Lessons From Ikea on the Merits of Better Pay

While many American employers regard higher wages as anathema to business success, Ikea, the world’s largest furniture retailer, is thriving in the U.S. in large part because of its generous compensation. As HuffPo reported:

Under the system that the ready-to-assemble furniture maker first established in January [2015], the starting wage for any given store in the U.S. reflects the cost of living in that particular area as determined by the MIT Living Wage Calculator, which takes into account the local cost of rent, food, transportation and the like. After the second round of raises, which is slated for this coming January, all of the company’s U.S. stores will be paying at least $10 per hour, and the average minimum wage across all locations will be $11.87 — a 10.3 percent increase over the previous year, according to the company.

Rob Olson, chief financial officer for Ikea U.S., told The Huffington Post that the company is already reaping dividends from its decision to hike the wage floor and to factor in the local cost of living in doing so.

“We’re very pleased so far,” Olson said.

So what types of benefits has Ikea seen?

For one, less turnover. Although it’s only been six months since the raises went into effect, Olson said Ikea is on pace to reduce turnover by 5 percent or better this fiscal year. Holding onto employees longer means the company is spending less on recruiting and training new replacements.

Ikea is also attracting more qualified job seekers to work at its stores, according to Olson. Pay for retail sales workers in the U.S. is generally very low, with an average industry wage of just $12.38 per hour, according to the Bureau of Labor Statistics. But Ikea’s average store wage is heading north of $15. After its living wage announcement [in 2014], the company opened two new locations — one in Merriam, Kansas, and another in Miami — and the higher wages (and attendant publicity) likely helped the company lure more candidates.

“At both of those stores, the applicant pool was fantastic,” Olson said.

The Swedish multinational is seeing the same benefits that just about every company that pays its workers well enjoys: lower turnover (and thus savings from training and recruitment); higher morale and productivity; and the attraction and retainment of talented, quality employees. It should be intuitive that when people are given a stake in a company — through better wages, benefits, and overall treatment — they will feel invested enough to stick around and work hard, thus giving back to their employers. That has always been the logic behind paying executives and higher managers so well, so why shouldn’t it apply to everyone else?

While I am not keen on giving the government too much power, I am not so sure companies are any more rational or knowledgeable about the matter either. Ikea is hardly the first anecdote proving that paying and treating workers better generally results in higher productivity and thus better long-term performance. Indeed, that makes intuitive sense, whatever the empirical evidence, and it is precisely this logic that companies use to justify the high payouts to executives (though rarely to average workers who contributed to said profits as well).

And yet so many companies — the majority in fact — continue to sit on their high profits, or allocate the lion’s share to the top of their corporate structure, all the while bemoaning the high costs of turnover, low productivity, etc. Mere ignorance, short-term thinking, and pressure from greedy shareholders interested only in immediate (and ever-higher and unsustainable) dividends are among the reasons for this problem (to say nothing of a culture that values profits and ruthless commerce at all costs). Being a business does not entail knowing, let alone caring about, the psychological and economical factors involved in corporate policy.

Personally, I am of the view that if the only way you can run your business is to knowingly beggar your employees — for example, paying far less than what can reasonably sustain basic necessities like shelter and healthcare — despite being able to well afford better pay by simply allocating a little less to yourself and your shareholders, then you do not deserve to run a business. I know that is an idealistic and moralizing approach, but why shouldn’t it be, given how integral business policies are (in the aggregate) to societal well-being. If we do not want government calling the shots, than it is contingent on all citizens — especially with the most power and resources — to do what they can to behave ethically and socially responsibly (indeed, this is what libertarians and many conservatives argue: that it is on the private sector, not the public sector, to create a more just and prosperous society).

My short answer: leave it to workers themselves, via unions, co-ops, or other empowering structures, to contribute to the decision-making process of corporate policy. It is hardly a perfect system — what institution is? — but it seems to be the best and most practical alternative to hierarchical and often out-of-touch corporate models, as well as government fiat (which of course is typically no less hierarchical and aloof). Otherwise, we would have to hope that low-wage employers come around to Ikea’s position, especially as it is as much in their interests as those of their workers.
What are your thoughts?
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The Plight of Child Care Workers

One would think that someone who dedicates their life to serving some of the world’s most vulnerable people would be entitled to a living wage and great social respect. But as a recent ThinkProgress article highlights, those that care for the nation’s children are among the most poorly paid and economically unstable workers in the country.

