05/15/14 05/15/14 [captioning made possible by democracy now!] >> from pacifica, this is democracy now! >> net neutrality is really the fundamental openness principle of the internet. whenever you connect to the internet, net neutrality make sure you can connect to everyone else who is on the internet. this has been a tremendous engine for free speech, for economic innovation, for equal opportunity. >> as the federal communications commission prepares to vote on net neutrality, activists

protest outside the fcc, calling for the commission to save the internet. we will host a debate. and fast food workers go on strike for higher wages. >> i feel now it is the time for not only me, but all workers across the nation is stand up and speak out and come out of the shadows and let the public be aware of how we live our day-to-day lives, which is very poorly. >> as fast food ceos make 1200 times as much money as the average fast food worker, we will speak with one worker on strike in the fight for a livable wage. then, to walmart. >> that is what walmart understands and walmart is pretty good at counting its pennies. >> just days after president obama spoke at a walmart, over 18 -- 1800 warehouse workers in california settle a major wage theft lawsuit against walmart and one of its largest contractors. all of that and more coming up.

this is democracy now!, democracynow.org, the war and peace report. i'm amy goodman. nigeria has a currently ruled out talks of a prisoner swap with the boko haram to free the 260 schoolgirls held captive for over a month. a nigerian minister had opened the door to frame the girls in return for releasing the group's prisoners, but on wednesday, british minister mark simons said nigerian president good luck donovan has precluded negotiations. jonathan has precluded negotiations. >> he was not prepared to negotiate with boko haram for the exchange of the objective girls and prisoners. when he also made clear to me is he wanted his government to continue a dialogue to make sure a solution could be found and that security and stability could return to normal a jury for the medium and long-term. >> the news comes as the boko

haram has carried out a new attack or the school in chibok where the girls were seized, killing four nigerian soldiers. a group of villagers has reportedly killed and obtained scores of alleged boko haram fighters in an ambush. the u.s. is flying jets and unpiloted drones over nigeria as part of search efforts for the missing girls. but it has yet to provide that information to the nigerian government because the two sides have yet to work out an intelligence-sharing agreement. the death toll from the mining disaster in western turkey has 282, the worstt ever mining accident in turkish history. the number could rise with hundreds still missing. turkish unions are holding a one-day strike today in protest of what they call lacks government oversight. the international labor organization says turkey has the world's dirt highest rate of worker deaths. the united nations is warning south sudan is on the brink of famine and genocide unless warring factions end their

fighting. thousands have been killed and more than one million people have fled their homes since clashes broke out in december. after a visit to south sudan against week, secretary-general ban ki-moon called for an immediate truce. i was extremely alarmed by what i saw and heard during my brief visit to south sudan. the threat of massive famine is clear and present danger. if the country continues, half of south sudan's 10 million people will be run out of their homes, starving, or dead by the end of this year. to avoid the famine, we are calling for 30 days of tranquility. i have also called for a tribunal to show accountability for the crimes committed by both sides. >> south sudan was due to hold presidential elections next

year, but they've now been postponed as part of reconciliation efforts. an al jazeera journalist on hunger strike against his imprisonment in egypt has reportedly been moved to solitary confinement in a maximum security prison. has been heldmy without charge for close to nine months and on hunger strike since generally 23rd. in a video taken before his transfer to solitary, a frail looking elshamy said he has been denied medical treatment. after i reached 106 days of my hunger strike, to hold the egyptian judiciary [indiscernible] ,f anything ever happens to me i have requested several medical checkups from independent sources, and yet it is not been

provided. >> thousands of fast food workers are staging a one-day strike today in at least 150 cities across the united states. workers are demanding the right to organize and calling for doubling of their wages from the current in which of $7.25 an hour to $15 an hour. organizers with fast food forward say workers in more than 30 countries around the world are also joining the day of action. we will have more on today's fast food strike later in the broadcast. thousands of people have been evacuated in southern california immigration wildfires. a local emergency has been declared in san diego county, which is enduring 100-degree weather and dry winds. anund 10 fires have burned estimated 15,000 acres so far. same-sex marriages will begin in idaho friday after a federal judge denied a state request for an injunction.

