- McDonalds Workers -

Why workers have no bargaining power on wages

WHY WORKERS HAVE NO BARGAINING POWER ON WAGES

There are many reasons why job applicants at McDonaldÆs
do not have any bargaining power when it comes to negotiating
wages. These are:

1. The job market, like any other, is dictated by the laws of
supply and demand. When there is more supply than demand, then
prices fall. In the U.S., unemployment runs about 6 percent û
- an intentional policy by the Federal Reserve Board. Because
there are always more workers than jobs, workers must compete
for jobs. That makes it an employerÆs market, and he gets to
determine wages -- which is as low as possible.

2. The minimum wage is one attempt to correct the unfairness of
the above point. In the U.K., of course, there is no minimum
wage. In the U.S., the minimum wage was initially intended to
keep the lowest paid workers within 50 percent of the national
average wage. But the Reagan-Bush administration froze the
minimum wage for nine years, allowing inflation to erode its
purchasing power. Today it is about 33 percent of the average.

One of the reasons why the minimum wage has been frozen for so
long is because of who controls Congress. The National Restaurant
Association is one of the most powerful lobbies on Capital Hill.

The Wall Street Journal recently wrote:

"Few interest groups are better positioned to gain [from
Congress]... than the foodservice industry, whose agenda is
pushed by the National Restaurant Association."

And the National Restaurant Association describes itself thus in
its recruitment brochures:

"The National Restaurant Association supplies the foodservice
community with legislative representation to the nation's
political leadersà The key contact program is an organization of
1,500 volunteer restaurateurs who develop and maintain lasting
relationships with lawmakers."

Stripped of its euphemisms, this statement means that they have
an army of lobbyists who bribe members of Congress to pass (or
not pass) laws in their favor. Compare this to the nationÆs
working poor, who do not have the money, the experience or the
political savvy to organize sophisticated lobbying campaigns on
their behalf.

3. Collective bargaining for higher wages is almost impossible,
thanks to the union-busting tactics of management. This is a
subject that is more than adequately covered elsewhere in
McSpotlight, but I would draw your attention to one additional
fact. Much of the unionsÆ plight in the U.S. stems from the
anti-labor bias of government, government mediators, and the
laws passed by Congress. This is a direct result of the
restaurant lobbying effort mentioned in the preceding point.
The National Restaurant Association has fielded a magnificent
lobbying effort on Capital Hill, and they are reaping the rewards
.

Steve Kangas
kangaroo@scruznet.com
http://www.scruz.net/~kangaroo/GOVERNMENT_SUCCESS_STORIES.htm

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