McDonald's Scam on America

[xchrom]

http://www.alternet.org/mcdonalds-scam-america



You've got to feel for McDonald's. Every time the misunderstood corporation tries to offer its' low-wage employees a hand, it backfires. First the fast food giant was ridiculed this past summer for dispensing helpful budgetary advice to its struggling workers (in a nutshell: get another job). Now the company is in hot water again after a recorded call to its' McResource helpline, in which an employee who reported not being able to make ends meet was advised to sign up for food stamps and other government assistance programs, went viral online. Strangely though, the very people who ought to be most upset about this state of affairs – small government loving republicans who don't want anyone relying on federal assistance for anything – have raised little or no objection.

When Nancy Salgado, the employee at the center of this latest storm, called the McResource line to tell them she was having to ration food and couldn't take her kids to the doctor, the helpful employee on the other end of the line didn't offer to raise her wages or sign her up for health benefits, but advised her instead about the various federal government programs she could avail of. While it's not news that hugely profitable corporations like McDonald's are only too happy to rely on the American taxpayer to subsidize the non-living wages they pay their workers, (Salgado earns $8.25 an hour) the blasé nature of the phone call still sparked considerable outrage, but not from budget conscious Republicans.

Perhaps I'm being unreasonable, but it seems to me that when Republicans are so vocal about how much they hate government programs like SNAP benefits (aka food stamps) and Medicaid and indeed anything that makes life a little more feasible for low-income or no-income Americans, they should surely be able to work up a small sweat at such a blatant example of the system being gamed. Just last month congressional Republicans voted unanimously to cut $39bn from the food stamp program, and I surely don't have to waste words here outlining their opposition to any form of government subsidized healthcare. Why then, when they have made their objection to welfare programs abundantly clear are they seemingly okay with hugely profitable corporations exploiting these programs while they underpay their workers?

McDonald's have tried to do damage control on the phone call, claiming that the recording was " not an accurate portrayal of the resource line" because it was "very obviously" edited. The full 14-minute version of the call was provided to numerous medial outlets, however, and the facts remain unchanged: Salgado was told to seek out government assistance instead of being given a raise

[delrem]

1. The only way for equilibrium is for owners and shareholders to take less,

so the employees that afford them their luxury can live a basic, meaningful life.

That's what unions are about, and why unions are verboten in right-wing circles.

[geardaddy]

13. This is the correct answer.

[NYC_SKP]

45. *** Posting up high in this thread: LowPayIsNotOK.org "The Video" and Website.... Spread the Word!

And sign the petition!

http://lowpayisnotok.org/7-billion/

[geardaddy]

47. Make this its own post!

Awesome video!

[daleanime]

19. +1

[Tansy_Gold]

27. BLASPHEMY!

[KansDem]

31. The rich have taken more for over the last 30 years...

...and given back less in taxes due to "trickle down." They were supposed to "create jobs" and they didn't. They didn't uphold their part of the agreement.

It's time for us to hold them accountable and demand we return to pre-Reagan tax rates.

[Aerows]

36. Not to mention

it's a lot easier to get people to work for peanuts when you keep them desperate.

[justice1]

40. That's why I believe Republicans call themselves pro life.

[99Forever]

2. K&R

[Ian_rd]

3. Outsourcing costs.

Good post. A common practice and always worth exposure. Large corporations will increase their profits by whatever means allowed, in this case by outsourcing part of their labor costs to the tax-payer. A true fiscal conservative would rightly see these expenses as welfare checks that don't need to exist, if only employees were paid a living wage for having a job.

[brush]

7. Yep! Walmart calls it "externalizing costs."

If McD is now following the Walmart business model you just know other corps won't be far behind.

[Lobo27]

4. There is a TyT video that states that McDonald's

Makes 27billion in revenue and a net income of 5.4billion, but 1.2billion of the 5.4 is tax payer money.

[dotymed]

5. Of course the RW'ers

don't mind that McD's advises their employees to seek govt. assistance.

They are destroying such assistance anyway....

LET 'EM DIE.

They can find all of the workers they need at slave wages. They have it covered.

[get the red out]

6. Yes

They have no concern except their own $$$$. Greed out of control.

