Hundreds of workers from fast food outlets across New York City went on strike Wednesday morning, demanding higher wages and recognition for a new union called the Fast Food Workers Committee. This strike is only the latest in a spate of labor actions within service and retail sectors over the past few years, the most recent of which was the Black Friday Walmart strike.
Low-wage service and retail organizing “really seems to be exploding now,” said Columbia professor Liza Featherstone, a frequent reporter and commentator on labor issues. In addition to Walmart and New York fast food chains, a number of other service and retail employers have also seen recent labor action: The SEIU’s Justice for Janitors campaign has organized tens of thousands of janitors since 1990s; young restaurant workers have become increasingly militant, and just this week, bakers at New York’s Hot and Crusty signed their first union contract.
What all of these workplaces have in common is that they use low-wage labor in what have become linchpin industries for the U.S. economy. “With the substantial number of people employed in the retail industry, I think it’s very analogous to what manufacturing used to be,” said Featherstone.
Indeed, as the number of American workers employed in manufacturing has steadily declined since the mid-1970s, the service sector’s population has exploded. However, most of the recent growth has been in precarious labor: jobs with low pay, very high turnover and few benefits. The fast food industry offers some of the worst of these jobs, hence the “McJobs” monicker often applied to low-wage service or retail work. According to the Bureau of Labor Statistics, fast food work is the lowest-paying occupation in America, and the median salary for a fast food worker in 2010 was $18,130 a year—meaning that the average fast food worker in 2010 was at exactly the federal poverty line for a family of three.
According to labor journalist Sarah Jaffe, organizers for the fast food strike found poverty-level conditions when they began speaking to workers. “They’ve found that overwhelmingly, those workers can’t afford basics like food, rent, or a Metrocard to get to work,” wrote Jaffe.
Featherstone said that the recession may have laid the groundwork for the recent wave of strikes. “There’s been a leaner and leaner corporate response to economic hard times,” she said. Companies have grappled with the downturn by looking for areas to cut costs, and one of the major ways they’ve done that is by trying to extract more labor from their employees in exchange for less pay.
Exhibit A would be Walmart, where same-store sales dropped 1.8% between 2009 and 2010. “Walmart hasn’t been able to grow in recent years as it once was, and its sales have been sort of disappointing to its shareholders,” said Featherstone. “Walmart has been taking out its troubles, as companies are wont to do, on its workers.”
The fast food industry has weathered the economic downturn more successfully than Walmart; McDonald’s sales actually increased in the year after the collapse. As profits increased, so did employment: other industries continued to stagnate post-collapse, while the fast food industry surpassed its previous employment peak. The fact that so much of recent job creation has been concentrated in low-wage service and retail sector jobs has led some to label the current economic climate as “the McJobs economy.” The number of new workers who felt they had no other choice but to work in the fast food industry may have contributed to overall worker dissatisfaction with their labor conditions—and, therefore, set the stage for a strike.