thee dale ruled this week idaho ban violates couple's equal protection rights under the 14th amendment. idaho had wanted the ruling on hold pending its appeal. but on wednesday, judge dale said she sees no reason to halt the marriages because she expects the appeal to fail. the idaho ruling was the latest in a series of marriage equality rulings sweeping the country, with seven state bans struck down this year. same-sex marriage bans are now facing court challenges in 31 of the 33 states that enforce them. the arkansas supreme court has overturned a lower court ruling that struck down the state's strict voter id law. the law requires voters to present a photo id before casting a ballot. a state judge had ruled the law violates the arkansas constitution, but the state's highest court now says the judge did not have the authority to make a decision. the measure was enacted last year after the republican-the legislature overrode a veto by democratic governor mike eb. north dakota has appealed a

federal court ruling that overturned the state's antiabortion law, the harshest in the country. the measure banned abortion once a fetal or embryonic heartbeat can be detected, which happens at about six weeks of pregnancy, when many women do not know they are pregnant. it was slated to take effect in august. the louisiana state senate has passed a sweeping anti-choice bill similar to the one that shuttered one third of abortion clinics in texas. the bill would require abortion providers to obtain a mini privileges at a nearby hospital, a step that is often impossible, in part because the providers admit so few patients to hospitals. critics say the louisiana measure would those three of the states five abortion clinics. undocumented mexican immigrant seven deportation after 14 years has taken refuge in an arizona church. daniel ruiz was ordered report for deportation earlier this week. instead, he took sanctuary in a tucson church that once helped

take a central american refugees in the 1980's. he has lived in the u.s. for 14 years, and has a u.s.-born teenage son. he said "i will do anything it takes to stay with my family." his action comes as president obama is expected to unveil revisions to his deportation policy the coming weeks. another mexican citizen is suing immigration and customs enforcement agency for holding him in solitary confinement and mistreating him for five months. fernando figueroa brought has was arrested in september a traffic violation. figaro says ice agents shackle three parts of his body and beat him until he bled profusely from the face. after realizing the severity of his injuries, figaro said agents wrongly placed him on suicide watch, allowing the them to hold him for five months. >> the pentagon says it will try to transfer jill army whistleblower chelsea manning to a civilian prison in order to

grant a request for hormone therapy. manning announced her transition to living as a woman last year, following person dancing for leaking government files to wikileaks. it is the first time the pentagon has granted such a request. in new york, activist have interrupted a speech by the new york state health commissioner to demand medicaid coverage for transgender health care. a 1998 regulation bars transgender people in new york from accessing hormone therapy and other forms of care through medicaid. on wednesday, members of the soviet -- sylvia rivera law project took over the stage of a health conference during a keynote address by the commissioner howard zucker. they displayed a banner with the hashtag trans health care now. one of the members spoke from the stage for several moments. >> right now new york state department of health has a regulation that should specifically -- specifically excludes transgender's from accessing care under medicaid.

join us in demanding that commissioner zucker and the department of health end discrimination against transgender people. >> in a possible victory for thesgender rights, department of health and human services is expected to and a blanket ban on sex were some surgery. "the new york times" has ousted its top editor, the first ever woman to hold the position. executive editor jill abramson was replaced in a surprise move by publisher arthur sulzberger. "the new yorker" reports abramson had recently complained about earning less than her male predecessor, bill keller. she had also voiced concerns about business decisions and advertising interfering with the newsroom. abrahamson has been replaced by whoging editor dean baquet becomes the first african-american to hold the post. he was accused of quashing a story on the involvement of

phone companies in the bush ministrations domestic servants program while working at "the los angeles times." he received complaints from top u.s. intelligence officials at the time, but says that played no role in his decision. the french photojournalist camille lepage has died while covering the conflict in central african republic. her body was found murdered after french troops stopped the vehicle driven by christian militants. friends and colleagues say camille lepage was dedicated to documenting africa's overlooked conflicts. she was 26 years old. and those are some of the headlines. this is democracy now!, democracynow.org, the war and peace report. i'm amy goodman. we turn now to the future of the internet. the federal communications commission or fcc is scheduled to vote today on new rules that may effectively abandon net neutrality, the concept of a free and open internet. the fcc announced plans last month to let internet providers charge media companies extra fees to receive preferential

treatment, such as faster speeds for their products and content. under previous regulations struck down earlier this year, providers were forced to provide all content at equal speeds. just steps from the fcc, demonstrators have set up tents and banners reading "save the internet." protesters with the occupy the fcc encampment are calling for federal regulators to reclassify broadband service as a public utility, which would allow for the requirement of net neutrality rules. since last friday, three of the fcc's five members have talked to the protesters. tom wheeler stopped by and reiterated his commitment to an open internet. listen closely because there's a lot of background noise. we are four and i am for open internet, a robust internet, a fast internet and there is only one internet. not this internet for these folks and this internet for these folks. >> that was fcc chair tom wheeler speaking to protesters

