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The Economic Low Road: Low-Wage Workers

Today, UnitedNY released a new report on the low-wage economy of New York City. The report highlights economic inequality, the plight of low-wage workers and shames five of the city’s worst low-wage employers and their millionaire CEO’s: Car Wash Kingpin John Lage and his Lage Mgmt. Corp., AirServ and its CEO Frank Argenbright, Toys “R” Us  and its CEO Gerald Storch, Golden Farm  Supermarket in Brooklyn and its owner Sonny Kim, and ConEdison and its CEO Kevin Burke.

Download the Report Here

Some of the statics in the report are shocking: Four in ten households in New York City are forced to subsist on low-wages and over one-quarter of workers in New York City earn below $25,000 per year. But the report highlights what many of us have long-known: minimum wage is not enough to support a family in NYC. Across the city, families are forced to choose between rent, food, and healthcare. A family making minimum wage is forced to subsist below the federal poverty line. It is immoral for a city like NYC to deny a living wage to its working families.

Join us July 24th for the National Day of Action for Low Wage Workers and support dignity and respect for all workers.

The report exposed the discrepancies of the workers and the CEO’s lifestyles. While CEO’s and company owners are handsomely paid and live in luxury,  its workers are forced to subsist on minimum wage, often with no overtime, healthcare, paid sick days, and in poor working conditions.

Here’s a quick run down of our City’s “Bad Employers”

Lage Mgmt. Corp.

The Company: Lage and his companies are linked to some21 car washes in NYC

The CEO: John Lage Owns homes in Queens and Westchester worth millions

The Workers: Have suffered wage theft, are exposed to hazardous chemicals, often lack meal breaks

 

Air Serv

The Company: Provides passenger services like cabin cleaning and security for airlines with which they contract

The CEO: Frank Argenbright: Worth $300 million, owns $6.8 million home in Sea Island, GA

The Workers: Throughout the industry, contracted passenger service workers typically make $8 per hour, lack health insurance and paid sick leave

 

Toys “R” Us

The Company: Owned by private equity firms including Bain Capital. Had $14 billion in revenue in 2011

The CEO: Gerald Storch: Awarded $7.9 million in total compensation in 2011, lives in 11,000 square foot home he bought for $3.4 million

The Workers: Survey shows wages at less than $10 per hour with some as low as

$8.50; history of being denied vacation pay owed them

 

Golden Farm

The Company: Supermarket in Kensington, Brooklyn

The CEO: Sonny Kim: Sold Bergen County, NJ home for $1.1 million

The Workers: Some allegedly were paid as little as $4.86 per hour, seeking union representation to seek fair wages, sick time, other benefits

 

Con Edison

The Company: Hires cleaning and security contractors that pay wages that keep workers impoverished

The CEO: Kevin Burke: Awarded nearly $11 million in total compensation in 2011 (equivalent to

$5,272 per hour), owns at least 3 homes in New York and Florida

The Workers: Contracted cleaners and security officers make as little as $8 per hour;  their pay and benefits are exempted from prevailing wage laws

 

Workers are standing up for their right and demanding better wages, and  New Yorkers are standing with them.  Starting 11AM and until 12:30 TODAY, we’re flooding twitter with tweets calling out these bad employers

Join the Twitter Rally and make your voice heard!

 

 

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One Response to “The Economic Low Road: Low-Wage Workers”

  1. [...] and a report on the worst companies and executives in New York City produced by the coalition, United NY, Politicker reports: “This report is designed to call attention to these employers and executives [...]