According to a new analysis from the Economic Policy Institute, the median wage for child care workers is $10.31. That’s not just a small figure on its own; it’s also very low compared to what these workers could make elsewhere. Even when compared to other workers with the same gender, race, educational attainment, age, geography, and a number of other factors, EPI found that child care providers make 23 percent less. And even those figures are likely underestimating the problem, given that any provider who is self employed and working out of her own home — providers who are likely to earn even less than those in, say, centers — aren’t counted.

“Despite the crucial nature of their work, child care workers’ job quality does not seem to be valued in today’s economy,” the report notes. “They are among the country’s lowest-paid workers, and seldom receive job-based benefits such as health insurance and pensions.”

Adding insult to injury, these low wages mean that many child care workers — more than 95 percent of whom are women, and many of them parents — struggle to afford care for their own children. Barnette has experienced this conundrum herself. While she was able to get a child care subsidy for her two eldest children, her youngest son, who is now five, was put on a waiting list at three months old and only taken off last February, when he got a slot in a pre-K program. In the intervening time, Barnette had to quit her job. “I couldn’t work because I couldn’t afford the child care”, she said.

It’s a widespread problem among a workforce that cares for others’ children. Preschool teachers have to spend between 17 and 66 percent of their income to get care for their own infants; in 32 states and D.C., it eats up a third or more of their earnings.

This is despite the fact that, aside from the obvious importance of their work, the services of childcare workers are in higher demand than ever, owing to the prevalence of dual-income households where both parents must work full-time to get by (as well as the growth in single-parent households wherein the sole guardian must work a lot, too). Continue reading

U.S. Workers Need — and Deserve — a Raise

From the New York Times:

Flat or falling pay is self-reinforcing because it dampens demand and, by extension, economic growth. In the current recovery, median wages have fallen by 3 percent, after adjusting for inflation, while annual economic growth has peaked at around 2.5 percent. At that pace, growth isn’t able to fully repair the damage from the recession that preceded the recovery. The result is a continuation of the pre-recession dynamic where income flows to the top of the economic ladder, while languishing for everyone else …

… In a healthy economy with upward mobility and a thriving middle class, hourly compensation (wages plus benefits) rises in line with labor productivity. But for the vast majority of workers, pay increases have lagged behind productivity in recent decades. Since the early 1970s, median pay has risen by only 8.7 percent, after adjusting for inflation, while productivity has grown by 72 percent. Since 2000, the gap has become even bigger, with pay up only 1.8 percent, despite productivity growth of 22 percent.

Why has worker pay withered? The answer, in large part, is that rising productivity has increasingly boosted corporate profits, executive compensation and shareholder returns rather than worker pay. Chief executives, for example, now make about 300 times more than typical workers, compared with 30 times more in 1980, according to the Economic Policy Institute. Other research shows far greater discrepancies at some companies.

In most companies, there is plenty of money to go around, thanks in no small part to the contributions of hardworking Americans. Isn’t it about time they get their money’s worth? Shouldn’t they, too, get a cut of the profits they helped produce? Or at least a better and more stable working environment?

No Matter What You Do, a Living Wage is a Must

Amid demonstrations and public pressure by lowly paid fast food workers, the state of New York has become the latest jurisdiction to increase the minimum wage, this time to $15 an hour. In response, many grumbled upon the unfairness of having burger flippers and fry cooks make as much as EMTs, firefighters, and other “more important” occupations.

In response to this pushback, a paramedic publicly shared his own thoughts on the matter, which have since gone viral. Here it is in its entirety.

Fast food workers in NY just won a $15/hr wage.

I’m a paramedic. My job requires a broad set of skills: interpersonal, medical, and technical skills, as well as the crucial skill of performing under pressure. I often make decisions on my own, in seconds, under chaotic circumstances, that impact people’s health and lives. I make $15/hr.

And these burger flippers think they deserve as much as me?

Good for them.

Look, if any job is going to take up someone’s life, it deserves a living wage. If a job exists and you have to hire someone to do it, they deserve a living wage. End of story. There’s a lot of talk going around my workplace along the lines of, “These guys with no education and no skills think they deserve as much as us? Fuck those guys.” And elsewhere on FB: “I’m a licensed electrician, I make $13/hr, fuck these burger flippers.”

And that’s exactly what the bosses want! They want us fighting over who has the bigger pile of crumbs so we don’t realize they made off with almost the whole damn cake. Why are you angry about fast food workers making two bucks more an hour when your CEO makes four hundred TIMES what you do? It’s in the bosses’ interests to keep your anger directed downward, at the poor people who are just trying to get by, like you, rather than at the rich assholes who consume almost everything we produce and give next to nothing for it.