at the occupy fcc encampment. a letter was sent urging wheeler you see agencies authority to protect the open internet. meanwhile, the ceos of 28 u.s. broadband providers and trade groups also wrote a letter to the fcc asking it not to classify broadband as a utility. the ceos of at&t, comcast, verizon communications, and time warner cable were among the executives who argued that regulating broadband would " impose great costs, allowing unprecedented government micromanagement of all aspects of the internet economy." on more we host a debate now net neutrality. here in new york, we're joined by timothy karr, the senior director of strategy at free press, a media reform organization. joining us from hong kong is ,oshua steimle, the ceo of mwi an online marketing firm. he's a picture bitter to forbes who just wrote a piece called, "am i the only techie against net neutrality?" timothy karr and joshua steimle,

welcome to democracy now! timothy karr, can you lay out what is at stake now before the fcc today? >> the fcc is in the process of making a new ruling to protect net neutrality. there have been a number of efforts in the past that were thrown out by the courts. the most recent one was in january. the fcc under its new chairman tom wheeler, has pledged to protect the open internet. according to reports that came out in the media about three weeks ago, he is actually proposing what is called a pay for part is a shim is the opposite of net neutrality. , whichfor prioritization is the opposite of net neutrality. what is happening today is the fcc is having a meeting to decide whether to put this proposal forward. it is likely that will happen today. then there will be a process over several months where the public can comment and let them

know, let the fcc no what they think about german wheelers -- >> why is it called net neutrality? it is the way the internet was supposed to work, this idea when you go online, doesn't matter whoever you are, you can connect to anyone else who was on the network. you simply have to pay whatever your monthly rate is your internet service provider and they get out of your way. underlying principle of openness is what has made internet such a great engine for free speech and diversity economic innovation. >> joshua steimle, why are you against net neutrality? >> to clarify my position, i'm not against net neutrality as a principal, i'm against net neutrality as legislation. i primary motivation there is i am against further government intrusion on the internet. so i see the u.s. government is not thing that trustworthy steward to take care of the internet and ensure an open

internet. i don't like the telecoms. i'm definitely not on their side. but i see the telecoms as bad and he was government as worse, and i don't see how we add up that plus worse and end up with better. >> your response? >> this is about protecting the rights of telecom companies or protecting the rights of u.s. government, but protecting the rights of internet users. we have had a long tradition of regulation of internet providers. there is a misunderstanding here that net neutrality is a regulation of the internet. like service providers comcast, time warner cable, verizon and at&t. there is a long history in communications law of regulations that protect the public interest. these are companies when they come into your community, have to lay there lines, dig ditches or lay lines or telephone calls. they strike franchise agreements with cities. that is the basic regulation of

internet service providers. net neutrality prevents them from blocking our content, censoring our speech, and allows us to connect anyone else online without this kind of discrimination. >> your response to that, joshua steimle? >> my concern is that if we have net neutrality legislation, we can't trust the telecoms to police themselves. they're not going to say, oh, yes, we are handling the traffic the way it is supposed to be handled. so the government will step in and say, we need to ensure that this traffic is being handled correctly edge means we need to install hardware and software to verify this traffic is being handled correctly. this is the same organization that one year ago we discovered has been spying on american citizens. this is the same organization that executes u.s. citizens in violation of their fifth amendment rights. this is the same organization that has proven it is fairly confident of providing any sort

of product or service. we have bridges falling down, issues with every industry that the government touches. i don't trust that entity, that organization, to provide oversight for the internet war for these internet telecoms. >> one of the things here in the united states is that we actually do have a first amendment and the second and fourth the memo that protects our right to free speech. those are government rules, rules to prohibit government from censoring free speech and invading our privacy. the problem that we are seeing these days is that a lot of free speech is taking place via private platforms. more than one billion people on facebook, people using twitter, people using social media to speak. these are private entities that can censor free speech at will, read the fine print.

