased in 2009. Most of the proposals, though, seek a more modest rise than those urged by fast-food workers. President Barack Obama wants to boost the hourly wage to $9. And in July, more than 100 economists signed a petition supporting a bill sponsored by a Florida congressman that would hike it to $10.50 an hour.

The restaurant industry argues that a $15 hourly wage could lead to businesses closings and fewer jobs. It also notes the cost of living varies greatly around the country and many states have higher minimum wages than the federal rate. (Eighteen states and the District of Columbia, according to the National Conference of State Legislatures.)

The Employment Policies Institute, which receives some funding from the industry, ran a full-page ad last week in USA Today, warning of another potential consequence: It showed the uniform of a fast-food worker with an iPad face, saying the wage increase could result in employees being replaced with automation, such as touch-screen ordering.

So at a time when the economy is growing steadily but slowly and about 11.5 million people are unemployed — nearly double the level before the Great Recession — how likely is it Congress will increase the minimum wage? And have these protests done any good?

The answers depend on whom you ask.

“They’re very effective,” says U.S. Rep. Keith Ellison, a Minnesota Democrat and co-chair of the Congressional Progressive Caucus. “They’ve brought attention to appalling conditions with workers putting in very long hours … and not making enough money to survive. This I think is scandal. .. We believe it’s essential to be paid livable wages. We know the companies can afford it. These are highly profitable businesses. It would be good not just for the family budget but for the national budget.”

Ellison’s caucus launched a national “Raise Up America” campaign this summer that has partnered with fast-food workers and others in low-wage industries to highlight the call for better salaries. The congressman says he’s not deterred by likely resistance in the GOP-dominated House.

“Remember, things that don’t look possible become possible if people advocate for them,” he says, adding that in 1955 someone was probably saying “they’re never going to end segregation. … Sometimes these things catch on. I think the thing to do is keep on pushing, keep on talking. … That’s how we win.”

But others are more skeptical and think if there is a winner, it’s unions. The Service Employees International Union is providing financial support and staff to help train organizers for this campaign.

These protests show unions “still can appeal to and speak for workers who are on the fringes of the workforce — the less skilled, the part-timers and the immigrant workers,” Gary Chaison, professor of industrial relations at Clark University in Massachusetts, wrote in an email.

These still are hard times, people are happy to be employed and the political climate in the House is not conducive for an increase, he adds. “The demonstrations are street theater and the rehabilitation of the image of American unions, but it’s not going to drive new minimum wage policy,” he wrote.

Scott DeFife, executive vice president of the National Restaurant Association, calls the protests a campaign “to disparage the industry,” which he says operates on a tight profit margin. Doubling wages, he says, “would definitely have an impact on the creation of new jobs.” He says it would be especially harmful for young people, for whom the jobless rate in some communities is already in the double digits.

Some fast food companies responded to the protests by saying they respect the rights of their workers.

And some who walked out used the media spotlight to talk openly about their financial struggles.

Kareem Sparks, a 30-year-old father of two boys, 6 and 12, was laid off in 2011 from a $17.50-an-hour city job in New York. His unemployment benefits ran out and he turned to food pantries. Five months ago, he found work at McDonald’s.

“I’m grateful they gave me an opportunity to feed my family and put food on the table, but it’s not enough,” he says. Sparks supplements his income with a second job as a security guard, earning about $8 an hour. Together, he says, he brings home about $1,000-$1,100 every two weeks and needs food stamps to survive.

“It’s horrible to know when I pick up my (McDonalds) check, it’s going to be less than $200,” he says. “You spend all your money in one store and go to sleep broke. It’s not fair. … Some people get their checks and don’t come back to work.”

The average hourly salary for fast-food workers was $9 in May 2012, according to the Bureau of Labor Statistics. The average age for these workers is 29 years old; for women, it’s 32, according to the bureau. The restaurant association says its own analysis of Census data found that slightly more than 25 percent of fast-food workers are heads of households.

Both sides in the fight over the minimum wage cite numerous studies to buttress their arguments about whether a raise would be harmful.

The petition signed by the economists says that for decades, research has “found that no significant effects on employment opportunities result when the minimum wage rises in reasonable increments.” The economists also note that minimum-wage workers employed full time for the entire year earn $15,080, almost 20 percent below the poverty level for a family of three.

But Michael Saltsman, research director at the Employment Policies Institute, cites another study that he says found raising the minimum wage was counterproductive — with more people losing than gaining because hours were reduced and jobs were cut.

Tessie Harrell, one of the workers in the middle of this academic debate, walked off her job in protest last week.

As a Burger King manager in Milwaukee, Harrell, 34, has to stretch her $8.25 hourly salary to support five children (a sixth lives on her own). They live in a two-bedroom apartment. Her mother helped out financially and with child care, but she has since moved to a nursing home.

“It’s not like we’re teens working for a pair of shoes or a cell phone,” Harrell says. “We’re grown adults who can’t find better jobs.”

She would like to see something come from the protests, a wage improvement, even if it’s not $15 an hour.

“I hope it works,” she says. “We’re just trying to survive and build a life for our children.”

ad-high_impact_4
Business
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like