*from www.money.cnn.com, Mar. 14, 2013 (To view original article click here.)
Take Away #1: McDonalds has cut ties with a Pennsylvania franchisee in a controversy over a temporary work program that employed foreign students.
Key Facts and Figures:
- The company said Thursday that Andy Cheung, the franchisee owner, has agreed to leave the McDonald’s chain of restaurants.
- The move comes after students who came to work at McDonald’s as part of a three-month visitor work program filed a complaint with the State Department.
- The complaint alleged that Cheung exploited them and housed them in poor living conditions.
- About 15 students protested outside of the Harrisburg McDonald’s last week, and about 10 came to New York City Thursday to demonstrate outside Times Square.
Take Away #2: The Students claimed mistreatment, poor living conditions, and exploitive practices.
Key Facts and Figures:
- The students came from several countries, including Peru, Chile and Argentina.
- The students claimed that they were forced to live in an overcrowded basement owned by Cheung.
- The workers also complained they were not given the opportunity to work enough hours at the restaurant.
- “We were living 6 men in a basement, on bunk beds that were clearly made for children and one tiny bathroom,” said Jorge Rios, one of the students from Argentina.
- The student said, “At work, I was only scheduled 25 hours per week, even though they told us we would be working 40 hours.”
- Rios said he was making $7.25 an hour and had to pay $75 rent each week.
Take Away #3: The State Department is investigating the case but would not comment and McDonald’s said it began investigating the case soon after learning of it.
Key Facts and Figures:
- Susan Pittman, a State Department spokeswoman said a situation wherein six people were housed in a basement with one bathroom would be “unacceptable.”
- McDonald’s said it is making sure its franchisees who participate in the program understand “both the letter and spirit” of the State Department requirements.
Take Away #4: The Summer Work Travel Program gives students a J-1 visa and is intended to offer them the opportunity to live and work in the U.S. for a short time.
Key Facts and Figures:
- Last year, 91,600 foreign students participated in the program, according to the State Department.
- The Argentine student Rios first heard of the program at his college campus via a poster he saw from Geovisions.
- Geovisions is a New Hampshire firm accredited by the State Department to sponsor students and place them with employers.
- Rios applied and paid about $3,000 to participate in the program.
- Geovisions’ CEO Kevin Morgan would not comment on the case.
- According to the State Department, there are 46 other sponsors like Geovisions.
- All sponsors are responsible for working out living conditions, hours, and wages with employers.
- Last year, the department cracked down on sponsors, conducting 876 site visits to make sure the employers were looking after the welfare of foreign students.
- Spokeswoman Pittman said the department issues sanctions if a sponsor or an employer doesn’t live up to its expectations.
- In 2012, three sponsors were revoked from the program.
*To view original article from www.money.cnn.com click here.