we have a law that protects free speech. the government does have a role in making sure that free speech is protected. it is more important for us to have a regulatory structure that prohibits these private entities from blocking free speech than it is to just let them decide what they're going to do with our communications at will. >> joshua steimle? there is just a little delay for folks to understand. >> when it comes down to it, tim and i and everyone else, we agree on the ends we want to accomplish. we all want a more open and free internet. we want cheap, fast internet. that is what everybody wants. i want that, too. it is the means to get there. i see the government as essentially the enemy of the open internet. i don't trust this organization.

i don't trust the telecoms, either, but i see the telecoms as being limited by the marketplace, by individuals. the government doesn't have those limitations. it has the force of law. we have seen the government is content to violate our freedoms and our constitutional rights. so when it comes to who is the best steward over providing this cheap, fast internet, i look at the government as being the least trustworthy steward their. i don't trust the telecoms, either, but i have great faith in entrepreneurs and technology. we have seen innovation over the past 10 years that has been directed lists -- miraculous. 10 years from now, comcast will aol.y be a relevant as is i'm not worried about internet getting slower or being restricted, i'm more worried about the government intrusions. >> timothy karr? >> i agree, this is about

protecting free speech on the internet. and it is about the government serving the role to protect internet users and not protect its own interest. so what we are looking at at the fcc is a very simple regulatory solution, which is for them to treat internet service providers -- not the internet -- as common carrier. as common carriers, they simply have to let our communications flow freely over their pipes as a neutral conduit. so what we are asking for in asking the fcc to reclassify them as common carriers, is not the idea that will become a public utility or the government is going to take over the internet -- this is still very much a free market environment in which the internet service providers are profiting handsomely and providing us the connection. we just ask for a baseline rule that prevents them after they provide us with a connection from blocking our communications in any way. >> i want to turn to michael

powell, the former chair the federal communications commission who is now ceo of the national cable and telecommunications association. late last month, powell spoke of the cable show 2014. he said net neutrality could prove disastrous for the future of the internet. he argued that true public utility suffer from chronic underinvestment -- and that the internet thrived precisely because it is not treated as a utility. >> because the internet is not regulated as a public utility company grows and thrives in a watered by private capital and a light regulatory touch. it does not depend on the political process for its growth or the extended drought of public funding. this is why broadband is the fastest deploying technology in world history, reaching nearly every citizen in our expansive country. driving speeds have increased 1500% in the last decade.

america's internet providers $1.3 chilean since 1996 to make america's internet world class. % of thetry has 4 world's population, but attracts 25% of all global investment. regulators overseas have begun to envy this level of investment . >> so that is the former fcc chair, now represents major industry, michael powell, son of colin powell. your response to what he had to say? you certainly had run-ins with him as head of the fcc. those under michael powell that the broadband business was listed as an information service a utility. not as >> the irony is now is the chief lobbyist for the cable industry that he was once in place to regulate. in 2002 you made the decision to classify them not as telecommunication services,

which are held to a common carrier role, but information services. we are trying to fix those mistakes. that is in the central challenge at the fcc in many respects of the last 12 years. so when he says that to reclassify broadband carriers as common carriers would basically close up shop for a lot of these businesses, he is ignoring the immense profit margins that they record. and the gross profit margins for internet service providers are in the order of 80%. in addition, we have looked at their claim that reclassification calling them common carriers would dry up investment and build out of networks and more people can get connected. we actually went back to the period when they were common carriers and looked at their capital investment as a percentage of their overall revenues. and it was much larger than it is today, so there's no evidence in data that would suggest that

treating broadband internet service providers as common carriers would affect the investment climate in any substantial way. >> i want to get joshua steimle 's, and but first i want him to chairespond to the fcc tom wheeler who spoke at the cable show 2014 were michael powell spoke, cable's largest district conference and trade show. he denied claims the fcc is abandoning net neutrality. >> those who oppose the idea of net neutrality might feel like a celebration is in order. reports that we are getting the the internet -- gutting open internet are incorrect. i am here to say to you, wait a minute, for the way the party -- put away the party hats.

