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BUSINESS Thursday 23 May 2019
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$15 minimum wage becomes part of 2020 presidential landscape
By NICHOLAS RICCARDI Donalds has argued that
Associated Press whether to allow unions is a
From liberal firebrands Ber- decision for the franchisees
nie Sanders and Elizabeth who own the restaurants
Warren to moderates Joe and employ the workers,
Biden and John Hicken- not for the corporation. La-
looper, nearly the entire bor groups worry that the
2020 Democratic presiden- new Republican-appoint-
tial field agrees that the ed majority on the National
federal minimum wage Labor Relations Board will
should be more than dou- prevent unions from forcing
bled, to $15 an hour. McDonald's to bargain for
That near-unanimity re- those employees.
flects the success of an un- The tight job market has led
orthodox campaign by the some companies like Ama-
Service Employees Interna- zon and Target to offer a
tional Union called the Fight $15 minimum wage. But
for 15. It launched in 2012 even though the $15 mini-
to help nonunion McDon- mum wage has largely uni-
ald's workers who walked fied the Democratic presi-
off their jobs as cooks and dential hopefuls — only
servers agitate for a then- technology entrepreneur
unthinkable $15 minimum Andrew Yang opposes it,
wage. Now, according to arguing he'd rather have
the National Employment the government pay peo-
Law Project, one-third of ple directly — a bill to im-
the country will have a $15 This Oct. 24, 2016, file photo shows dollar bills in New York. Almost the entire 2020 Democratic plement a national wage
minimum wage as gradual presidential field has joined the labor movement driven by fast food workers to implement a fed- at that level is stalled in
increases in bedrock Dem- eral minimum wage of $15. the Democratic-controlled
ocratic states like Califor- Associated Press House of Representatives.
nia, Illinois and New York Democratic moderates
kick in over the coming tional union membership Still, unions also need dues- board meeting in Dallas on worry it would be an eco-
years. has dwindled. paying members, and the Thursday. nomic shock to areas that
Ernie Tedeschi, an analyst "The labor movement is re- movement is redoubling its "That's the lynchpin of the don't already have high
at Evercore ISI, calculated inventing themselves as a efforts this week to pressure thing that we're asking wages. A few booming
the de facto national mini- new civil rights movement McDonald's into letting its elected officials to respond cities like Seattle and San
mum wage at a historic by helping workers in ways workers unionize. Demo- to," said Mary Kay Henry, Francisco have already hit
high of $12 an hour when beyond collective bargain- cratic presidential aspirants SEIU's president, who has a $15 minimum wage, and
accounting for a flurry of ing," said Gary Chaison, an like New Jersey Sen. Cory been demanding that pres- evidence on the impact is
recent city and statewide industrial relations professor Booker, former Housing idential aspirants also detail mixed, with some studies
increases . Officially, the at Clark University in Massa- and Urban Development how they'll make it easier showing that higher wages
federal minimum wage is chusetts. "This may be the Secretary Julian Castro and for workers to join unions. are boosting local econo-
still $7.25 an hour. last national political con- Washington Gov. Jay Inslee "We're trying to make a mies but others following
Other than the sudden test for the unions. A loss will join workers on picket demand for a union about the traditional patterns that
jump on wages and its hold means the loss of relevancy lines this week, and Sanders having a seat at the table economists warn about
in the Democratic primary, as a workplace voice, and will host a video town hall that allows workers to be with minimum wage hikes
the Fight for 15 is also show- a win means a new pur- with employees of the fast- able to have a say in how — that they can lead to
casing a different form of pose for the unions, outside food giant who will protest decisions are made." fewer jobs by raising busi-
labor organizing as tradi- of collective bargaining." outside the company's That may not be easy. Mc- ness payroll costs.q