Fast Food: Henry Ford vs. the SEIU

Lose the muda, gain the wage

The Service Employees International Union (SEIU) is supporting strikes by fast-food workers who want $15 an hour. According to Workers’ World, “Most earn the federal minimum hourly wage of $7.25 or close to it. They are demanding that McDonald’s, Burger King, Wendy’s, Yum Brand, and their other corporate employers pay them $15 an hour. The Fight for $15 campaign is gaining strength and support.”

This is simply a new version of Jack Cade’s comic relief speech in King Henry VI, Part 2:

“Be brave, then; for your captain is brave, and vows reformation. There shall be in England seven halfpenny loaves sold for a penny: the three-hooped pot shall have ten hoops and I will make it felony to drink small beer: all the realm shall be in common; and in Cheapside shall my palfrey go to grass: and when I am king, as king I will be... there shall be no money; all shall eat and drink on my score; and I will apparel them all in one livery, that they may agree like brothers and worship me their lord.”

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Comments

Maybe the workers are right

Up to 1968 the minimum wage increased at the same rate as productivity growth. If that trend had continued, the minimum wage today would be over $16/hour (source: http://www.cepr.net/index.php/blogs/cepr-blog/the-minimum-wage-and-econ…). By that measure what these workers are asking for is not unreasonable.

fast food slow pay

The fast food industry certainly needs work: efficiency would be a good idea, as per the article; but livable wages should be everyone's right.

It just means that fast food is too cheap, if it cannot sustain people on livable wages.

Rights?

Nobody has a "right" to any wage.

leaders encourage

Mark please do me a favour. Look at your comments and ask yourself is this how a thought leader should communicate. Is this the lean way, I think not.

By Ford !

I'm no supporter of any fordism-like management style, nor I support any unionism excess: the risk is a tug-of-war between the two claimants who may well work together under cover to get what they want, at the workers' expense. Waste is still everywhere: in 1994 we spoke of the Black Factory, wasting one third of its resources; 20 years after, despite any and all go-lean and 6-sigma-ing projects, we are more or less still there. May be a Mr. Ford should arise from his grave and shake both Unions' and Entrepeneurs' shoulders.

Careful what you wish for!

Go ahead and give them their $15/hr. The victory will be short lived. As stated in teh article, no job is worth more than the value it creates. The automation of the fast-food industry cannot be economically justified when wages are $7-10/hr. But I'll bet the economics of the "completely automated fast-food front end" look a lot better when labor is $15/hr.