Posts tagged franchisees
Congresswoman Chavez-DeRemer is not qualified to be Labor Secretary
November 22, 2024 // Chavez-DeRemer represented her northwestern Oregon district for a single term before narrowly losing her re-election bid this year. Prior to that she was a mayor of a town of 25,000 people for eight years. She has no particular background in union-related activity as a worker, activist, or attorney aside from serving on the Education and the Workforce Committee during her single term in Congress. During that brief period, she did not distinguish herself on labor-related issues. She is, in short, not qualified for the position of Labor Secretary.
COMMENTARY: Kamala’s “PRO Act” Would Ban Right-to-Work and Destroy Independent Contractors Nationwide
July 29, 2024 // The PRO Act is a return on the investment of the hundreds of millions of dollars that Big Labor poured into the Democratic Party’s campaigns to capture the House, Senate, and White House. Employers will be able to force workers into unions as a condition of employment, and union bosses will have access to personal information to bully workers into compliance. Tens of millions of independent contractors would face losing their jobs.
Biden’s veto of joint employer rule CRA a blow to small businesses
May 5, 2024 // Those franchisor corporations will not want to be on the hook for potential violations. They’ll either limit how they franchise and/or assert more control over their franchisees. Either way the entrepreneurs that ran them will lose out. A court blocked the rule from taking effect in March, saying that the NLRB had exceeded its authority. The board is expected to appeal the ruling.
Bay Area fast food chains continue layoffs ahead of minimum wage increase
April 1, 2024 // Bay Area-based Vitality Bowls franchise owner Brian Hom, who owns two Vitality Bowls in San Jose, told the Wall Street Journal that his crew at the two locations had reduced from four to two employees, adding that he anticipated raising prices by 10% to alleviate labor cost. Hom also told the Wall Street Journal that any expansion plans would likely occur outside of California. "We’ve taken significant measures to optimize profitability as increased costs have arisen," a spokesperson for Vitality Bowls told SFGATE. "This includes menu innovations, tech stack advancements, and several other franchisee support programs.
Beware the labor regs of March!
March 11, 2024 // A new rule from the federal government meant to protect workers is set to take effect today, March 11. It will instead leave most workers worse off by limiting their options for employment. Businesses will likely pull back from hiring entirely in many cases because the rules make it too risky. The rulemaking in question is the Labor Department’s (DOL) worker misclassification rule. The stated intent is to prevent situations where employers exploit workers. The rule is extremely vague on when business activities trip the line to exploitation however. DOL essentially leaves it up to federal regulators to decide. The rules won’t change things overnight. Regulators will still have to pursue cases based on them and court fights are sure to follow. But today is the day the mischief will officially start.
US House Votes to Repeal Labor Board Rule on Contract, Franchise Workers
January 16, 2024 // The Republican-led U.S. House of Representatives on Friday voted to repeal a federal labor board rule set to take effect in February that would treat companies as the employers of many contract and franchise workers and require them to bargain with those workers’ unions. The House voted 206-177 to nix the National Labor Relations Board (NLRB) rule, which has been heavily criticized by business groups. The vote sends the proposal to the Senate where Democrats hold a one-seat majority but Senator Joe Manchin, a Democrat from West Virginia, has said he opposes the rule.
Biden vows veto if Congress moves to repeal NLRB rule on contract, franchise workers
January 10, 2024 // The rule replaced a Trump-era regulation requiring companies to have "direct and immediate" control over workers in order to be considered joint employers, which was favored by business groups. "Reversing this rulemaking will prevent workers from exercising their right to bargain for higher wages, better benefits, and safer working conditions," the OMB said on Monday. "Too often, companies deny workers this right by hiding behind subcontractors, staffing agencies, and temporary agencies." The House Committee on Education and the Workforce approved the resolution for a vote last month. The federal Congressional Review Act allows Congress to repeal agency rules within 60 days of their adoption. The resolution only needs the support of a majority in the House and Senate to pass, but would require a two-thirds majority to overcome a Biden veto.
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.
Pizza Hut franchisees lay off more than 1,200 delivery drivers in California as restaurants brace for $20 fast-food wages
December 26, 2023 // Mark Kalinowski, a restaurant-industry analyst, wrote in a note this week that he expected "more harm to come" in various ways as fast-food chains "take action in an attempt to blunt the impact of higher labor costs." Chains such as Chipotle and McDonald's said they planned to pass the costs of higher wages in California to customers by raising menu prices. In 2022, Gov. Gavin Newsom of California signed the FAST Act into law. It called for the minimum wage for fast-food workers to increase to $22 an hour in 2023. But corporate chains such as McDonald's, Chipotle, and Chick-fil-A, as well as franchise advocacy groups, fought the law. A coalition of restaurant-industry organizations said the law could raise costs for fast-food restaurants by $3 billion. They rallied to get a referendum on the ballot.
U.S. labor board delays new unionization rule after business groups sue
November 20, 2023 // The U.S. Chamber of Commerce and other business groups — including the American Hotel and Lodging Association, the International Franchise Association and the National Retail Federation — sued the NLRB in federal court in Texas last week to block the rule. They say the rule upends years of precedent and could make companies liable for workers they don’t employ at workplaces they don’t own. But the NLRB says the current rule makes it too easy for companies to avoid their legal responsibility to bargain with workers.