The 12 Companies Paying Americans the Least
November 21, 2012
by 24/7wallst
The gap between rich and poor is well illustrated by the large multi-billion dollar corporations employing thousands of low-wage workers. With the Great Recession over, not only are many of these companies now hitting record profits, but their executive pay remains spectacularly high. Meanwhile, according to a
report released by the National Employment Law Project, the current federal minimum wage the workers are often paid, is worth 30% less than it was in 1968 in terms of purchasing power.
Two-thirds of low-wage workers - those that are paid less than $10 an hour - are employed by large corporations with at least 100 employees reports NELP. All of the largest companies in low-wage industries, including McDonald?s, Walmart, and Starbucks own hundreds, even thousands, of stores across the country. Based on NELP's July 2012 report, "Big Business, Corporate Profits, and the Minimum Wage," 24/7 Wall St. reviewed the 12 American companies that pay the least.
These employers fall into one of two categories. They are are either large national restaurant chains such as McDonald's, Burger King, and Starbucks, employing tens of thousands of cashiers and cooks. Seven of the 12 companies fall into this category. The others are large national retailers, employing tens of thousands of cashiers and salespeople, like Walmart, Target, and Sears.
In addition to low wages, many of these companies have a history of poor labor relations that extends beyond underpaying their employees. Long hours, unsafe or unpleasant working conditions, limited benefits and restricting access to full-time work, often accompany minimum wage jobs in many of these companies.
[...]
5. Sears
> U.S. workforce: 264,000
> CEO compensation: $9,932,924
> Revenue: $41.57 billion
> Net income: -$3.11 billion
> No. of U.S. stores: 3,510
Many companies like to tout how important their employees are, and Sears Holdings Corp. (
NASDAQ: SHLD) is no different. "Our associates are at the heart of our company and we value teamwork, integrity, and positive energy," says the company's website. Unfortunately for the employees, the operator of Sears and Kmart has struggled in recent years, as evidenced by its recent massive $3.11 billion net loss, despite having revenue of $41.6 billion. In addition, similar to Walmart and Target, Sears and Kmart stores will be open on Thanksgiving for early Black Friday shopping, meaning the employees will have to work this holiday. Sears said it expects holiday hiring to be about the same as a year ago, while Walmart, Toys-R-Us and other retailers increased their seasonal hires.
4. Target
> U.S. workforce: 365,000
> CEO compensation: $19,707,107
> Revenue: $69.87 billion
> Net income: $2.93 billion
> No. of U.S. stores: 1,763
Shortly after competitor Walmart announced that it would open its doors for Black Friday shoppers at 8 p.m. Thursday, Target Corp. (
NYSE: TGT) then said that it would also open its doors Thursday night. Employees were not thrilled by the news. One California-based Target worker drafted a petition calling on Target to "save Thanksgiving" and stick to its Friday opening time. More than 220,000 people have signed the petition. Target insists that it took employees into consideration before making the decision to open early. One executive said, "We had so many team members who wanted to work on Thursday that hundreds of our stores are now keeping lists of volunteers who want to work if shifts open up."
3. McDonald's
> U.S. workforce: 859,978
> CEO compensation: $4,073,748
> Revenue: $27.01 billion
> Net income: $5.50 billion
> No. of U.S. stores: 14,098
McDonald?s (
NYSE: MCD) is the king of fast-food, with revenue greater than any other restaurant operator on this list, and far more locations as well. The company's website offers a long list of awards and recognition for the diversity of its workplace. But even McDonald's is not immune to economic pressures. The company just reported its first monthly drop in global revenue at locations open more than a year, down 1.8% in October. McDonald's USA president, Jan Fields was subsequently ousted to be replaced by Jeff Stratton, who is currently global chief restaurant officer.
2. Yum! Brands
> U.S. workforce: 880,330
> CEO compensation: $20,411,852
> Revenue: $12.63 billion
> Net income: $1.33 billion
> No. of U.S. stores: 16,006
Because Yum! Brands Inc. (
NYSE: YUM), the operator of the Taco Bell, Pizza Hut and KFC chains, is one of the biggest employers of low wage workers, it takes benefits seriously. According to watchdog group Center for Media and Democracy, the fast food giant co-chaired the labor and business regulation subcommittee of the American Legislative Exchange Council, a "corporate-funded bill mill" that encourages laws that benefits its corporate members. At a 2011 meeting, attendees considered model bills designed to override paid sick leave legislation in the states. In 2012, following negative press over ALEC initiatives and the departure of McDonald's, Wendy's, Yum! Brands became one of several large companies to abandon the council.
1. Walmart
> U.S. workforce: 1,400,000
> CEO compensation: $18,131,738
> Revenue: $446.95 billion
> Net income: $15.70 billion
> No. of U.S. stores: 3,868
The labor practices of Wal-Mart Stores Inc. (
NYSE: WMT) have long received negative attention in the press, but that has not affected investors much. WMT's share price rose more than 48% in the past five years. In 2008, Walmart agreed to pay $640 million in settlements of dozens of class-action lawsuits that claimed the company deprived workers of pay for time worked. In October a class action lawsuit was filed in a Chicago federal court alleging that the retailer had violated minimum wage and overtime laws. Walmart workers have begun to strike, and some plan to walk off the job on Black Friday, the busiest shopping day of the year. Walmart has filed an unfair-labor-practice complaint against the United Food and Commercial Workers International Union to prevent this from happening.
