Terrance Wise has two jobs in Kansas City – one at a burger joint, a second at a pizza restaurant – but he said 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 said, 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.
He said, “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 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.
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?
The answers depend on whom you ask.
“They’re very effective,” said U.S. Rep. Keith Ellison, a Minnesota Democrat and co-chairman 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 a 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.
Scott DeFife, executive vice president of the National Restaurant Association, calls the protests a campaign “to disparage the industry,” which he said operates on a tight profit margin. Doubling wages, he said, “would definitely have an impact on the creation of new jobs.” He said it would be especially harmful for young people, for whom the jobless rate in some communities is already in the double digits.
Michael Saltsman, research director at the Employment Policies Institute, cites another study that he said found raising the minimum wage was counterproductive – with more people losing than gaining because hours were reduced and jobs were cut.
Some who walked out used the media spotlight to talk openly about their financial struggles.
Kareem Starks, 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 said. Starks supplements his income with a second job as a security guard, earning about $8 an hour. Together, he said, 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 said. “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.”