the rules will be tough, enforceable, and with the concurrence of my colleagues, will be in effect with dispatch. >> that is fcc chair today tom wheeler i'm a who actually was head of the ncta, the largest lobbying arm of the industry earlier. he and michael powell, former fcc chair, have just traded places. joshua steimle, your response to both? problemis exactly the that i see here. we have lobbyist who are now running the fcc and former fcc chairman who is now a lobbyist. and we are asking this organization to police the telecom industry. how can we trust any regulation that comes out of this organization to be impartial or to be beneficial for consumers, rather than the industry? there's a long history in the

united states of large companies collaborating with politicians in government to write regulations that favor large companies, and hold back smaller companies. net neutrality is legislation might hold back and might restrict these larger companies and control them in a way, but ultimately, it will hurt smaller providers more. smaller providers are less able to deal with these regulations, so it prevents copetitioner. when you prevent competition, you don't get the increases in price and quality. that is another fear i have about the impact of not just net neutrality, but other legislation that might follow. >> joshua steimle, are you concerned that in fact what will happen is less competition if these large companies are able to offer this faster lane, it will wipe out innovative, smaller, starting your garage companies? what i'm concerned about is any time the government gets in

and regulate an industry, it makes it harder for small entrepreneurs to do business in the enter street. regardless of what the relation is, it provides red tape and keeps the smaller ones out. it becomes a favor or handout to the larger industry. i see net neutrality legislation as more red tape. i see it as a handout to the larger companies, even though they are fighting it. the small, it hurts competitors worse than it hurts them. therefore, it is a benefit for them. they win either way. >> timothy karr? >> i have trouble understanding the argument because what net neutrality is is about protecting the level playing field of the internet that allows small entrepreneurs and startups to engage in the space. when you have a pay for prioritization scheme like this scheme that chairman wheeler is proposing, that locks in the power of the larger companies. it lets them dictate who wins and who loses on the internet, whereas startups like google was

less than 10 years ago, cannot get into that space because they simply cannot afford the payola scheme being forced upon them by isp's. >> i want to play clip of what president obama said about net neutrality when he was running for president will stop this was back in 2007. a backseat to no one in my commitment to net neutrality. once providers start to privilege some applications or websites over others, than the smaller voices get squeezed out and we all lose. and the internet is perhaps the most open network in history, and we have to keep it that way. >> so that was president obama before he was president. timothy karr, if you could respond to his record here -- of course, he appointed tom wheeler , who was the cable industry lobbyist. >> that was the first of many statements. since becoming president, he has

reiterated his support for net neutrality, and even as tom wheeler came into office, he stated that, indeed, his appointee will share his views in protecting net neutrality. what we are facing today is a chairman who was issued a proposal that does the opposite of what president obama has proposed. we're in a situation where the fcc is taking action that is contrary to the president. appointed, the president can't really influence what goes on at the fcc. so what he is doing right now is actually acting against the will of president obama. we are hopeful at free press that the president will make another statement to make clear that he does support net neutrality and not the scheme that chairman squealer is proposing at the moment. >> i went down to the fcc, the people's firewall yesterday afternoon and talk to some of

the folks who were there holding their signs to preserve network neutrality. -- a were pleased that were pleased that tom wheeler had come out to talk to them. explain what the process is that is going to happen today. there's a hope this would be delayed, this boat? >> there is a hope it will be delayed and there are a number of commissioners who have suggested that wheeler t delay the vote. there will be a rally at 9:00 a.m. this morning outside the fcc and i encourage people to go down and participate. the meetings begin at 10:30. the five commissioners of the fcc will vote on this proposal that chairman popular is putting forward. after that, there will be a process whereby the public and get more involved. 39 people have already written to the fcc, already engaged in this issue since january so there is a very large public clamoring to do something about this. after today's meeting, there

will be a process that could take several months for public comments that we hope will help guide the fcc's ultimate decision. >> i want to thank you both for being with us. timothy karr of free press and joshua steimle recently wrote a piece headlined, "am i the only techie against net neutrality?" joshua steimle was speaking to us from hong kong and tim here in new york. we will cover what happens at the protest today. it was tricky, the people's firewall, because the fcc i think it is at main and 12, when we got there, it is right next to the highway and have all of their tents --they have been camped outside the fcc commissioners, it was very hard for them to avoid talking to the protesters. when we come back, we will talk about the fast to protest today and president obama going to walmart to speak. stay with us. ♪ [music break]

>> this is democracy now!, democracynow.org, the war and peace report. i'm amy goodman. thousands of fast food workers have begun a one-day strike today in at least 150 cities. organizers with fast food forward say workers from 80 cities in more than 30 countries around the world will also join the day of action. in the u.s., workers in st. louis and kansas city, milwaukee, oakland, detroit, chicago, los angeles, and new york city will demand the right to organize and call for doubling of their wages from the current minimum wage of $7.25 an hour to $15 an hour. this was the scene in new york early this morning outside a mcdonald's across the street from the empire state building. >> we are the workers! >> i am the organizing director of fast food forward.