[OnionPatch]

8. The worst part is

that the GOP aren't angry that McDonald's pay such low wages that their employees qualify for food stamps. They're mad that the employees are getting food stamps. They resent that their tax dollars are helping them. They believe the poor brought their bad situations on themselves and deserve to be exploited and treated like slaves. They DO NOT CARE if the poor starve to death. They only care that none of their money goes to help them.

I have a rightwing brother in law who admits to feeling this way and I'm confident he is not alone among his peers in rightwing world. No food stamps. No minimum wages....starve if you aren't clever enough to figure out how to live. That's his mantra, basically.

[AAO]

10. Nice brother-in-law!

Unless the problems actually happen to them personally, they couldn't care less.

[mountain grammy]

15. And that, dear OnionPatch, hits it square on the head..

and my brother in law feels the same way. We are all related to these people. Oh, and he's always trying to convert us to his Christian faith because he wants us to be saved (along with him) when the Armageddon comes. I guess all those poor freeloaders will just disintegrate.

[CTyankee]

20. "Die. Die quickly."

Alan Grayson was ridiculed for saying that. But he was RIGHT!

[dchill]

28. +1

[OnionPatch]

34. Thankfully mine isn't a so-called Christian.

He thinks that makes him an independent.

I don't think he's really an evil person, he's just bought into the idea that there are multitudes of people too lazy to work and trying to scam the system. That and he doesn't read much, especially history. He truly believes in the magic hand of the free market even tho my sister (who reads) and I try to tell him how the working class were treated before labor laws.

[malaise]

9. Excellent post

Rec

[Overseas]

11. K&R. Well said.

[ProdigalJunkMail]

12. there is a much bigger issue here

than what McDonald's is paying. no one who has two kids should be relying on McDonald's as their source of income. Period. The problem is that a lot of GOOD PAYING jobs have been run out of this country by policies of the last several iterations of our so called gov't. McDonald's and retailers like WalMart created jobs that are entry level and low-paying... always have been and always will. Those sorts of jobs were not meant to be for the sole bread-winner in a family or for BOTH bread-winners in the family. When I worked McDonalds back in the 80's the only 'adults' there were the managers and the occasional person looking to supplement family income... no one was supporting a family on that job...

Getting good jobs back is the only way to fix this... the only way.

sP

[mountain grammy]

18. Yes, but a raise in the minimum wage to $12-$15 per hour is way past due

Yes, no one should raise a family on this, but define "good jobs." Those were union jobs where workers fought for good wages and benefits, they were not, necessarily "good" jobs, just better paying jobs. Sure, many were highly skilled, but many were not. The difference is; union workers bargained for a fair share of the profits because they worked to generate those profits.
A Walmart clerk or McDonalds' cook is generating profits for an enormously profitable corporation and is entitled to share in those profits with a living wage and decent benefits.
Then there's job security and decent working conditions that have also deteriorated with union strength.

[Shemp Howard]

24. Right you are!

"Getting good jobs back is the only way to fix this... the only way."

Very, very sensible post, ProdigalJunkMail. Today's service jobs will NEVER provide the same standard of living as the old manufacturing jobs did. No new laws will change that fact.

I should have added my post (#23) under yours.

[gtar100]

25. That was the perception of fast food jobs but that is not, and should never have been, the case.

An underpaid job is simply management exploiting workers and my take on this is that we should never condone this practice, regardless of the age of an employee. Keeping hours at less than full time simply to avoid paying for benefits that have become necessities in today's world is a scam, not a business model we should embrace. And anyone who works full time, regardless of what job it is, should be making a full living wage. These are just principles that put human dignity ahead of profits. We've come to accept the opposite because exploitation of workers is the general rule and not the exception. And the situation is only exasperated by the extreme inequality of wealth distribution that makes it difficult for small businesses to offer livable salaries and wages.

If these companies like McDonald's and Walmart really feel they shouldn't be providing health care benefits to their employees, then they should be front and center on the push for a single payer system funded through tax dollars. Because healthcare needs will not go away simply because they want to ignore the issue.

[csziggy]

29. The issue is that minimum wage should be above the poverty guidelines

And poverty guidelines should be at levels that allow a family to pay their bills.

