by Marion Nestle

Currently browsing posts about: Labor

Apr 15 2015

Tax Day 2015: Protesting low wages and taxpayer subsidies of low-wage work

Today is the day your taxes are due (in case you hadn’t noticed) and I’ve been collecting items on how tax dollars are used to subsidize businesses that rely on low-wage workers.

1.  Fight for $15 is mobilizing fast-food and other low-wage workers to walk off their jobs today in what the group says is the most widespread mobilization ever by U.S. workers seeking higher pay.  It expects protests in “more than 100 cities, in 35 countries, on six continents, from Sao Paolo to Tokyo.”  USA Today has the story on it.

2.  The New York Times featured people who are working, but still need public assistance to get buy (and they qualify for it).

Yet these same people also are on public assistance — relying on food stamps, Medicaid or other stretches of the safety net to help cover basic expenses when their paychecks come up short.

And they are not alone. Nearly three-quarters of the people helped by programs geared to the poor are members of a family headed by a worker, according to a new study by the Berkeley Center for Labor Research and Education at the University of California. As a result, taxpayers are providing not only support to the poor but also, in effect, a huge subsidy for employers of low-wage workers, from giants like McDonald’s and Walmart to mom-and-pop businesses.

3.  The Washington Post also covered this story, which comes from a report by  from the University of California at Berkeley’s Center for Labor Research and Education.

Families in which at least one member is working now make up the vast majority of those enrolled in major public-assistance programs like Medicaid and food stamps, according to a new study. It’s a “hidden cost” of low-wage work, researchers say, and it costs taxpayers about $153 billion a year.

4.  The Restaurant Opportunities Center (ROC) just released a report, Picking up the NRA’s Tab: The Public Cost of Low Wages in the Restaurant Industry.

The report’s key findings:

  • Nearly half of the families of full-service restaurant workers are enrolled in one or more public-assistance programs.
  • The cost of public assistance to families of workers in the full-service restaurant industry is $9,434,067,497 per year.
  • Tipped restaurant workers live in poverty at 2.5 times the rate of the overall workforce.
  • Restaurant workers as a whole experience poverty at a rate over twice that of the overall workforce – 20.9%.
  • Large full-service restaurant companies like Darden and DineEquity pay their workers so little that many of the employees of these companies rely on taxpayer-funded programs.
  • The taxpayer cost of a single Olive Garden is $196,970 annually.

ROC United is spearheading ‘One Fair Wage,’ a multi-state and national campaign to raise the lower, tipped minimum wage–currently $2.13 per hour–to 100% of the regular minimum wage.

Now, how about setting the minimum wage at $15 per hour….

Jan 21 2014

A triumph for organized labor: Walmart agrees to pay 1 cent/pound more to tomato pickers

The  big news last week—and it is very big news—is that Walmart has signed on to the Coalition of Immokalee Workers’ (CIW) Fair Food Program.

Under this program, Walmart agrees to pay Florida tomato pickers one penny more for each pound harvested — and says it will apply that premium to other fresh produce sold by the chain.

A penny a pound may not sound like much, especially since Walmart took in $466 billion  in revenue last year.

But it means that workers who are now paid 50 cents for a 32-pound basket will get 82 cents, and their wages can go from $50 to $90 dollars a day.

As Tom Philpott explains in Mother Jones

Late Thursday, CIW netted the biggest fish of all: Walmart, by far the largest private food buyer in the US. A company that muscled its way to the top of the US corporate heap by pinching pennies—squeezing suppliers and its own workers relentlessly—has now agreed to shell out an extra penny per pound for tomatoes.

CIW has shown yet again that scrappy workers, sufficiently organized, can win concessions from even the most ruthless companies.

Barry Estabrook, whose book Tomatoland has done so much to bring attention to the CIW’s accomplishments, writes in Civil Eats

The struggle for labor justice in the fields of the United States—and perhaps far beyond—took an historic stride forward yesterday. At a folding table in a metal-clad produce packing shed beside a tomato field in southwestern Florida, two high-ranking executives from the giant retailer Walmart, which sells more groceries than any other company in the world, sat down beside two Mexican farmworkers and signed an agreement to join the Fair Food Program…The implications of the Walmart decision cannot be understated. Enormous pressure will be placed on competing grocery giants to follow Walmart’s lead.

Good work, CIW.