How Trump Plans to Crush Fast-Food Workers

Franchising is usually a racket. Now it will be more of one.

In 2013, McDonald’s generated some ghastly publicity when it came out that the fast-food giant was advising burger flippers to go on food stamps. Why didn’t McDonald’s, a multinational corporation that generates more than $26 billion in annual revenue, simply pay its burger flippers a living wage? The answer in most (but not all) cases was that, appearances to the contrary, most McDonald’s burger flippers don’t work directly for McDonald’s. They work for McDonald’s franchisees—independent, mostly small businesses that contract with McDonald’s Corporation to lease and operate one or more McDonald’s restaurants according to a mind-bogglingly specific set of rules that guarantees every McDonald’s will be indistinguishable from every other McDonald’s.

McDonald’s is not an isolated example. Over the past half-century, corporate America has systematically shed low-wage workers, either by offshoring them, contracting out their work, or designating them as independent contractors. Only rarely today will a large corporation employ someone earning less than $30,000. That’s not because corporations have gotten more generous but because they’ve gotten more wary of assuming responsibility for low-wage workers. Off-loading them spares corporations bad publicity, and in effect allows them to delegate routine labor violations to much smaller companies that can easily liquidate and/or rename themselves if they run into serious legal trouble.

The contractors don’t try very hard to disguise the nature of the service they provide. In a Pulitzer-winning series on migrant child labor for The New York Times, Hannah Dreier reported that Packers Sanitation Services Inc. pitched itself on its website as being able to “take the liability and risk off your facility’s record.” Packers was as good as its word when the Labor Department in February 2023 fined it $1.5 million for assigning migrant children to overnight shifts in 13 meatpacking plants in eight states. Packers took nearly all the heat, while most of the Fortune 500 companies that owned the plants involved—Tyson, Cargill, etc.—went unpunished. Packers then “rebranded” itself as Fortrex and moved its corporate headquarters from Kieler, Wisconsin, to Atlanta. Problem solved.

The Brandeis economist David Weil labeled this phenomenon “the fissured workplace,” in an influential 2014........

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