Corporate Harassment

By Phil Mattera

People who are subjected to sexual harassment on the job are too often left to confront their abusers on their own. Those with means can hire high-powered legal help, as Gretchen Carlson did in her lawsuit against 21stCentury Fox that resulted in a $20 million settlement. Other survivors of abuse may not get justice.

A new initiative by Fight for $15 is making the fight against workplace harassment a collective rather than an individual struggle. In a bold new initiative for the labor movement, the campaign recently organized work stoppages at McDonald’s fast-food outlets in ten cities to protest harassment and to highlight complaints filed earlier this year with the U.S. Equal Employment Opportunity Commission.

This will not be the first time the EEOC has heard reports about such practices at McDonald’s. In 2010, for example, the company had to pay $50,000 to settle allegations of harassment by an assistant store manager in New Jersey who was reported to have touched and spanked a teenage worker.

For years, the company failed to take adequate action to deal with repeated instances in which female workers were falsely accused of stealing customer property and strip-searched by managers in response to phone calls from individuals pretending to be law enforcement officers. In 2007 McDonald’s had to pay $6.1 million to settle a lawsuit filed by a young worker in Kentucky who was also molested.

The decision of a state appeals court upholding the damage award noted that similar incidents had occurred more than 30 times at McDonald’s outlets. The ruling went on to say: “McDonald’s corporate legal department was fully aware of these hoaxes and had documented them. The evidence supports the reasonable conclusion that McDonald’s corporate management made a conscious decision not to train or warn store managers or employees about the calls.”

Corporate decisions not to take steps to protect workers were also behind many of the more than 275 cases documented in Violation Tracker in which corporations paid to settle sexual harassment allegations brought with the involvement of the EEOC. These cases together have yielded $132 million in penalties.

The tally goes back to 2000, but cases continue to the present. Among the most recent ones are the $3.75 million harassment settlement signed by Koch Foods involving poultry workers in Mississippi who also alleged racial and national origin discrimination as well as the $3.5 million settlement by outsourcing company Alorica in connection with allegations that a group of customer service representatives in California were subjected to a sexually hostile work environment.

To supplement the EEOC actions I’m in the process of collecting data for Violation Tracker on class action and individual lawsuits brought by workers separate from the agency. These will cover harassment claims as well as cases involving discrimination by employers based on gender, race, national origin, religion, sexual orientation, disability and age discrimination. I’ve already tallied more than $1 billion in settlements and verdicts involving the largest corporations.

It’s great that the MeToo and the Fight for $15 movements are highlighting the continuing problems of harassment on the job. I look forward to the day when there will not be so many such cases to document.

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Reposted from Dirt Diggers Digest

Posted In: Allied Approaches

Union Matters

Federal Minimum Wage Reaches Disappointing Milestone

By Kathleen Mackey
USW Intern

A disgraceful milestone occurred last Sunday, June 16.

That date officially marked the longest period that the United States has gone without increasing federal the minimum wage.

That means Congress has denied raises for a decade to 1.8 million American workers, that is, those workers who earn $7.25 an hour or less. These 1.8 million Americans have watched in frustration as Congress not only denied them wages increases, but used their tax dollars to raise Congressional pay. They continued to watch in disappointment as the Trump administration failed to keep its promise that the 2017 tax cut law would increase every worker’s pay by $4,000 per year.

More than 12 years ago, in May 2007, Congress passed legislation to raise the minimum wage to $7.25 per hour. It took effect two years later. Congress has failed to act since then, so it has, in effect, now imposed a decade-long wage freeze on the nation’s lowest income workers.

To combat this unjust situation, minimum wage workers could rally and call their lawmakers to demand action, but they’re typically working more than one job just to get by, so few have the energy or patience.

The Economic Policy Institute points out in a recent report on the federal minimum wage that as the cost of living rose over the past 10 years, Congress’ inaction cut the take-home pay of working families.  

At the current dismal rate, full-time workers receiving minimum wage earn $15,080 a year. It was virtually impossible to scrape by on $15,080 a decade ago, let alone support a family. But with the cost of living having risen 18% over that time, the situation now is far worse for the working poor. The current federal minimum wage is not a living wage. And no full-time worker should live in poverty.

While ignoring the needs of low-income workers, members of Congress, who taxpayers pay at least $174,000 a year, are scheduled to receive an automatic $4,500 cost-of-living raise this year. Congress increased its own pay from $169,300 to $174,000 in 2009, in the middle of the Great Recession when low income people across the country were out of work and losing their homes. While Congress has frozen its own pay since then, that’s little consolation to minimum wage workers who take home less than a tenth of Congressional salaries.

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A Friendly Reminder

A Friendly Reminder