Campaign to Raise the Minimum Wage Continues

As we reported briefly in last week’s edition, hundreds of members of our Union turned out at a May 7 rally to raise the minimum wage. The featured speaker at the Union Square rally was Governor Andrew Cuomo, and he did not mince words in saying that New York’s working poor deserve a raise. Cuomo’s remarks were not political rhetoric. He backed them up with executive action.

Members will recall that the Governor is already responsible for an increase in the minimum wage for tipped employees. A three-member wage board was appointed to study the issue of the minimum wage for tipped employees—which is far lower than the minimum wage for non-tipped employees. One of the members appointed to that wage commission was Hotel Trades Council President Peter Ward. Earlier this year the wage commission recommended to New York State Labor Commissioner Mario Mussolino that there should be an increase in the minimum wage for tipped employees. Mussolino enacted the increase, and the announcement was made by Governor Cuomo in our Union’s auditorium on March 2.

The rally on May 7 addressed an increase in the New York State minimum wage for non-tipped employees and especially those who work in fast food restaurants. It is expected that this increase would go far beyond the one that is currently scheduled (the NYS minimum wage will rise from $8.75 to $9 an hour at the end of this year). The response of the large crowd at the rally showed that New Yorkers are very enthusiastic about this idea.

Cuomo began his remarks by saluting the unions that were present. He also introduced a number of elected officials who were present and who support raising the minimum wage, including Members of Congress Carolyn Maloney, Jose Serrano and Gerald Nadler, and New York City Comptroller Scott Stringer and Public Advocate Letitia James. He then pointed out that income inequality in the U.S. is at an all time high. He noted that while many say the way to fix this problem is by taking money from the top wage earners, he believes the way to rectify income inequality is by “lifting up the bottom.”

Cuomo reminded people that he called for an increase in the minimum wage in this year’s state budget, but that the legislature—specifically, the State Senate—rejected it.

“So I am continuing the fight,” Cuomo said. “While lawmakers delay, I am taking action.”

Cuomo explained that New York State law gives Labor Commissioner Mussolino the right to impanel a wage board to recommend what adequate wages should be in a specific industry or job classification. “I am directing the Commissioner to impanel such a board to examine the minimum wage in the fast-food industry,” Cuomo said, “and the board will return in about three months with its recommendations, which do not require legislative approval.”

The crowd greeted this announcement with robust cheering. But Cuomo wasn’t finished.

“Nowhere is the income gap more extreme and obnoxious than in the fast-food industry,” he said. “The average fast-food CEO made $23.8 million in 2013. Meanwhile, entry-level food-service workers in New York State earn, on average, $8.50 an hour.”

Cuomo said fast-food workers are twice as likely to need public assistance than other working families. He noted that New York State ranks first in public assistance for fast-food workers—$6,800 per worker, which is $700 million statewide per year—while the industry itself is enjoying enormous profits.

“McDonald’s brought in $4.67 billion last year; Burger King earned $291 million,” Cuomo said. “The government is subsidizing these corporations, allowing them to keep their labor costs low and their profit margins high, and I’m not going to stand for it!”

Cuomo said the argument that raising the wages of fast food workers would raise the prices of burgers, fries, tacos, etc., has not been the case at all in other countries, and he gave several specific examples. He also said that more than 600 economists have said that raising the minimum wage for the lowest-paid workers does not damage the economy; on the contrary it stimulates consumer spending and helps the economy.

“Studies have shown that every dollar increase for a minimum-wage worker results in $2,800 in new consumer spending by household, and of the 13 states that have increased the minimum wage since 2014—including New York—all but one experienced employment growth,” Cuomo said.

The Governor said, “I want New York State and our taxpayers to stop subsidizing the low wages paid by fast food companies. I want to take New York State out of the hamburger business. I’m tired of huge profits based on low wages. It violates the promise of this country! Let New York lead the way nationally to allow fast food workers to live in dignity.”

Cuomo closed his remarks by reminding everyone that President Franklin D. Roosevelt was criticized harshly by big business when he was pushing hard for a federal minimum wage to be included in the historic Fair Labor Standards Act that was enacted in 1938.

Like Cuomo today, Roosevelt did not mince words. While campaigning for the institution of a federal minimum wage FDR said, “No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.”

It was obvious from the rally that Cuomo feels the same way. As a result of his actions, the 180,000 fast food workers throughout New York State, including the 85,000 in New York City, have reason for hope.

The drive to increase the minimum wage in New York is a human rights campaign,” Peter Ward said back in March. “While all of our members earn far above the minimum wages for both tipped and non-tipped employees, that doesn’t mean we shouldn’t fight for those who are forced to work for wages that keep them and their families below the poverty level. Our Union strongly supports Governor Cuomo on this issue and I personally thank all members who attended the rally in Union Square last week.”

Hundreds of members turned out for last week’s Union Square rally to increase the minimum wage.

Elected officials greeting members of our Union. From left to right are: Congressman Jose Serrano, Congresswoman Carolyn Maloney, New York City Comptroller Scott Stringer and New York State Governor Andrew Cuomo.

Here are just some of the many members who turned out for last week’s rally to raise the minimum wage.