Posts tagged Fast Food
How McDonald’s, Chipotle, Starbucks are preparing for the fast-food worker battles to come in 2024
January 4, 2024 // “Anyone looking at this in the industry, now that emotion has been removed from the negotiation, sees this as the least bad option or worst good option, depending on which side you’re on,” said Matt Haller, president and CEO of the International Franchise Association, a trade group that represents franchisors, franchisees and franchise suppliers. In exchange for concessions, and staring down a very uncertain outcome on the referendum, “We have this very predictable business environment for our members moving forward,” he said.
Fast-food prices hiked after California ups minimum wage
November 13, 2023 // In that January article, I called this “the iron law of California progressivism: Claim that new laws will help the poor. When the actual effect turns out to be catastrophic for the poor, blame capitalism/markets/billionaires/racism, and expand government control of the business. Rinse, repeat, and promote as a national — even global — model for equity. And if Californians have anything to say about it, AB 257 will be coming to you, no matter where you live in the United States.” Indeed, Biden’s forever-acting Secretary of Labor Julie Su has already expressed her unbridled enthusiasm for California’s policy. That’s no surprise, either: Su was California’s secretary of labor, and is closely tied to the union leadership behind a number of execrable labor policies. Among the most notorious is AB 5, the law that banned independent contracting in key industries, including Uber drivers and trucking companies. When AB 257 emerged from the same fetid philosophical swamp, there was Su, now part of the Biden administration, telling the bill’s supporters, “The Department of Labor stands with you. The Biden-Harris Administration stands with you.”
This New Labor Rule Could Be Trouble for McDonald’s
October 5, 2023 // McDonald’s and other franchise companies have made it clear they believe the stakes are high. The “reality is that our business model is under attack,” CEO Chris Kempczinski said of possible joint-employer regulations in a speech at a franchising industry conference in Las Vegas earlier this year, in remarks he also published on LinkedIn. Changes by the NLRB, he said, would transform franchisees “from independent small-business owners to employees of the parent brands.” Heightened joint-employer liability could hurt the franchise model in two main ways, according to the International Franchise Association. One possibility, along the lines of what Kempczinski described, is that a franchisor would exert more control over the franchisees. That undercuts one of franchisors’ big selling points to potential franchisees—that they’re offering a path to running their own business, with all of the freedoms that provides. It could also add compliance costs, and potentially, legal and liability expenses. Those increased costs are also a frequent worry for franchisees, says restaurant consultant John Gordon, principal at Pacific Management Consulting Group. Franchisees typically pay franchisors a percentage of their sales, and their profit comes after those fees and their operating expenses. Franchisees are “justifiably afraid of the franchisor passing costs onto them that weren’t part of the franchise agreement,” he says, and wary of joint-employer liability for that reason.
Opinion: Few Californians Belong, But Unions Scored Big in Legislature this Year
September 26, 2023 // The state’s Unemployment Insurance Fund, or UIF, which is supported by payroll taxes on employers, has about a $15 billion deficit because the state borrowed heavily from the federal government to keep benefit checks flowing during the downturn sparked by Newsom’s orders shutting down much of the state’s economy to battle COVID-19. If the state doesn’t repay the loans, which is likely, the federal government imposes higher payroll taxes on employers to settle the debt. Employers want a veto. Citing the UIF’s crushing debt, Newsom indicated that he’s skeptical.
Commentary: Few California workers belong to unions, but they scored big in Legislature this year
September 20, 2023 // Previously, the Legislature had helped unions gain members by declaring home care and child care workers to be public employees and thus capable of being unionized. In fact, as the Legislature’s session was winding down, it approved a new contract for the latter that included hefty raises. Extending similar status to other service sectors is one possibility. Meanwhile, the bills setting new minimum wages for fast food and health care workers would seem to open the door for similar efforts in other segments of the economy that have large numbers of employees with relatively low salaries.