2013 POVERTY GUIDELINES
FOR THE 48 CONTIGUOUS STATES
AND THE DISTRICT OF COLUMBIA
Persons in
family/household Poverty guideline

1 $11,490
2 15,510
3 19,530
4 23,550
5 27,570
6 31,590
7 35,610
8 39,630
For families/households with more than 8 persons, add $4,020 for each additional person.
http://aspe.hhs.gov/poverty/13poverty.cfm#thresholds

Minimum wage (federal level) is $7.25/hr (http://www.dol.gov/whd/state/stateMinWageHis.htm) x 40 hrs/wk x 52 wks/yr = $15080 BEFORE any deductions for insurance, Social Security, Medicare, taxes, etc.

Also, that is assuming that a minimum wage employee is allowed to work a full 40 hours a week and never takes any time at all off.

What used to be entry level positions are now the only jobs in many communities and are becoming the most common type of jobs across the country. Adults now rely on those jobs to support themselves and their families and the pay should reflect that instead of forcing the costs back into the community. Raising the pay for those jobs would be good not only for the workers, but for the entire country:

Retail's Hidden Potential: How Raising Wages Would Benefit Workers, the Industry and the Overall Economy

November 19, 2012
Catherine Ruetschlin

With more than 15 million workers in the sector, and leverage over workplace standards across the supply chain, retail wields enormous influence on Americans’ standard of living and the nation’s economic outlook. It connects producers and consumers, workers and jobs, and local social and economic development to the larger US economy. And over the next decade, retail will be the second largest source of new jobs in the United States.1

Given the vital role retail plays in our economy, the question of whether employees in the sector are compensated at a level that promotes American prosperity is of national importance. According to the Bureau of Labor Statistics, the typical retail sales person earns just $21,000 per year. Cashiers earn even less, bringing home an annual income of just $18,500.2

The continued dominance of low wages in this sector weakens our nation’s capacity to boost living standards and economic growth. Retail’s low-wage employment means that even Americans who work full-time fail to make ends meet, and growth slows because too few families have enough remaining in each paycheck to contribute to the broader economy.

The complete study: http://www.demos.org/publication/retails-hidden-potential-how-raising-wages-would-benefit-workers-industry-and-overall-ec

[ProdigalJunkMail]

30. this too makes sense... n/t

[hibbing]

14. Socialize the cost, privatize the profits

See it all throughout American "capitalism". From the taxpayers building huge sports stadiums for billionaire owners to this and a whole lot of more examples.

Peace

[connecticut yankee]

16. I think the main objection by the right

was that slavery was outlawed.

[cantbeserious]

17. Republican Duplicity

eom

[marmar]

21. k/r

[BlancheSplanchnik]

22. repukes will only believe this if their beloved authorities explain it to them

fux, rush, shammity, bill-o, crazy-eyes and winky.

[Isoldeblue]

37. Ahhhhhhhhhhh, Blanche,

you have a wonderful way with names!
I completely agree with you. Til their "masters" speak, the rethugs can't think for themselves. They are mostly bobble-heads.

[Shemp Howard]

23. The root of the problem: no manufacturing jobs!

The great middle class manufacturing jobs of the 1950's and 1960's are gone now. Those were the jobs that paid well, had great benefits, and union protection. One worker could nicely provide for an entire family.

Those jobs have been shipped overseas. The only jobs left are low-paying service jobs.

It's easy to blame the corporations. But I don't blame them. They are just doing what corporations do. Just as scorpions do what scorpions do.

I put 100% of the blame on the politicians, Democrats and Republicans alike. You know, the ones who smiled and told you how great "free trade" was going to be. The ones who smiled as they voted for NAFTA, etc.

The ones who today smile and tell you they'll raise the minimum wage a nickel, but won't do a thing to bring the good jobs back.

One reason I admire Dennis Kucinich is that he understood this, and spoke out against it. Perhaps that's one reason he's now on the outside looking in.

[sir pball]

33. I've heard it's less the outsourcing and more the automation

I can't find any hard citations at the moment but I've heard that while it's true a lot of the cheapo-crap stuff is now made overseas at 33 cents an hour, a lot of products are still made here - but by robots. Look at the auto industry. In the long run it's even cheaper than outsourcing; you do have an upfront capital whack, but after that it's just maintenance costs, you don't have to pay ANY labor or transoceanic shipping. I suspect it's how Apple and Motorola are doing the "Made/Assembled in America!" shtick...a few hundred people to oversee the machines and do some of the real fiddly stuff with tiny screws.