My company, as they’re so fond of telling us in boosterist emails, cleared 1.3 billion dollars last year. They expect guys supporting families on 26-27k/year to applaud that. And that’s to say nothing of the techs and janitors and cashiers and bed pushers who make even less than us, but are as absolutely crucial to making a hospital work as the fucking CEO or the neurosurgeons. Can they pay us more? Absolutely. But why would they? No one’s making them.

The workers in NY made them. They fought for and won a living wage. So how incredibly petty and counterproductive is it to fuss that their pile of crumbs is bigger than ours? Put that energy elsewhere. Organize. Fight. Win.

Writing for EMS1.com, an online network for emergency medical services (EMS) personnel, Arthur Hsieh weighed into the subsequent debate about who deserves a decent salary or wage.

Continue reading

Worker-Owned Companies Begin to Take Off in the U.S.

Amid rising inequality, stagnating wages, and the increasingly inefficient (to workers) nature of traditional corporate hierarchies, more and more workers are experimenting with an alternative method of organizing businesses that has been around for some time, yet is only recently catching on (at least in the United States): worker-owned cooperatives.

The Atlantic explores this intriguing idea as it begins to gain both public attention and viable

Worker cooperatives are equally owned and governed by employees, who also earn money from the profits of their labor. There are no CEOs here making multi-million dollar salaries while workers receive minimum wage. Nor are there CEOs with decades of experience and education to successfully guide the company through the up and downs of the dog-eat-dog business world.

In worker cooperatives, decision-making is democratic, so each worker has one vote, and policies can’t be determined by an investor whose only priority is profit. (Most profit-minded investors probably wouldn’t touch a worker cooperative with a ten-foot pole anyway.)

In a typical workplace, “there’s a pretty clear hierarchy at work, where power and wealth are concentrated at the top and decisions tend to flow from the top down”, Carlos Perez de Alejo, the executive director of Cooperation Texas, an Austin-based resource for cooperatives, told me. “We end up with the results of those decisions without really knowing where they came from”.

In Austin alone, there are worker-owned green cleaning cooperatives and collectively-run thrift stores, worker-run brewpubs and worker-owned Internet hosting cooperatives. Taxi drivers, threatened by Uber and Lyft, are talking about starting a taxi cooperative.

Though a fairly progressive island within one of America’s most conservative states, it is still pretty interesting to see this “socialistic” concept become successfully incubated in a part of the country where big business, low wages, and lack of workers’ rights are all deeply entrenched. It goes to show that when push comes to shove, and governments fail to act, the people take matters into their own hands — albeit up to a point. Continue reading

Why Workers Put Up With A Bad Economy

Given the mounting hardship and misery that has become common in most Americans’ working lives, one cannot help wonder why we have yet to take action — where are the strikes, demonstrations, unionizings, and other forms of pushback?How many more years of income stagnation, inequality, and stress can the majority of workers take? How much more difficult do things need to get?

Continue reading

Reflections On International Workers’ Day

International Workers’ Day, also known as May Day and Labor Day, is a holiday that honors the working classes and the labor movement, and also commemorates the Haymarket affair of 1886, in which workers went on strike for rights like an eight-hour workday and better working conditions (it soon became violent due to police brutality and a fatal bombing of unknown origin — you can read the details of the tragic unfolding of events here).

Despite being a seminal event in the history of the labor movement and the United States as a whole, the Haymarket affair (also known as the Haymarket massacre or riot), is given little attention in school or media. The event was one of several that captured the frustrations and concerns regarding growing inequality, workers’ exploitation, and class tension. It also contributed to the sorts of rights we now take for granted in the workplace, from safer conditions to more reasonable working shifts.

It is telling that while much of the world celebrates, the U.S. forgoes any formal recognition and instead observes “Law Day”, which affirms the importance of law in the foundation of the country, and “Loyalty Day” (formerly “Americanization Day”), which emphasizes patriotism towards American heritage and values. Both these holidays have roots in the First Red Scare of the early 20th century, and formalized in the context of the Second Red Scare that took place during the Eisenhower administration.

The participation of socialists and anarchists in what was a fairly broad-based movement did little to endear the holiday to the American establishment, especially in the context of the Cold War. Even to this day, when one speaks of workers’ rights and the like, it draws suspicion and outright ire, as if only the far-left should or could have an interest in the well-being of the majority of society (especially the vulnerable segment that does some of the toughest, most important, yet most poorly treated work).

