THANKSGIVING SPECIAL: Top Ten Companies Paying Workers The Least
While the top two are certainly no surprise to anyone... The rest of the list should raise eyebrows and make shoppers think twice during this Thanksgiving buying extravaganza...
5. Yum! Brands
> U.S. workforce: 694,712 (est.)
> CEO compensation: $14.2 million
> Revenue: $13.6 billion
> Net income: $1.6 billion
> No. of U.S. stores: 18,069
Yum! Brands Inc. (NYSE: YUM) CEO David Novak received more than $14 million worth of total compensation in the past fiscal year. The company’s revenue rose from $11.3 billion to $13.6 billion. Hourly wages for workers at its KFC, Pizza Hut and Taco Bell chains, however, are still often less than $8 an hour. Yum! Brands has continued to expand, opening more than five new restaurants a day outside the United States in 2012. However many American workers have expressed frustration that the company’s success has not led to an increase in their pay. This summer, fast-food workers at Yum! Brands and other fast-food chains staged protests across the country, demanding higher wages.
> U.S. workforce: 343,000
> CEO compensation: $11.1 million
> Revenue: $96.8 billion
> Net income: $1.5 billion
> No. of U.S. stores: 2,418
The Kroger Co. (NYSE: KR) employs 343,000 workers in 2,418 stores across the country. The company operates stores under several names, including Kroger, City Market, Dillons and others. A majority of Kroger’s employees are covered by collective bargaining agreements between the company and different unions. In the past few months, Kroger has agreed to terms with unions covering thousands of workers in Virginia and Texas. Kroger’s net profit was $1.5 billion at the end of the most recent fiscal year.
> U.S. workforce: 361,000
> CEO compensation: $20.6 million
> Revenue: $73.3 billion
> Net income: $3.0 billion
> No. of U.S. stores: 1,778
Target Corp. (NYSE: TGT) had 361,000 employees working at 1,778 stores in the United States at the end of 2012. The average listed salary on Glassdoor.com for a cashier or an employee on the Target sales floor is less than $9 an hour. In response to Target opening on Thursday, in advance of Black Friday, Target workers drafted a petition last year to “save Thanksgiving.” More than 300,000 people signed the petition. This year, Target stores will open on Thanksgiving Day at 8 p.m. That is an hour earlier than last year.
> U.S. workforce: 739,055 (est.)
> CEO compensation: $13.8 million
> Revenue: $27.6 billion
> Net income: $5.5 billion
> No. of U.S. stores: 14,157
In the restaurant industry, the hourly median wage was just over $9.00 as of 2012. However, many McDonald’s Corp. (NYSE: MCD) employees are paid far less, with cashiers and crew members often earning only the minimum wage. In October, several McDonald’s employees were arrested for protesting their wages at the Union League Club of Chicago, where McDonald’s President Jeff Stratton was giving a speech. Between 2008 and 2012, sales and profit margins at McDonald’s have increased. Despite the company’s growth, employees are still hurting. All but admitting the low wages, McDonald’s encourages employees to enroll in food stamps and welfare programs.
> U.S. workforce: 1.4 million
> CEO compensation: $20.7 million
> Revenue: $469 billion
> Net income: $17.0 billion
> No. of U.S. stores: 4,759
There are 1.4 million Wal-Mart Stores Inc. (NYSE: WMT) associates working at the company’s 4,759 U.S. stores. Walmart recently announced it would launch Black Friday sales at 6 p.m. on Thanksgiving Day. Critics of Walmart see this as adding insult to injury — forcing retail workers who already earn low wages to cut holidays short. Criticisms like these have been part of an onslaught of claims that Walmart underpays its workers. Walmart disagrees, saying that “for tens of thousands of people every year, a job at Walmart opens the door to a better life.” According to the company, a full-time hourly wage is $12.83. Some argue that the company’s number is inflated, however, reflecting the salaries of higher-paid employees. Hourly wages for sales associates are less than $9.00, according to Glassdoor.com. Walmart’s net income rose to $17 billion last year.