Interesting Archives - Page 31 of 41 - I Hate Working In Retail

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The Sad, Slow Death of America’s Retail Workforce

There’s never been a better time to be a consumer. It’s not such a happy story for the people on the shopping floor and behind the counters.

Reuters

Retail sales just notched their best month since 2012 and the industry has added almost one million jobs since 2010. But the rosy headline stats obscure a more complex and potentially troubling story in retail—particularly for its employees.

The business of selling stuff is becoming much more efficient. Sales-per-employee have gone from $12,00 to $25,000 in the last two decades. That means that even as consumers spend more, we need fewer workers to stock shelves and process orders.

One reason retail has become so efficient is that more of it is happening across Internet cables rather than across registers. E-commerce is gobbling up one percentage point of total sales every two-and-a-half years. Call it the Amazon Effect.

And then there’s the Walmart Effect. As I’ve reported, one Walmart worker replaces about 1.4 local retail workers, so that a county sees about 150 fewer jobs in the years after a Walmart opens its doors. Combined with the Amazon effect, this has dramatically reduced our need for retail workers to sell things, and so retail’s share of the labor force, which peaked in the late 1980s, has been declining ever since.

This isn’t the end of retail. But it is the end of someretail.

According to data obtained by The Atlanticfrom EMSI, the retail industry gained about 49,000 jobs between 2001 and 2013, which means it grew by exactly 0.32 percent. Which means it didn’t grow.

But the major action is at the bookends of this graph below, which shows employment growth in the largest retail subcategories. Department stores, like JCPenney, lost more than 200,000 jobs this century. But supercenters like Walmart, which operates in more than 3,200 domestic locations, added half a million (often lower-paying) jobs.

The death of the salesmen isn’t a uniform trend. It’s spiky. Supercenters nearly doubled their total employment this century. But music stores, photo stores, computer stores, and book stores have been crushed. These used to be services you needed a store to buy. Now they’re apps. (Click this image to enlarge.)

Retail is already a famously low-income industry. According to the Fed, real hourly earnings for retail workers has actually decreased since 2007, the year the recession struck. The upshot is that we’re seeing a large industry stricken by the rise of the Internet, which is growing fastest into supercenters like Walmart that pay regularly low, if not minimum, wages to its employees. For consumers, there’s never been a better time to buy stuff. It’s not such a happy story for the people on the shopping floor and behind the counters

 

Sourced from theatlantic.com

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An Overwhelming Number Of Fast Food Workers Report Getting Ripped Off By Their Bosses: Poll

Macdonalds Sales

Before she got fed up and quit last month, it wasn’t uncommon for Darenisha Mills to keep working after her shift ended at the McDonald’s in Pontiac, Mich., where she was a cashier.

“They’re asking you to clean the bathrooms, sweep the lobby, run the register,” the 26-year-old told The Huffington Post, “but they don’t pay you anything for the time you work over.”

The formal name for that is wage theft, which occurs when an employer withholds pay rightfully earned by an hourly worker. It happens in a variety of ways, from not paying for overtime, to denying mandated breaks, to subtracting hours from employees’ weekly total.

A recent poll commissioned by labor group Fast Food Forward estimates that a stunning 89 percent of fast-food workers have experienced at least one form of wage theft. A previous study, conducted in the first half of 2008 before the recession, found 68 percent of low-wage workers had been victims of wage theft in their previous work week, and estimated that wage theft cost workers an average of $2,634 annually.

“The survey [from Fast Food Forward] lays bare the fact that wage theft is rampant,” said Tsedeye Gebreselassie, an attorney with the National Employment Law Project, which advocates for low-wage workers and performed the 2008 survey. “It’s pervasive throughout our economy.”

“They want to keep labor costs very low,” said Kwanza Brooks, 37, who was a McDonald’s manager for over a decade in Maryland and North Carolina before quitting a couple years ago. “Taking the wages was the only way they could control it,” says Brooks, who now volunteers for Fast Food Forward in Charlotte.

The Fast Food Forward poll found that 84 percent of McDonald’s workers who responded had experienced wage theft. Hart Research conducted the online survey between Feb. 15 and March 19 on behalf of “Low Pay Is Not OK,” a campaign affiliated with Fast Food Forward. The poll surveyed 1,088 fast food employees, including workers at Wendy’s and Burger King, in the top 10 metro areas nationally.

McDonald’s cautioned against drawing broad conclusions from the survey. In a statement the company called it a “small, random informal sampling.” The company said it believed workers should be paid correctly.

McDonald’s and its franchisees are now facing six lawsuits in three states, involving tens of thousands of employees, claiming various wage theft violations.