Amid reversals in the rights and prospects of workers — from stagnating wages and salaries, to lesser job security — it is little surprise that a global holiday that recognizes the rights and well-being of workers would be overlooked and even subject to fear and contempt. Now more than ever do we need to restore a sense of consciousness and dignity among working people who are underpaid, mistreated, and deprived of opportunities for socioeconomic advancement. The auspicious absence of an American equivalent to May Day — our own Labor Day is celebrated in a different time and context — is both a symptom and cause of hostility and apathy towards the plight of working class people.

But given where the economy is headed, and how many people are getting dragged down with it, how long will that sentiment prevail? How long until we realize that labor rights and the labor movement are of interest to anyone seeking a more just, equitable, and thus thriving society for all? More people enjoying more opportunities, more dignified work, more spending power, which in turns helps businesses and grows jobs.

Of course it is not easy and it will take time and effort, perhaps unprecedented in scale. But it is a worthy endeavor for which we need to get started on as soon as possible, given the time it will take and the number of human lives being immiserated or even lost in the face of poverty and exploitations, both in the U.S. and abroad (it is International Workers’ Day for a reason).

May Day and the associated events and movements it recognized helped precipitate a more prosperous economic system, and within decades produced a culture and environment in which more and more people could share in the fruits of work and commerce, with empowerment in both the commercial and political spheres. Perhaps the second time around we can restore these now beleaguered values and go even further.

Five Myths About Fast Food Jobs

As one of the fastest-growing industries in the country, food service — along with other low-paying sectors like retail and hospitality — is becoming the new normal of employment.

But as the following list from the Washington Post shows, this is a troubling trend, as many Americans do not realize what little the industry has to offer to its burgeoning and increasingly desperate labor force.

1. Fast-food workers are mostly teenagers working for pocket money.

Fast food was indeed an adolescent gig in the 1950s and 1960s, when the paper hat symbolized the classic short-term, entry-level job. But today, despite arguments that these low-wage jobs are largely filled by “suburban teenagers,” as the Heritage Foundation put it, labor data show that about 70 percent of the fast-food workforce is at least 20 years old. The typical burger-flipper is an independent adult of about 29, with a high school diploma. Nearly a third have some college experience, and many are single parents raising families on $9 an hour. In contrast to McDonald’s rather optimistic model budget — which assumes that an employee lives in a two-income household and doesn’t need child care or gas or groceries — a large portion of fast-food workers are forced to borrow from friends to cover basic household expenses, or sometimes fall into homelessness.

According to researchers at the University of California at Berkeley, about half of the families of front-line fast-food workers depend on public programs, compared with 25 percent of the American workforce. About 87 percent of fast-food workers lack employer health benefits, compared with 40 percent of the general workforce. And roughly one-fifth of workers’ families are below the poverty line. That adds up to some $7 billion in welfare payouts each year — essentially enabling fast-food mega-chains to subsidize ultra-low wages with public benefits.

2. Employees can work their way up and eventually even own a franchise.

Burger King’s career Web site proclaims: “You’ll never be short of opportunities to show what you’ve got. And if we like what we see, there’s no limit to how far you could go here.” The New York Restaurant Association boasts that restaurant work “creates an opportunity for people to live the American dream.” Under its franchise “success stories,” McDonald’s features a man who advanced from being a crew member to owning a franchise in just a few years.

The dream of upward mobility, however, eludes most workers. The National Employment Law Project (NELP) points out that about 90 percent of the fast-food workforce is made up of “front-line workers” such as line cooks and cashiers. About 9 percent are lower-level supervisors, who earn about $13 an hour. And just 2.2 percent of fast-food jobs are “managerial, professional, and technical occupations,” compared with 31 percent of jobs in the U.S. economy.

As for the notion of working your way up to ownership, NELP reports that 1 percent of the fast-food workforce owns a franchise — a purchase that could require $750,000 to several million dollars in financial assets. And there’s no indication that many of these franchisees actually did “rise through the ranks” to become owners, which requires an amount of capital that might top the lifetime salary of an average kitchen worker.

3. Fast-food companies can’t control franchise wages or working conditions.

McDonald’s plan to raise wages at least $1 over the local minimum wagewas announced this month to much fanfare. But the raise applies only to employees of the 1,500 stores McDonald’s owns directly. The company contends that as a chain franchisor, it merely licenses its brand to individual franchise operators; is not legally liable as an employer; and thus “does not direct or co-determine the hiring, termination, wages, hours” and other working conditions for all who toil under the golden arches.

