Is McDonald's exploiting exchange students?
A labor group says some restaurants are abusing a popular program by effectively paying workers less than the minimum wage.
McDonald's (MCD) is known for minimum-wage jobs, but a labor group says some restaurants are going even lower than that.
Students from Asia and Latin America paid as much as $3,000 each to come to the U.S. on a J-1 visa, but didn't exactly get what they thought they had paid for, the National Guestworker Alliance claims.
Instead of the cultural exchange and "good work" they expected, they became "exploited workers at McDonald's restaurants in Pennsylvania," Argentinean exchange student Jorge Rios wrote in a letter to McDonald's CEO Don Thompson. Rather than having a summer filled with enriching cultural experiences, they suffered grease burns and poor housing conditions, the letter notes.
"We could not quit because we knew that if we did, our visas would be cancelled. One manager told us, 'You better remember, all we have to do is make one phone call and we can deport you back to your country at any time,'" Rios wrote. His letter singles out McDonald's franchises near Harrisburg, Pa., where the workers held a strike on Wednesday.
The claims are reminiscent of similar complaints against another Pennsylvania company, Hershey (HSY). In that case, where workers were also championed by the National Guestworker Alliance, the chocolate maker agreed to pay $200,000 in back wages after foreign students claimed they worked under harsh conditions.
A manager at one of the McDonald's restaurants referred questions to McDonald's corporate headquarters, which didn't immediately respond to a request for comments, according to the Huffington Post.
While McDonald's paid the students minimum wage of $7.25 an hour, their employer charged them $300 per month to live in crowded basement apartments, where as "many as eight of us lived in a single basement," Rios wrote. Because of what the labor group calls "exorbitant housing deductions," their pay was brought to below minimum wage.
The J-1 Summer Work Travel Program is designed for college students to travel to the U.S. and "to live and work in the United States during their summer vacation," according to the State Department's website.
While Rios wrote that he expected 40 hours of work a week, he was given as little as four hours. "The employer knew we were desperate for more hours, and he kept us on call to come in with 30 minutes' notice all day and night. I didn't even have time to visit the public library," he wrote.
Rios and the National Guestworkers Alliance are asking that McDonald's refund the students' money, including unpaid overtime and housing overcharges, and offer full-time work to its U.S. workers, whom they claim are "struggling with too few hours." They're also asking McDonald's to reveal how many of its restaurants employ exchange students.
"This is not the America we believed in," Rios wrote. "We believe America is a beautiful country, where everyone can have respect and fair treatment at work."
Do not expect companies like McDonalds to treat you fairly. They participate in this program to get cheap workers. This way also they can keep down the wages paid to Americans.
A great way to prove to other countries that we're "The greatest Country on Earth". Why not just chain these children to the prep tables in the restaurant at night? Why give them 'housing' at all?
....thanks for the article. This news will indeed travel fast around the net and then onto network news. I will be waiting to hear how the corporate kroc will spin the story into a misunderstandings and that they will look into the matter...And like most if not all whistle-blowers’, Jorge Rios is now maligned with a go-back-where-you-came-from resentment from the struggling masses here. The story behind the story is the connection of the `probable’ State Department collusion with corporate deep pockets to establish and set up such a program of indentured servitude under the euphemism of an exchange student program.
Far too common of a practice in the food industry and others, and all over the country. While "McMoms" struggle to get enough hours, and our nations teens suffer high unemployment, and pay is even CUT at times for US workers, the businesses bring in workers that they can squeeze even more from. Don't blame McDonald's- this is a government program and even the employers who treat their imported students well are still not playing fair. Foreign students = NO unemployment liability, NO insurance liability, etc.
Foreign students, illegal aliens, and Annie's housekeeper, and every underemployed American and unemployed teenager (I am the mother of two), we are ALL victims.
On the flipside, - if we were to go to McD's or anywhere else where cheap and quick is the goal, and be charged $10 for our burger, we would scream bloody murder.
EVERYONE ON HERE BLAMES McDONALDS AFTER HEARING ONLY ONE SIDE OF THE STORY.
WHY SHOULD THESE PEOPLE GET FULL TIME WORK WHEN OTHER AMERICAN EMPLOYEES ONLY WORK PART TIME.
IF YOU DO NOT LIKE THE CONDITIONS THEN GO HOME, REAL SIMPLE
The government is paying for imigrants to come from other countries!!!!! That needs cut out of the budget right now.
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[BRIEFING.COM] The S&P 500 and Dow continue to hold slim post-FOMC losses while the Nasdaq has returned to its earlier levels. In addition, the Dollar Index remains near its highs just above 81.10.
Today's FOMC statement was not much different from the last directive released on May 1. However, today's statement indicates inflation has been running below the longer-run objective while long-term inflation expectations remain stable.
The Fed will remain in focus for the ... More
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The central bank leaves its policy unchanged. That means loans to businesses and on mortgages and autos will be cheap. Stocks pull back.