Fast food: High profits and low wages
Fast food: High profits and low wages
As companies make record profits, we ask what is behind the resistance to increasing pay for those earning the least.
Last week in New York City, hundreds of fast food workers walked off their jobs, demanding higher wages and improved benefits. Many of them earn the federal minimum wage of $7.50 an hour.
New York state recently approved an increase in the minimum wage to $9 an hour by the year 2016. But for a full time worker that still would only mean a yearly income of $18,000 in a city where the living wage for one adult is estimated at $26,500.
In response to the protests, McDonald's issued a statement saying it treats their employees with dignity and respect while offering competitive wages.
Employees, however, say the company is simply ignorning their demands. And there is quite a disparity between worker pay and company profits.
According to Bloomberg, the median earnings for a fast food worker are approximately $18,000 a year.
Meanwhile McDonald's has seen 135 percent profit increase between 2007 and 2011. And in 2011, their highest paid executive made $8.8m.
Yum! brands, which operates several fast food restaurants, including Taco Bell and Pizza Hut saw a 45 percent increase in profits between 2007 and 2011. And their highest paid executive made $20.4m in 2011.
http://www.aljazeera.com/programmes/insidestoryamericas/2013/04/20134991635585514.html?utm_content=automate&utm_campaign=Trial6&utm_source=NewSocialFlow&utm_term=plustweets&utm_medium=MasterAccount
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That's PR speak for "Listen you easily expendable employee. We own you and this is the meager salary we are offering you. If you don't take it we have thousands of applicants to choose from. We have the right to fire your ass if you complain or attempt to unionize". 