we are here in midtown in new york city. hundreds ofreds and new york fast food workers on strike today. hundreds and hundreds of community out here supporting them. march down 33rd. we turned on fifth avenue. conflict withme the police here at this mcdonald's because the gm of the store apparently was here getting the police because he did not want 500, 6 hundred person crowd to take over his store like we are known to do here in new york city. when we tried to get into mcdonald's, the crowd was stopped from going in. luckily, we had a crowd that had gone in earlier so we got a banner that we threw up and hung down inside the mcdonald's just a moved our message around. $15le sticking together, and the union for everyone across the country. >> good morning!

we are here this morning with members of the clergy. with fastsolidarity food workers. $15 and a union. inequality.top this today, we are sending a , thingsessage to albany have got to change. citysay the new york public advocates -- >> fast food is the fastest growing job in the united

states. .t is also the lowest paid and it is no incident that the lowest paying jobs in new york food are those in fast predominantly held by women of color. fast food workers on average $10,000 andtween $18,000. makes --f mcdonald's are you ready? an hour. >> i work at wendy's.

yesterday night i walked out because i think we deserve $15 and a union. the union is there to protect us from the injustices that happened in the workplace. for example, sometimes they expect us to work for free. out, but ifo clock there's work still to be done, they will try to force us to work out and still do -- clock out and still do the work. some people let them overpower them like that, but i'm on strike today for reasons like that. >> that is video from this morning outside a mcdonald's here in new york across the street from the empire state building. workers say they're planning another protest a mcdonald's annual shareholders meeting a week from today. for more we're joined by two guests. in new york, catherine ruetschlin author of the report, "fast food failure: how ceo-to-worker pay disparity undermines the industry and the overall economy." joins us fromise

pt, kansas city public television. he has worked for burger king for nine years and plans to go on strike today. he is a member of the standup kansas city campaign. we last spoke with him in august, as the strikes were just beginning here in the u.s. we welcome you both to democracy now! terrance, you have worked at burger king for nine years. how much do you make an hour, if you don't mind me asking? >> divergent fast food for 17 years and a burger king for nine years and i make $9.40 an hour at burger king. >> i'm sorry, i did not catch what you said. can you say that again? >> i have been working fast food for 17 years and burger king i've worked for the past nine years and i make $9.40 an hour working there. >> and why are you going on strike today? >> i'm going on strike for my

family. i raced through the girls here in kansas city. their future do not look anything like the past. we have struggled with homelessness, and basic utilities -- gas, rent, the lights. and that is while working every day. the working poor is what we are. >> are you concerned about retaliation if you go out today? what has burger king said, presumably, because this is being organized all over the country, urging and mcdonald's no workers will be walking out. >> i first spoke to you in august. that was my first right and this is number four for me. so we know the federal laws provide us our protection when we come together as workers and fornd corporations we work to pay us a living wage and give us the right to form a union. with that knowledge of knowing the federal government protects our right to organize and go on strike, it is a huge relief for

fast food workers. >> terrance, how many hours a week do you work at burger king? >> between 35 and 40 hours a week. >> and your take-home pay? well, i make $9.40 an hour, so it is like 35 to 40 hours a week. after taxes, maybe $400 every two weeks. and that is working double sometimes, going in in the morning and working at night. just not bringing in enough. and we know these countries make billions in profit. they can afford to pay us better and do better by us. and give us a voice on the job. that is what we are demanding. >> catherine ruetschlin, you have been studying this, the issue of what these fast food companies can afford. your report is, "fast food failure: how ceo-to-worker pay disparity undermines the industry and the overall economy." betweenthe disparity the ceo say a burger king and the workers or mcdonald's? >> when i started the study, i did not know fast food was going

to be such an extreme outlier in terms of pay disparity. the study rose in the context that terrance another workers like him, created a growing awareness that inequality is undermining the economy is several levels. when i dug into the data, what i found was that fast food is a catalyst with any quality that outstrips all of the sectors of the economy. the ceo of the fast food company in 2012 earned 1200 times with the typical worker earned. >> 1200 times. cox 1200 times. it is with a fairly generous assumption that workers in fast food are receiving benefits and worker full-time schedule, which in many cases is not true. >> how does that affect the industry and the economy as a whole? you say it hurts it. >> there's a macrolevel store that has just become part of the conversation with organizations like the imf and the world economic forum in davos 22

