#Raisethewage & McDonalds Tells Workers To Budget By Getting A Second Job And Turning Off Their Heat 24&15JUL13

NOBODY can live on the current minimum wage of $7.25 an hour. It is wrong to keep people in poverty when corporations can afford to pay more just by reducing the obscene pay packages they now provide to their ceos and executive boards. Pres Obama called on Congress to raise the minimum wage to $10.10 in his State of the Union speech in Jan this year, but because so many members of Congress represent the interest of the rich and corporate masters who paid for their elections nothing has been done. This petition calls on Congress to boost the economy by passing the Fair Minimum Wage Act, introduced by Rep George Miller D CA and Sen Tom Harkin D IA and it is followed by Think Progress' article on mcdonald's budgeting advise to their employees.
 
Could you make ends meet if you earned $7.25 an hour? Probably not.

Four years ago today was the last time the federal minimum wage was raised. And it still doesn’t keep up with inflation or the rising cost of living. In fact, just recently McDonald’s (a company notorious for low wages) posted a “budget template” geared toward helping employees manage their finances and save. The only catch was that the budget assumed the employee had two jobs.¹

Even McDonald’s admits the minimum wage is too low for workers to survive on.
Click here to sign our petition asking Congress to raise the minimum wage.
In his State of the Union address this year, President Obama signaled his support for raising the minimum wage. And in March, U.S. Rep. George Miller (D-Calif.) and Sen. Tom Harkin (D-Iowa) introduced the Fair Minimum Wage Act. This bill would increase the minimum wage to $10.10 an hour.

Workers need this raise—more than 4.4 million workers currently earn minimum wage in the United States. Our economy needs it, too. According to the Economic Policy Institute, raising the minimum wage to $10.10 would grow the economy and could create 140,000 new jobs over three years. Now it’s up to Congress to make it happen. And they need to hear from you.

Will you add your name to our petition asking Congress to raise the minimum wage?

go.aflcio.org/raise-the-wage

In solidarity,

Nicole Aro
Director of Digital Strategies, AFL-CIO

McDonalds Tells Workers To Budget By Getting A Second Job And Turning Off Their Heat

By Annie-Rose Strasser on Jul 15, 2013 at 3:15 pm

McDonalds has partnered with Visa to launch a website to help its low-wage workers making an average $8.25 an hour to budget. But while the site is clearly meant to illustrate that McDonalds workers should be able to live on their meager wages, it actually underscores exactly how hard it is for a low-paid fast food worker to get by.
The site includes a sample “budget journal” for McDonalds’ employees that offers a laughably inaccurate view of what it’s like to budget on a minimum wage job. Not only does the budget leave a spot open for “second job,” it also gives wholly unreasonable estimates for employees’ costs: $20 a month for health care, $0 for heating, and $600 a month for rent. It does not include any budgeted money for food or clothing.

Basically every facet of this budget is unachievable. For an uninsured person to independently buy health care, he or she must shell out on average $215 a month — just for an individual plan. While some full-time McDonald’s workers do qualify for the company’s $14 a week health plan, that offer caps coverage at $10,000 a year and is often insufficient. If that person wants to eat, “moderate” spending will run them $32 a week for themselves, and $867 a month to feed a family of four. And if a fast food worker is living in a city? Well, New York City rents just reached an average of $3,000 a month.
The sample budget is also available in Spanish. On another section of the site, it concludes, “You can have almost anything you want as long as you plan ahead and save for it.”
Neither McDonalds nor Visa returned requests for comment by the time of publication.
Last year, Bloomberg News found that it would take the average McDonalds employee one million hours of work to earn as much money as the company’s CEO. This immense wage disparity in the fast food industry has sparked a series of protests and walk-outs by low-wage workers working at fast food chains around the country — in New York, Chicago, Washington, and Seattle, to name a few cities, workers from chains including KFC, McDonalds, Burger King, and Taco Bell have spoken publicly about the need for serious wage increases across the industry.
(HT: Low Pay Is Not Okay)

Update

A McDonalds spokesperson provided this statement to ThinkProgress:

“In an effort to provide free, comprehensive money management tools, McDonald’s first used the Wealth Watchers International budgeting journal when this financial literacy program launched in 2008.
As part of this program, several resources were developed including a sample budgeting guide, an instructional video and a web resource center that had additional tools and information.
The samples that are on this site are generic examples and are intended to help provide a general outline of what an individual budget may look like.”

Update

By Tuesday, it appears that McDonalds has quietly gone in and changed its sample budget slightly. It now includes $50 spending on heat — money taken from the monthly spending.

^₁ http://thinkprogress.org/economy/2013/07/15/2300321/mcdonalds-buget-low-wage/