The fast-food strikes over wages hit a global scale today. Workers staged protests in 150 U.S. cities and 33 countries to demand pay of $15-an-hour and the right to form a union.
The fast-food movement has come a long way from when it first began in New York City nearly 1-1/2 years ago.
Yahoo senior columnist Michael Santoli said even though the strikes bring attention to the fact that entry-level wages are stagnant, he doesn’t expect to get too far except in some localities, which have already raised the minimum wage.
Fast-food companies have been rapidly expanding overseas in an effort to increase sales. A big chunk of McDonald’s (MCD) revenue now comes from Europe and Asia. The fast-food giant has been struggling to boost sales in the U.S., which have been relatively flat.
“Nobody really thinks the economics of these companies can bear big increases in wages. I feel it is much more of a political issue, that is going to influence the corporate behavior," Santoli said.
Yahoo Breakout host Jeff Macke is also not optimistic that the strikes will force corporations to boost the minimum wage to $15-an-hour. “It is a pretty tough time to argue that there are no jobs available. If anything, this economy suffers from having too many low-end jobs,” he said.
- Consumer Discretionary
- Labor Issues
- minimum wage