inequality as a threat at the macro level because it generates instability in the economy and undermines growth. at the macro -- microlevel, firms are starting to wake up to the fact it undermines their bottom lines as well. in march, mcdonald's filed with the sec and listed income inequality as one of the primary risks facing their own returns over the coming years. not just because workers are striking cover of because they're having a hard time satisfying their customers because they have underinvested in the frontline services that really build the brand and provide revenue. >> how do you respond to the company say, all right, if they increase the workers rages but the consumers have to be willing to pay more for the burgers? >> firms have a lot of ways they can pay for a raise. they don't necessarily have to pass the cost on to customers. they could do that, but they could also use some of the ways they're redirecting their profits right now. firms like donald spend billions of dollars a year buying back their own shares of company stock on the market in order to

consolidate ownership and buffed up earnings per share. that is a short-term the interest of the firms. if that a longer-term perspective, they would see that rather than investing in the share price, if they were investing in the labor force, they would generate returns, higher productivity, loyal workers with better knowledge of the company processes, lower turnover rates, lower cost associated with job search and would receive benefits from that investment that would pay off in the long run. >> and the issue of how these companies are subsidized, government-subsidized? >> a study came out recently that shows fast food employers like mcdonald's, subway, yumm! brands, these are some of the highest ranking employers in terms of working poor. so if you look into who is receiving health care benefits

for their families and wage subsidies from the state agencies, the highest-ranking firms are walmart and fast food. so it is the taxpayers were actually paying for the ability for these firms to maintain a labor force at all. >> terrance, how does it feel to learn that the ceo makes something like 1200 times more than what you make? >> well, i know workers like myself and my coworkers across the city, we go to work every day and we are the driving force behind his billions in profit he brings in. he is buying new yachts and boats and cars and i just want to put my kids through college. just to see the disparity that i am making $9.50 an hour and he makes over $9,000, and just to get that out to the public and

that information to be known, it is eye-opening. it calls for change. action you'rehe going to engage in today in kansas city, what exactly are you going to do? >> like i said earlier, this is my fourth time. i will band together with the majority of coworkers at my store and hundreds of workers from around the city, and we will go to different parts of the city and do chants, hold signs, give speak out and try to injure some stores like i heard them say in new york earlier -- and enter some stores like i heard them say in new york earlier. it is just to get the message out to the public and to our bosses and the company that we are not afraid. we're going to stand together in solidarity and we demand better. we are not asking for minimum wage increase. it is for billion dollar corporations that have the money to pay as better and give us the right to have a union in this industry. >> terrance wise, thank you for

being with us, burger king worker on strike today from a part of standup kansas city, speaking to us from kansas city public television will stop catherine ruetschlin, one more thing, not only the issue of the pay ratio of worker the ceo 1200 to one, but the fast food ceos earnings or dribbling compared to -- quadruple in compared to what with the workers? >> we have seen at these firms that have benefited from economic growth overall, the ceos and top executives have been able to capture all of those gains. while the fast food ceo pay grew by 470% since 2000, worker earnings only grew by 0.3%. that means their earnings aren't even keeping up with the basic cost-of-living. they're actually losing ground in terms of standard of living year after year. >> catherine ruetschlin, i would like you to stay with us because next after break we're going to talk about walmart.

president obama spoke at walmart recently. right afterwards, 1800 warehouse workers in california settled a major wage theft lawsuit against walmart in one of its largest contractors. this is democracy now! and we will be back in a moment. ♪ [music break]

>> this is democracy now!, democracynow.org, the war and peace report. i'm amy goodman. today's show looking at walmart, the nation's largest retailer. >> we know the shift to clean energy won't happen overnight. we have to make some tough choices along the way. and we know if we do, it is going to save us ultimately money and create jobs over the long term. that is what walmart understands and walmart is pretty good at counting its pennies. >> that was president obama at walmart in mountain view, california on friday, giving a speech promoting solar power and energy efficiency. outside, workers and union

activist protester the president's visit to walmart. on wednesday, workers at three california warehouses used by walmart agreed to settle a wage theft lawsuit by accepting a $21 million settlement. the workers had sued walmart and schneider logistics, an outside company that owned and ran the warehouses. schneider will pay the entire settlement. the lawsuit alleged that workers were often paid less than minimum wage, with no required breaks for overtime compensation. in january, federal judge ruled walmart would have to face trial as a potential joint employer, the first time a retailer would have had to stand trial for the actions of its warehouse contractors. walmart declined to join us on the program. schneider just extend not respond to computed -- repeated requests for comment. or more we're joined by attorney theresa traber who represented the warehouse workers. still with us, catherine ruetschlin, co-author of the report, "a higher wage is possible: how walmart can invest in its workforce without costing customers a dime."