But critics say these fast-food chains actually exert powerful oversight over their franchisees by closely tracking their spending and operations. Domino’s, one franchisee claims, critiqued how his employees answered the phone; Burger King franchisees sued the chain in 2009, claiming that it was forcing them to sell menu items for a loss at $1. Companies often pressure owner-operators to squeeze down labor costs: According to one employee quoted in the Guardian, “McDonald’s corporate representatives turn up at the restaurant where he works five or six times a year, counting the number of cars using the drive-through service, timing sales, making sure staff are preparing food according to McDonald’s specifications.” More so than most fast-food chains, McDonald’s wields financial control over its franchisees and owns the rental real estate of the restaurants.

Former McDonald’s executive Richard Adams has said: “McDonald’s franchisees are pretty compliant. They don’t really organize, they don’t really protest. And if you do, they tell you you’re not a good member of the McFamily. I don’t want to make this seem too Orwellian, but the average franchisee has about six restaurants, and the franchise agreement is for 20 years. You’re probably going to have a renewal coming up. If you’re not a compliant member of the team, you’re probably not going to get that renewal.”

The issue of whether McDonald’s can be labeled a “joint employer” is being litigated in numerous claims of unfair labor practices that workers have filed with the National Labor Relations Board. The NLRB’s general counsel recently deemed McDonald’s a joint employer, and if it is ultimately penalized as such, workers could see a dramatic expansion in the company’s legal and regulatory obligations.

4. Flipping burgers is an easy job.

Some people chafe at the idea of “unskilled” fast-food workers meriting a wage more suited to a “high-skilled” job. Not only does this ignore the fact that this work requires skills — from managing inventory to training and supervising other employees — it also disregards the day-to-day challenges workers navigate on the job. According to a slew of complaints filed with the Occupational Safety and Health Administration, workers often suffer injuries such as hot-oil burns and are sometimes denied proper medical care. (Some are told to dress wounds with condiments.) Violence is also common at fast-food restaurants; according to a recent survey, roughly one in eight workers reported being assaulted at work in the past year.

Workers have also complained of racial discrimination, sexual harassment and retaliatory punishment by management. More than 40 of the NLRB claims filed against McDonald’s in the past few years alleged illegal firings or penalties because of workers’ engagement in labor activism. Add to all of this the challenge of just getting paid: Subway was found guilty of 17,000separate wage and hour violations since 2000, and in 2013, Taco Bell was hit with a $2.5 million settlement in a class-action lawsuit over unpaid overtime.

5. Paying workers $15 an hour would make burgers prohibitively costly and hurt the industry.

Some analysts, particularly on the right, have laid out doomsday scenarios of massive economic disruption caused by a sudden doubling of wages in the fast-food industry. The Heritage Foundation argues that raising wages to $15 an hour could lead to a price spike, shrinking job opportunities, and huge drops in sales and profits . In reality, any such wage increase would probably be incremental and could be absorbed in large part by lowering the fees collected by parent companies from franchisees. Fast-food workers already enjoy such higher pay in other countries with strong labor regulation and union representation. A Big Mac in New Zealand costs less than one in the United States — $4.49 vs. $4.79, according to the Economist’s Big Mac index — and it’ll likely be served by a full-time union worker earning about $12 per hour.

Higher wages might also bring business benefits, in the form of lower turnover and good press. The Michigan-based fast-casual restaurant Moo Cluck Moo offers a $15 wage alongside premium grass-fed burgers, turning its reputation as a socially responsible employer into a selling point. The market for super-cheap fast food is apparently declining. Consumers just might be hungry for a more conscientious business model.

‘Walmart’s Worst Nightmare’ Is Expanding Massively

This is definitely a good company to keep an eye on, especially as it continues to expand across the west coast (and hopefully beyond). WinCo is employee owned and managed, and offers generous pension and healthcare benefits even to part-timers — all this while managing to offer lower costs to consumers than even infamously exploitative Walmart. Hopefully this model catches on. Read more about it on Forbes.

TIME

WinCo Foods is pushing into one of the country’s hottest grocery store markets, Texas—and the competition is quaking in their boots.

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The Plight of Restaurants Workers

Throughout the recession and subsequent recovery, one of the few job opportunities that have remained largely unaffected, if not growing, has been food service. From eateries to fast-food chains, this broad industry has gained an impressive 30 percent in employment since 1990, accounting for nearly one out of ten private-sector jobs in the U.S.