Wage theft can become increasingly common in times of high unemployment, experts say. “When people are desperate for jobs, they’re afraid to risk them by taking on their boss,” said Ross Eisenbrey, of the Economic Policy Institute, a left-leaning think tank.

And because the amounts of wages being withheld are often small, it can be hard for a low-wage worker to find an attorney willing to take their case.

For their part, fast-food managers are under “tremendous pressure” to keep labor costs low, especially when sales are sluggish, said Nelson Lichtenstein, the director of the Center for the Study of Work, Labor, and Democracy at the University of California Santa Barbara.

Companies may also engage in the practice when the risk of getting caught is low. There aren’t nearly enough U.S. Department of Labor investigators to enforce the laws, said Gebreselassie. He added, “The chance any worksite will be investigated is miniscule.”

Nevertheless, the issue of wage theft has been getting increased attention in recent months. In March, the owner of seven McDonald’s restaurants in New York was ordered to pay almost $500,000 to more than 1,000 employees who performed work off the clock and had other pay illegally withheld.

The restaurant chain’s sales have been slumping of late, and executives acknowledged recently that the company’s menu had grown complicated and less appealing to customers.

 

Sourced from thehuffingtonpost.com

 

 
 
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Getting Walmart Workers Off Food Stamps Would Cost Customers Barely Anything

 

Would you be willing to spend one penny more for a box of macaroni and cheese if it meant thatWalmart workers would no longer need food stamps to survive? Because that’s all it would cost, according to an analysis by American Public Media’s Marketplace.

While it’s unclear how many of Walmart’s workers are on food stamps, as many as 15 percent of the company’s employees in Ohio are. Applying that same percentage to the rest of Walmart’s workforce, Marketplace estimated the company would need an extra $4.8 billion to lift its average wages across the U.S. enough to get all of its workers off public assistance.

Walmart workers cost the government about $300 million a year in food-stamp costs, according to Marketplace. A single 300-employee Walmart store may cost taxpayersanywhere between $904,542 and nearly $1.75 million per year, a study by Democrats in the U.S. Committee on Education and the Workforce found.

Marketplace gets to its $4.8 billion figure by using an average wage for Walmart sales associates of $8.81 an hour. This figure, which was also cited in the congressional report by House Democrats — comes from market-research firm IBISWorld. Three years ago, an analyst at IBISWorld calculated the average based on job listings in urban areas, and posts submitted to the employer review site Glassdoor showed entry-level Walmart workers earning between $7 and $14, an IBISWorld spokesman told The Huffington Post.

Walmart spokesman Kory Lundburg told HuffPost the $8.81 figure was inaccurate.

“We don’t know how they arrived at that number,” Lundburg said in a phone interview. “It’s so off it’s laughable that they even try to cite it.”

He said waged workers earn $11.83 an hour, on average, and that 99 percent of the company’s employees make above the minimum wage.

But, as HuffPost has previously reported, Walmart’s formula for calculating average wages is murky and may exclude many part-time and temporary workers, while including some supervisors. And most Walmart workers made less than $25,000 in 2012.

In any event, Marketplace estimated that Walmart would need to raise average wages for low-level employees from $8.81 to $13.83 to get its workers off food stamps. And that would cost, in total, $4.8 billion.

Walmart is a mammoth company, so it would only need to raise prices by about 1.4 percent to cover that cost, Marketplace estimated.

To see what all this means for your mac-and-cheese, let’s walk step-by-step through Marketplace’s calculation:

Sales associates in urban areas earned an average of $8.81 an hour, according to the IBISWorld research number cited by Marketplace

walmart

A single mom working at Walmart for that wage might be eligible for food stamps. A two-person household can earn as much as $20,449 per year and still qualify.

walmart

For this single mom to no longer quality for food stamps, she would need to earn about $13.63 per hour at an average number of retail hours.

walmart

Paying that to employees claiming one dependent and working 30 hours a week, a federal average for retail workers, would cost Walmart an additional $4.8 billion each year. And unless the company wants to eat that cost, it would pass it on to customers in the form of higher prices.

How much higher? On average, about 1.4 percent, by Marketplace’s estimate.

walmart

How would that affect Walmart shoppers in real life? Well, a box of macaroni and cheese, which ordinarily costs this much:

walmart

Would now cost this much:

walmart

So paying this much more per box of macaroni and cheese:

penny

Would save the government this much in food stamp costs each year:

foodstamps

Watch the full video, part of Marketplace’s new series “The Secret Life of a Food Stamp,” here

Sourced from thehuffingtonpost.com

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