thissa traber, explain precedent-setting lawsuit against walmart and one of its contractors. >> good morning. this is an industry where retail giants like walmart and huge logistic companies like schneider use middlemen to hire workers in their warehouses to evade wage and hour laws. in our lawsuit, our workers were directly employed by subcontractors who contracted with schneider logistics who contracted with walmart to run its warehouses. all of the goods here they go through these three warehouses are walmart goods. -- ports from the call

of los angeles and long beach, coming containers to the warehouses. they are unloaded by our plaintiff workers. they are loaded by our plaintiff workers onto trucks to go to regional stores and regional distribution centers of walmart will sto. >> i want to turn to the words of one of the warehouse workers. >> in the inland empire were unemployment is high, a job in the warehouse is one of the most common jobs. all day we moved walmart merchandise, but we are temporary workers. we get paid minimum wage with no health benefits. we have no job security and we're treated with very little respect. i help walmart profit, but i can barely pay my bills. >> that is raymond castillo. theresa traber, what this has

led to, this landmark settlement contractort with the has to pay -- though it looks like it is the contractor that is paying the full $21 million. >> under the settlement, which is a settlement between schneider, walmart, and the workers, schneider is ostensibly paying the entire $21 million to the workers. however, we don't know whether or not walmart is can to bidding to the settlement behind the scenes -- contribute into the settlement be on the scenes. we know the negotiated settlement settled all the claims not only against schneider, but also against walmart and that both of those defendants in the case reserve their right to go after the subcontractors for any money they paid in the context of settling this case. >> what would it look like if walmart were in the dock? >> what do you mean? >> i mean, if this had not been

settled? >> walmart and schneider both filed major motions in the fall of 2013, trying to get the court to dismiss them from the lawsuit, claiming they could not be held as the employers of the subcontractors workers. and there was substantial evidence that was put in front of the court about the level of control that walmart and schneider exercised over these workers day-to-day lives. in january of this year, the judge in the case christina snyder ruled both schneider and walmart had to stand trial to determine whether or not they could be held liable for all of the wage theft, all of the wage an hour violations because of their joint employment status. >> do you think in fact, theresa traber, that walmart is not paying? >> i can't really speculate

about that. i do know that it is a three-corner deal, that it is not a deal just between the workers and schneider, that walmart was a participant and a signatory on the settlement, the memorandum of understanding. they have to answer for that. from our point of view, the workers are going to be or are going to receive an excellent settlement, full compensation for their claim. and we are very pleased with the settlement, whoever pays it. >> i want to go to catherine ruetschlin. the six walmart heirs are worth as much as the bottom 41% of american households put together . walmart ceo william simon gets a $1.5 million bonus for missing expectations while a worker gets zero. >> i think the settlement coming on the heels of obama's visit really highlights the problems associated with this narrow

conception of sustainability as primarily a problem of physical capital allocation. when in fact, your human capital allocation, how you treat your workforce not just in terms of pay but also in terms of scheduling and benefits and health care and things like that, really has an impact on the firm. for walmart, they depend on this level of price competition all along the supply chain, but want to keep at arms length distance from the actual outcomes. this is not that different from wage theft lawsuits going on across the u.s. where firms have been implicated as joint employers as well resulting in lawbreaking and behavior, in fact. with the firms are not acknowledging is that they're actually opening themselves up to a series of material risks associated with these practices. riga risks, but also damage to the brain and things like that. compensating your

workers at the bottom has a payoff for the firm and that is a part of having a sustainable economy sustainable investment is really kind of blown wide open in this case. >> what you think is most important to understand about walmart? >> oh, wow. i think the most important thing to understand about walmart is it is the biggest employer in the u.s. and its decisions spillover into the decisions made by firms all across the country and the world. their pay practices, scheduling practices -- these aren't issues just for walmart workers and their families, but the entire labor force and how we move our economy forward. >> thanks for being with us, catherine ruetschlin, we will have a link your report and theresa traber, leading to her lawyer who represented labor workers in this historic settlement. settlement. we

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