A FIRST-OF-ITS-KIND UNION RAMPS UP EFFORTS TO SWEEP THE SOUTH
August 30, 2023 // The Union of Southern Service Workers began making headlines last fall after formally christening themselves during a rally in Columbia, South Carolina. This union holds some familiar attributes, given that it began as an offshoot of Raise Up, the Southern leg of the SEIU’s Fight for $15 initiative. Yet this is no ordinary effort by the SEIU, for the USSW purports to not only be “built by and for low-wage workers” but also stretches across many industries. A key distinction: The union frames itself as a cross-sector organization, designed to retain members even if they job-hop between industries, i.e., fast food, retail, hotel, nursing home, warehouses, etc.
California’s on the cusp of transforming America’s fast food industry — again
August 16, 2023 // “Because it’s so many stores, and going store to store would be difficult, the path to unionization here is basically through legislation,” said Brandon Dawkins, SEIU 1021 vice president of organizing. “After we get the council together and force the employer to the table, then the unions — we can come in and really sit down and negotiate with the corporations to, number one, create a union and, number two, address issues like safety and wage theft.” A labor council’s purview extends to workplace conditions like predictable scheduling — a longstanding goal for labor — noted California Labor Federation Executive Officer Lorena Gonzalez, a former state lawmaker who carried an earlier version of the bill when she served in the state Assembly. “If you get joint employer liability, it’s more likely McDonald’s would want to talk about a national agreement or strategy because now they’re on the hook for every labor violation,” Gonzalez said. That tactic has angered restaurant operators who have rallied against the legislation. Marisol Sanchez, a second-generation McDonald’s franchise owner, has appeared in advertising opposing the 2023 bill. Sanchez said she believed SEIU was acting on its own political agenda rather than in response to worker demands.
Commentary: Union myths drive bad public policy on fast-food industry
May 30, 2023 // In California right now, the Service Employees International Union, or SEIU, is using bogus data and false claims to enhance its efforts to organize restaurant workers. Congress needs to pay attention because what happens in California doesn’t stay there for long. Last year, Democratic California Gov. Gavin Newsom signed AB 257, an SEIU-backed scheme to create an unelected council of union appointees to regulate workplace standards for fast-food outlets. The union justified its proposal with a report claiming that these businesses were uniquely bad violators of state labor law.
Focus organizing drives on workers without college degrees, US unions told
May 8, 2023 // n contrast, unionization hasn’t taken off nearly as rapidly at many blue-collar, lower-paid workplaces. No other Chipotle restaurant has unionized since workers in Lansing, Michigan, voted last August to make theirs the nation’s first unionized Chipotle. Only one Amazon warehouse is unionized in the US, just two Apple stores and four Trader Joe’s. Those companies have mounted fierce anti-union counterattacks to slow and they hope stop the spread. Chris Rosell, the Teamsters’ organizing director, says one reason unionization of blue-collar workers often doesn’t catch fire is that it’s frequently easier for anti-union consultants to scare and deter those workers. “Blue-collar workers often aren’t as educated about this union-busting stuff,” he said. “They could be more susceptible to these kinds of tactics.” Rosell said the Teamsters often run elaborate campaigns that seek to inoculate workers from the pressures and propaganda from anti-union consultants. He said the Teamsters’ president, Sean O’Brien, hopes to double the union’s membership and focus organizing on such area trucking, warehouses and sanitation work. Erica Smiley, executive director of Jobs with Justice, a labor rights group, says it’s often harder to unionize blue-collar workers because they tend to have less economic security than educated workers and have greater fear of what will happen to them if they’re retaliated against, perhaps getting fired, for seeking to unionize.
McDonalds President Says It Might Be ‘Impossible’ to Operate in These Key States
February 1, 2023 // While California has led the pack with fast-food worker protection movements, Virginia followed with a similar bill just six months later. This month, it introduced Virginia's House Bill 2478. While not committed to a specific minimum wage, the passed law would require a council of state legislators, elected officials, industry representatives and fast-food workers to get together and regularly oversee worker conditions and compensation.