Unfortunately, a recent report by the Economic Policy Institute exposes some very disquieting things about one of America’s fastest-growing employers. Here are some of the highlights courtesy of Mother Jones:

The industry’s wages have stagnated at an extremely low level. Restaurant workers’ median wage stands at $10 per hour, tips included—and hasn’t budged, in inflation-adjusted terms, since 2000. For nonrestaurant US workers, the median hourly wage is $18. That means the median restaurant worker makes 44 percent less than other workers. Benefits are also rare—just 14.4 percent of restaurant workers have employer-sponsored health insurance and 8.4 percent have pensions, vs. 48.7 percent and 41.8 percent, respectively, for other workers.

 

Unionization rates are minuscule. Presumably, it would be more difficult to keep wages throttled at such a low level if restaurant workers could bargain collectively. But just 1.8 percent of restaurant workers belong to unions, about one-seventh of the rate for nonrestaurant workers. Restaurant workers who do belong to unions are much more likely to have benefits than their nonunion peers.

 

As a result, the people who prepare and serve you food are pretty likely to live in poverty. The overall poverty rate stands at 6.3 percent. For restaurant workers, the rate is 16.7 percent. For families, researchers often look at twice the poverty threshold as proxy for what it takes to make ends meet, EPI reports. More than 40 percent of restaurant workers live below twice the poverty line—that’s double the rate of non-restaurant workers.

 

Opportunity for advancement is pretty limited. I was surprised to learn that for every single occupation with restaurants—from dishwashers to chefs to managers—the median hourly wage is much less than the national average of $18. The highest paid occupation is manager, with a median hourly wage of $15.42. The lowest is “cashiers and counter attendants” (median wage: $8.23), while the most prevalent of restaurant workers, waiters and waitresses, who make up nearly a quarter of the industry’s workforce, make a median wage of just $10.15. The one that has gained the most glory in recent years, “chefs and head cooks,” offers a median wage of just $12.34.

 

Industry occupations are highly skewed along gender and race lines. Higher-paid occupations are more likely to be held by men—chefs, cooks, and managers, for example, are 86 percent, 73 percent, and 53 percent male, respectively. Lower-paid positions tend to be dominated by women: for example, host and hostess (84.9 percent female), cashiers and counter attendants (75.1 percent), and waiters and waitresses (70.8 percent). I took up this topic in a piece on the vexed gender politics of culinary prestige last year. Meanwhile, “blacks are disproportionately likely to be cashiers/counter attendants, the lowest-paid occupation in the industry,” while “Hispanics are disproportionately likely to be dishwashers, dining room attendants, or cooks, also relatively low-paid occupations,” the report found.

 

Restaurants lean heavily on the most disempowered workers of all—undocumented immigrants. Overall, 15.7 percent of US restaurant workers are undocumented, nearly twice the rate for non-restaurant sectors. Fully a third of dishwashers, nearly 30 percent of non-chef cooks, and more than a quarter of bussers are undocumented, the report found. So a huge swath of the people who feed you pay payroll taxes and sales taxes yet don’t receive the rights of citizenship.

All of this reflects a rather disturbing overall trend in the U.S. economy: the loss of stable, well-paying jobs to less secure, low-wage ones. Not only has job growth not kept pace with the needs of the labor force, but the relatively few options that remain share largely the same characteristics: meager pay, little to no benefits, no paid sick leave, poor upward mobility, and so on. And since this has become standard across the industry — baring only a few examples — most companies have little incentive to offer anything better to their workers — in essence, it is a race to the bottom, one that desperate workers of all ages have no choice but to take up.

Needless to say, this is not a sustainable model for prosperity. Not only do individual employees suffer, but so do their families and communities (the poorest of which often have few options beyond food service and equally low-paying retail). The national economy as a whole cannot thrive when such a large chunk of its consumer base is too poor to afford goods and services, or too unhealthy and demoralized to work at optimal productivity. These highly profitable employers have as much an interest in investing more in their labor force as the workers themselves.

For its part, the EPI report suggests legislative solutions, including a  higher minimum wage, mandated paid sick leave, and a path to legal status for undocumented workers. I would add unionization or some sort of labor collective as a big step, too. For its part, MoJo recommends that those wishing to learn more about the working conditions in America’s food industry read the 2013 book Behind the Kitchen Door by Saru Jayaraman.

As fast-food, retail, and other service work continues to take the place of increasingly obsolete but better-paying positions, we need to start adjusting the way we value such labor; otherwise, unpleasant, beggaring jobs will be the new normal, and that cannot last.