Fight for $15 facts for kids
The Fight for $15 is a movement in the United States that wants to raise the minimum wage to $15 per hour. The minimum wage is the lowest amount of money an employer can legally pay workers. The federal minimum wage in the U.S. was set at $7.25 per hour in 2009.
This movement started in 2012. Workers felt they couldn't afford basic needs like food and housing on such low pay. They also faced tough working conditions. The Fight for $15 has involved many strikes by workers. These include people who work in child care, home healthcare, airports, gas stations, convenience stores, and fast food restaurants. They want higher wages and the right to form a labor union. A labor union is a group of workers who join together to protect their rights and improve their working conditions.
The movement has had success in many states and cities. States like California, Massachusetts, and New York have passed laws to slowly raise their minimum wage to at least $15 per hour. Big cities like San Francisco and Seattle, where living costs are high, have already reached $15 per hour. At the national level, the idea of a $15 minimum wage has become more popular among Democratic politicians.
In 2019, the House of Representatives passed a bill called the Raise the Wage Act. This bill would have gradually raised the federal minimum wage to $15 per hour. However, it did not pass in the Senate. In 2021, a similar bill was introduced again. The Congressional Budget Office (CBO), which studies government spending, estimated that raising the wage to $15 by 2025 would help 17 million workers. But it also estimated it could reduce jobs by 1.4 million.
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Strikes and Protests in the United States
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On November 29, 2012, over 100 fast-food workers in New York City went on strike. They worked at places like McDonald's, Burger King, and Wendy's. They wanted higher wages, better working conditions, and the right to form a union. Many workers were earning the minimum wage, or even less due to "wage theft." Wage theft is when employers illegally don't pay workers all the money they've earned. This was the biggest strike ever in the fast-food industry.
Earning low wages meant many fast-food workers needed multiple jobs. Some also needed government help like food stamps to afford basic food, shelter, and clothes. Experts say these wages are below what is considered a "living wage" in New York City. A living wage is the amount of money needed to cover basic costs of living.
This first strike was organized by several groups, including New York Communities for Change. On April 4, 2013, more than 200 fast-food workers went on strike in New York City again. This date was chosen because it was the 45th anniversary of the assassination of Martin Luther King Jr. during the Memphis sanitation strike. Soon after, hundreds of workers went on strike in other cities like Chicago, Detroit, and Seattle.
On July 29, about 2,200 workers went on strike in all the cities that had protested before, plus new ones. A large national fast-food strike happened on August 29. In Seattle, Washington, these protests helped convince city leaders to raise the minimum wage to $15.
More fast-food strikes happened nationwide on December 6, 2013. The goal was still to raise the minimum wage to $15 per hour. On September 4, 2014, another national strike took place in over 150 cities. This time, thousands of Home care workers joined the fast-food workers. Organizers also encouraged acts of civil disobedience, like sit ins, to get more attention. Many people were arrested during these protests.
On December 4, 2014, thousands of fast-food workers walked off their jobs in 190 U.S. cities. They were joined by caregivers, airport workers, and employees at discount stores. These strikes were also fueled by anger over unfair treatment. Protesters chanted "15 and a union" and other slogans about justice. Organizers said the strikes were "fights against injustice in the U.S." Groups like Black Lives Matter supported the strike.
On April 15, 2015, tens of thousands of low-wage workers protested in over 200 cities. This was described as the largest protest by low-wage workers in U.S. history. Besides fast-food workers, home care assistants, Walmart workers, child-care aides, and airport workers joined in. A professor named Gary Chaison noted that this movement is special. He said it's not just about union members protecting themselves, but about helping many different low-wage workers improve their lives.
Another strike happened in November 2015. U.S. Senator Bernie Sanders showed his support for the striking workers and a $15 federal minimum wage at a rally in Washington D.C.
Global Strikes and Protests
On May 15, 2014, fast-food workers around the world went on strike. This included workers in Brazil, the United Kingdom, Japan, and the U.S. They protested low wages and demanded a $15 minimum wage. They also wanted the right to form unions without fear of punishment. These strikes happened in 230 cities.
Less than a week later, a large protest took place at McDonald's headquarters in Illinois. Over 100 protesters were arrested, including workers and church leaders. According to organizers, protests also happened in 30 cities in Japan, 5 cities in Brazil, 3 cities in India, and 20 cities in Britain. A large international labor group with over 12 million workers joined the effort.
