McDonald's and Wal-Mart Criticized for Low Wages
ROMANS: As if the "Do you want fries with that?" economy was bad enough, but now workers are left to ask, do you want food stamps with that? This week an advocacy group called Low Pay is Not OK posted a recording of a McDonald's employee calling the McResource help line. During the call the operator advises the worker to apply for food- stamps and Medicaid.</s>UNIDENTIFIED FEMALE: Do you have kids?</s>UNIDENTIFIED FEMALE: Yes, two kids.</s>UNIDENTIFIED FEMALE: You would most likely be eligible for SNAP benefits.</s>ROMANS: Also this week, Wal-Mart's CEO revealed the majority of the workers make less than $25,000 a year. Both companies say the headlines have been taken out of context. McDonald's says the video is not an accurate portrayal of the resource line, and Wal-Mart says many of the employees are part-time by choice, which helps explain low annual salaries. But the bottom line here is not about the he said/she said of the details. It's the glaring fact these are people with jobs struggling to get by in this economy. The question, is it time again to start talking about a $15 minimum wage? Mid wage jobs were hit the hardest during the recession. What's coming back? Low-wage positions like those in fast food and retail. Now, these used to be thought of as a gateway job for young people, but for many today these are careers. The median age of a fast food worker is 29 years old. And more than half of those workers get government assistance. That cost taxpayers an estimated $7 billion a year. In an era of endless stalemates between the right and left, no one can be happy here. Conservatives decry the exploding government entitlement programs that fill the gap. Liberals express outrage that profitable billion dollar companies have employees forced to make decisions like this.</s>SHENITA SIMON, FAST FOOD WORKER: Sometimes my husband eats and I don't and sometimes I eat and my husband don't. We have to alternate like that because we can't eat every day and still supply for our children three meals per day.</s>ROMANS: Look, a $15 minimum wage may not be the answer, but it's hard to deny this economy is not working for everyone. Meantime, workers demanding higher wages not the only issue for McDonald's these days. Between controversies and sluggish sales, is the shine off the golden arches?</s>ROMANS: Seen the Hamburglar lately? It might be time for McDonald's to bring back the burger bandit. Slow sales, menu flops reaching beyond the brand, and now the end of the dollar menu as we know it. Starting in November, get ready for the dollar menu and more with new items up to $5. McDonald's CEO says it promotes value at different price points. It's the latest attempt to bring in business and bank more bucks. And Burger King is trying to play the fitness first game with low fat fries. But are customers satis-fried? It's too early to tell. Meanwhile, Wendy's is getting a makeover. Wendya's is revamping its image and its stock price has doubled in the last year. Its sizzling new menu item, a pretzel bacon cheese burger.</s>HOWARD PENNEY, MANAGING DIRECTOR, HEDGEVE RISK MANAGEMENT: Wendy's has definitely gotten back to the core foundation. Its quality, its freshness, its burgers, fries, cokes, it's what people go to a Wendy's for. And McDonald's is, you know, trying to do all things to all people.</s>ROMANS: So does McDonald's need to keep its eyes on the fries?</s>PENNEY: To grow again they actually need to shrink. If they take their menu and eliminate those items that aren't selling, then people will gravitate to the items that are more popular.</s>ROMANS: Tell that to Starbucks. After conquering coffee, the Seattle house of high-priced hot liquids is opening tea houses.</s>HOWARD SCHULTZ, CEO, STARBUCKS: The acquisition of juice, the acquisition of food, all of that is enhancing the experience of Starbucks creating different need states for our customers and recognizing that these things are about creating complementary experiences for our coffee customer.</s>TAPPER: But back in burger land, customers would rather keep it simple.</s>PENNEY: McDonald's is the biggest restaurant company on the planet for a reason. It's done one thing well for 50 years, sells burger, fries, and coke.</s>ROMANS: Mess with the menu and you may get grimaced.</s>ROMANS: You have to appeal to a younger audience too, so a lot of work ahead for McDonald's. All right, up next, housing market hot or cold? I'm going to show you the only three numbers that matter in housing. Plus, imagine your home ravaged by hurricane Katrina, you rebuild, and now your house is taken away from you again eight years later.</s>GAYNELLE SORINA: You could digest tragedy from Mother Nature, I can, me personally. But when you have this kind of storm to take place, I can't digest that.</s>ROMANS: These families are not battling a storm, they are battling the banks.