[Luminous Animal]

42. Those manufacturing jobs weren't always well paid

They became thus because workers fought ( and died ) for living wages and benefits.

Now it is time for service workers to organize and unionize and demand that the 1%, the Walmarts and the Mcdonalds and the Starbucks pay for the privilege of having employees.

Sadly, when the issue is advanced, there are plenty of Democrats, even on DU who mock service workers for organizing and asking for more.

[leftstreet]

46. +1

Nicely stated

[gopiscrap]

26. raise the minimum wage to 18.00 an hour for all

[closeupready]

32. People talk about McDonald's and Walmart being similar

kinds of labor-exploiting organizations.

It's interesting to consider that Hillary Clinton served on Walmart's Board of Directors for six full years, resigning ONLY when Bill became president.

[Shemp Howard]

35. Don't be so mean to Hillary.

Yes, it's true that Hillary served on the Walmart board of directors. And yes it's true that she didn't resign in protest when Walmart fought to keep the unions out.

But I suppose she simply made a rational choice. The board of directors paycheck was more important than resigning in protest.

Hillary would tell you that she wanted to affect change from inside. But there is still no union. And I'll bet she still deposited all those board paychecks.

As an aside, it's interesting how so many politicians enter DC as thousandaires and leave as millionaires. Dennis Kucinich and Bernie Sanders are two shining, noble exceptions to that.

[Isoldeblue]

38. That was a long time ago, and the times and our economy

are vastly different today. Back then, McD mostly employed teens and college students. Today, people with college degrees can't get a job anywhere but McD's or other fast food places to survive.

Once, while traveling, we stopped at a McD's, because my husband needed to use the rest room, having the green-apple-quick-step. We won't eat there or any place that isn't a mom n' pop place - period. That's a cardinal rule in our entire family - no Walmart, Koch Industry products or chain stores, except Costco's or sometimes, Target.

Anyway, I was sitting in the car for over 20 minutes. It must have been the time for shift change, about 3:30ish PM? I watched as 2 adult women in their 40's and a man about 60, all well groomed, go in with their McD shirts and sneakers, etc.

It really brought it home to me watching their resigned walk into the place. Somehow, I knew that they should be working somewhere where their talents could be used at more than 3 times or more, what they were being paid at fucking, greedy, carcinogenic, McDs'.

But thanks to the rethug bastards, they have to take what they can get in today's Reaganomics (which began all of this) job market.

I just ached for them, seeing the worn worry around their eyes and knowing this was the best that America had to offer them..................


Hopefully, in 2014, we MUST take our government BACK!!!!!!!!!!! We have to route out those MFer's teahadists in congress and the Senate and make life livable for all of us who are willing to work or get educated to do a job, that we deserve!!! People deserve medical care, being fed and an affordable education. We have to work our asses off to accomplish that!!

And if we do, God help the Dems that don't make the needed changes for a better quality life.

If that doesn't change things, then I give up on all .................... But I'm close to the end of my life, which I'm grateful for, actually.

[closeupready]

39. You make very good points here. Thanks.

And peace.

Let's kick some GOP ass in 2014!!!

[ScreamingMeemie]

44. It's funny too, because I think the employee demographic depended upon where you lived.

Where I lived (and I worked at McDs as a teenager) we had what we called the "day ladies." The day shift was made up entirely of 30,40, and 50-something year old women. But then? It really was a decent job.

[ScreamingMeemie]

43. Years ago, Walmart was a much different store.

Sam Walton stocked goods actually made in America and supported American production. His kids? His kids turned Walmart from the typically located in small towns stores to the big monstrosity they are now.

[Scootaloo]

41. I doubt that the person on the other end COULD raise her salary or give her coverage

That person's probably raking in the same minimum wage for their bullshit job as Mrs. Salgado is! Kind of a silly complaint, but also a rather revealing example of a deeper problem - Americans are not paid what they are worth. Bottom fucking line.