Some industry officials say that only a small number of fast-food jobs pay minimum wage. They claim these are mostly entry-level jobs for young workers under 25. However, supporters of the movement point to studies showing that the average age of fast-food workers is 29. More than a fourth of them are parents raising children.
Mary Kay Henry, a union president, said that fast-food workers worldwide face similar problems. These include low pay, no guaranteed work hours, and no benefits. She believes this unfairness exists because workers can't easily form unions. One McDonald's worker said the minimum wage wasn't enough to care for his kids or their education. However, some experts worry that raising wages could lead to fewer jobs.
In the United Kingdom, protesters carried signs saying "Fast Food Rights" and "Hungry for Justice." They also protested "Zero Hours" contracts. These contracts don't guarantee workers any hours but expect them to be available whenever called. In the Philippines, workers held a flash mob inside a McDonald's, singing and dancing to "Let It Go" from the movie Frozen. They urged McDonald's to "let go" of low wages and allow workers to organize. Protesters in Brussels shut down a McDonald's. In Mumbai, protesters were not stopped by threats of arrest. Japan saw protests in almost every area, calling for McDonald's to pay Japanese workers 1,500 yen.
This wasn't the first time workers protested low wages. On November 29, 2012, about 200 workers protested at a McDonald's in New York City. They chanted, "Hey, hey, what do you say? We demand fair pay." According to Kate Bronfenbrenner, a labor expert, global worker campaigns are not new. She says they date back to the 1800s, when workers in Britain and India protested how the East India Company treated its Indian workers.
Some economists and labor activists look to countries like Denmark. Denmark has strong unions and pays fast-food workers a living wage. They believe this shows that companies can still be profitable even with high wages. John Schmitt, an economist, said, "We see from Denmark that it's possible to run a profitable fast-food business while paying workers these kinds of wages." However, Stephen J. Caldeira, who represents many fast-food companies, disagrees. He says comparing Denmark and the U.S. is like "comparing apples to autos."
A study in January 2015 by economists at the University of Massachusetts at Amherst found that fast-food companies could handle a wage increase from $7.25 to $15. They believed companies could do this without cutting jobs by reducing employee turnover and slightly raising prices.
Affected Industries
Restaurant Industry
The restaurant industry is a main focus of the Fight for $15 movement. According to government data from 2018, restaurants and other food services employ about 60% of all workers paid at or below the minimum wage. When minimum wages go up, restaurants often cut employee hours or raise menu prices. In cities like New York City and Seattle, where a $15 minimum wage is already in place, menu prices have increased.
Economists from the Economic Policy Institute largely support a $15 federal minimum wage. Their plan suggests a gradual increase, reaching $15 by 2024. They argue that fast-food restaurants could handle this wage increase. They believe it would not force restaurants to lay off employees. This is because of things like fewer employees leaving their jobs, continued sales growth, and small yearly price increases. Supporters of the movement accept that prices might rise. They believe this won't greatly harm dining or overall sales. They also point to research showing that minimum wage increases have a very small effect on the number of jobs.
A common argument against raising the minimum wage to $15 in restaurants is that it could lead to fewer employee hours, job losses, or even restaurant closures.
Some food service workers, like waiters and bartenders, mainly earn money from tips. They may be paid a lower "tipped minimum wage," which is currently $2.13 per hour federally. A "tip credit" accounts for the difference if their tips don't add up to the full minimum wage. Many who support a $15 minimum wage believe restaurants should stop using this tip credit system. They think it doesn't help low-wage restaurant workers.
Retail
In 2018, over 11 million retail workers were paid at or below the federal minimum wage. Retail workers make up a large part of those affected by minimum wage issues. Big stores like Target and Walmart are a key focus. Recently, some companies, including Target and Best Buy, have decided to raise their starting hourly wage to $15. They are doing this even without local or federal rules. As pressure grows, more stores are increasing wages. This helps meet social demands and also leads to happier, more productive workers.
Health Care
Health care is one of the biggest industries in the U.S., with about 18.6 million workers in 2019. The number of jobs is still growing. In 2019, nearly 7 million people worked in low-paid health care jobs. Their average wage was $13.48 per hour for support, service, and direct care roles. Because there's a big difference between these wages and the much higher pay for doctors and nurses, the fight for a living wage in health care has gained support.
