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Organizing makes economic sense.
Unlike industrial jobs, these can’t be outsourced abroad. Nor are they
likely to be replaced by automated machinery and computers. The service
these workers provide is personal and direct: Someone has to be on hand
to help customers and dole out the burgers.
And any wage gains they receive aren’t likely to be passed on to
consumers in higher prices because big-box retailers and fast-food chains
have to compete intensely for consumers. They have no choice but to keep
their prices low.
That means wage gains are likely to come out of profits – which, in
turn, would affect the return to shareholders and the total compensation of
top executives.
That wouldn’t be such a bad thing.
According to a recent report by the National Employment Law
Project, most low-wage workers are employed by large corporations that
have been enjoying healthy profits. Three-quarters of these employers (the
fifty biggest employers of low-wage workers) are raking in higher
revenues now than they did before the recession.
McDonald’s — bellwether for the fast-food industry — posted strong
results during the recession by attracting cash-strapped customers, and its
sales have continued to rise.
Its CEO, Jim Skinner, got $8.8 million last year. In addition to annual
bonuses, McDonald’s also gives its executives a long-term bonus once
every three years; Skinner received an $8.3 million long-term bonus in
2009 and is due for another this year. The value of Skinner’s other perks
— including personal use of the company aircraft, physical exams and
security — rose 19% to $752,000.
Yum!Brands, which operates and licenses Taco Bell, KFC, and Pizza
Hut, has also done wonderfully well. Its CEO, David Novak, received
$29.67 million in total compensation last year, placing him number 23 on
Forbes’ list of highest paid chief executives.
Walmart – the trendsetter for big-box retailers – is also doing well.
And it pays its executives handsomely. The total compensation for