Posts tagged International Franchise Association
Gavin Newsom signs law raising minimum wage for California fast food workers. Here’s how much
September 28, 2023 // Future increases will be determined by the new nine-member council consisting of two representatives of the industry, two franchisees or restaurant owners, two employees, two advocates for employees and one neutral member of the public, who will serve as chair. It is set to hold its first meeting by March 1. Newsom pushed back against criticism that Californians will pay more for their Starbucks and McDonalds. He cited the The Fight for $15 movement, which raised the minimum wage to $10 per hour in 2016 and and $15 per hour last year.
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.
Senate panel advances Biden Labor nominee Julie Su
April 26, 2023 // “Today’s party-line vote is another reminder that Julie Su is no Marty Walsh, who advanced in a bipartisan 18-4 vote only two years ago,” said Michael Layman, a top lobbyist at the International Franchise Association, in a statement following Wednesday’s vote. The AFL-CIO is fighting back, running ads in Arizona and D.C. backing Su’s efforts to counter wage theft in California. The ads tell viewers that workers are “tired of getting ripped off by big corporations.” The labor federation is also mobilizing its members to lobby senators. “We’re going to defend Julie against these baseless corporate special interests attacks,” AFL-CIO President Liz Shuler told reporters last week. “Every senator, especially those that haven’t yet said that they’ll vote yes, needs to be aware of how much this confirmation means to working people’s lives.”
Biden Doubles Down on California Blundering With Julie Su Nomination
April 17, 2023 // In California, Su was secretary for the Labor and Workforce Development where she oversaw the Employment Development Department with deals involving unemployment insurance claims. She did not shine in this role, as even members of her own party will point out. California Democratic Assemblywoman Cottie Petrie-Norris of Laguna Beach, for instance, said that Su “has not done a good job at running the Employment Development Department and, as a result, has wasted billions of dollars and, more importantly, caused heartache for millions of Californians.” A report for the California Business & Industrial Alliance (CBIA) pointed out that a state auditor had “urged EDD to address its mailing system after millions of Social Security Numbers were included in a mailing sent to wrong addresses.” Unfortunately, “Under Su, the EDD did not prioritize addressing the auditor’s recommendation,” and thus when the COVID shutdowns happened, the system was dysfunctional and trust in her leadership was compromised. Su herself eventually admitted the department was “woefully unprepared” to handle those claims.
Law to Increase Fast-Food Worker Wages Halted by Judge, Pitting Industry Groups Against Unions and State
January 2, 2023 // If the signature drive doesn't qualify for a referendum and the law moves forward, fast food wages could be raised as high as $22 an hour by the end of 2023. California's minimum wage for all workers is set to rise to $15.50 an hour starting Sunday. Chang, the judge, scheduled a hearing on the matter for January 13. She also wrote that restaurant groups have failed to prove they properly served the state with the lawsuit, and she ordered them to do so.
NLRB puts union bull’s-eye on the franchise industry
January 2, 2023 // The National Labor Relations Board has proposed a dramatic overhaul of the franchise business model by reclassifying workers at restaurant or hotel chains as employees of the parent company, a move that would make it easier to unionize across the entire brand. Opponents warn that the change will devastate an industry employing 8.2 million people and contributing roughly 7% to the nation’s overall economic output. “This is going to hurt a lot of people, from someone coming out of the corporate environment looking to be an independent business owner to someone looking to start their career with an entry-level job to consumers who will have to pay $15 for a hamburger,” said Frank Caperino, who teaches franchise management at San Diego State University and owns multiple franchises.
Considering California’s $22 Minimum Wage at the Federal Level
September 20, 2022 // The labor council created by California’s FAST Recovery Act will be responsible for setting employment standards for fast-food workers and have the authority to raise the minimum wage for these employees by 41 percent to $22 per hour. Such a dramatic increase in the minimum wage for fast-food workers would improve pay for those who are able to keep their positions, but would have negative impacts on employers, consumers, and workers who suffer job loss as a result. A national $22 minimum wage for fast-food workers would cause labor costs to rise by up to 35 percent, resulting in increased prices, layoffs, or some combination of both.
FAST Act Advances to Full Senate as Largest Restaurant Operator Flynn Weighs In
August 16, 2022 // IFA President and CEO Matthew Haller. "This bill forces an unnecessary tax on working families across the state during a time of historic inflation. It would unequivocally hurt locally owned and operated restaurants and have sweeping impacts on a huge portion of the restaurant industry." Last December, David Kaufmann of Kaufmann, Gildin & Robbins wrote a fiery piece against the FAST Act in the New York Law Journal. "The state whose recently enacted AB-5 law has in significant part triggered the nationwide supply chain breakdown is now threatening to turn franchising into a socialist endeavor," he wrote.
IDENTIFYING & ADDRESSING TODAY’S LABOR CHALLENGES; A 2022 Study on the Impact of Labor Shortages in Franchising
April 12, 2022 // An inaugural study on the impact of labor shortages on franchised businesses by the International Franchise Association (IFA) and FRANdata reveals the availability of qualified labor is the number one challenge facing small businesses today. The study shows how the franchise business model is uniquely equipped to adapt to today's challenges, highlighting the many ways franchisors are helping their franchisees address the labor shortage.
Labor Relations Radio, Ep 13—Guest: Michael Layman of the International Franchise Association
April 1, 2022 // Michael Layman of the International Franchise Association From the ‘ABC Test’ to ‘Joint Employer,’ the franchise business model is under assault on multiple fronts, with millions of jobs at stake.