Achievements
In Washington state, two cities have been called test cases for the $15 minimum wage. In SeaTac, a small town near the Seattle–Tacoma International Airport, the minimum wage went up to $15 per hour in 2014 all at once. This got a lot of media attention. In 2014, Seattle became the first major U.S. city to raise its minimum wage to $15 per hour. This campaign was led by city council member Kshama Sawant and supported by many labor unions and other groups. Seattle's minimum wage for large employers reached $15.45 in 2018 and $16 in 2019. Studies of Seattle's workforce have shown no decrease in jobs and clear benefits for workers.
The Fight for $15 movement has successfully raised the minimum wage to $15 or more in several states and cities. In California, the minimum wage has been raised in steps since 2016 and will reach $15 per hour in 2022. Several California cities, including San Francisco and San Jose, have already reached $15 or more. Massachusetts passed a law in 2018 to raise its state minimum wage to $15 per hour by 2023. New York state will raise the minimum wage in the Downstate region to $15 per hour in 2021. In New Jersey, the minimum wage will reach $15 per hour in 2024. In 2019, both Maryland and Illinois passed laws to gradually raise their state minimum wage to at least $15 per hour. In May 2019, Connecticut passed a $15 per hour law. On November 3, 2020, voters in Florida approved a measure to raise the minimum wage to $10.00 per hour in 2021, and then increase it by $1.00 per hour each year until it reaches $15.00 per hour in 2026.
When New York City's minimum wage was set to reach $15 an hour by the end of 2018, a writer for the New York Times said it was a direct result of the Fight for $15 protests. He wrote that the movement started by fast-food workers in New York City had led to higher wages for workers across the country.
A $15/hour minimum wage at Amazon started in November 2018. It is estimated that because of state and local minimum wage laws passed since the Fight for $15 began, about 26 million workers have received $151 billion in raises.
Exceptions
Sometimes, states and cities that raise their minimum wage to $15 per hour include exceptions. This means certain employers or types of employees might be allowed to be paid less. This is usually done to try and avoid any negative effects on the economy.
Employers and industries with labor unions are sometimes exempt from paying the full minimum wage. This is meant to encourage the growth of organized labor. For example, unions were exempt from recent minimum wage increases in Chicago and some California cities. In San Francisco, a labor union can be exempt if its agreement specifically says it doesn't need to follow the minimum wage rule.
In New Jersey, where the general minimum wage will reach $15 per hour in 2024, farmworkers are an exception. Their minimum wage will be set at $12.50.
Estimated Economic Impact of Federal $15 Wage
In February 2021, the Congressional Budget Office (CBO) released a report on the Raise the Wage Act of 2021. The report estimated that raising the federal minimum wage to $15 an hour by 2025 would help 17 million workers. However, it also estimated it would reduce employment by 1.4 million people. It would also lift 0.9 million people out of poverty. The CBO also estimated it could slightly increase wages for another 10 million workers. It might also increase the federal budget deficit by $54 billion over ten years. This is because the cost of goods and services paid for by the government would increase. The report also suggested that prices would rise, and overall economic output would slightly decrease over the next 10 years.
Some economists have disagreed with parts of the CBO's report. University of California, Berkeley's Michael Reich estimated that a $15 minimum wage could actually increase federal tax revenue by $65 billion each year. This would happen because of more payroll taxes and less government spending on social programs. Another economist, Arindrajit Dube, thought the job losses would be less than 500,000.
See also
- List of countries by minimum wage
- Income inequality in the United States
- Justice for Workers (Canadian movement)
- Labor history of the United States
- One Fair Wage
- Poverty in the United States
- McDonald's and unions
Images for kids
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A July 29, 2013 protest outside a McDonald's in New York City.
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Minimum wage by U.S. state, Washington, D.C., and territory. In states with lower or no minimum wage, federal rates apply to workers covered by the Fair Labor Standards Act. Special minimum wages apply to some workers in American Samoa.
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US state minimum wages.
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Minimum wage by U.S. state, District of Columbia, and U.S. territory. Federal rate applies in states with no minimum wage. Territories listed in this table (see bottom of columns too): GU = Guam. VI = U.S. Virgin Islands. PR = Puerto Rico. CNMI = Northern Mariana Islands. See List of U.S. state and territory abbreviations.
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History of the federal minimum wage. Lower line is nominal dollars. Top line is inflation-adjusted.
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Strike and a protest march for a $15 minimum wage in Dinkytown, Minnesota.
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The fall 2013 issue of Ms. magazine about fast food worker wages.
