Business

McDonald’s says a California bill that could raise fast food wages ‘hurts everyone’

A top McDonald’s executive on Wednesday said a new California bill that would regulate the fast food industry was “hypocritical” and “inconsiderate”.

The bill, passed by the state Senate on Monday, would create a Fast Food Council to establish health and safety regulations for the fast food industry along with a minimum wage of up to $22 a day. hours – much higher than California’s current minimum wage of $15 ($15.50 starting in 2023).

In a statement, McDonald’s US president Joe Erlinger said he supported raising the minimum wage for fast food employees. But he added that the law “would do the exact opposite.”

Erlinger complained the bill targets some workplaces but not others.

“It imposes higher costs on one type of restaurant, while saving another,” he wrote. “That’s true even if those two restaurants have the same revenue and the same number of employees.”

Brands with fewer than 100 locations nationwide will not be affected by the law. But he fears that an owner of two franchises by a large chain, for example, will have to follow any new rules set by the council.

“It imposes higher costs on one type of restaurant, while saving on another,” Erlinger writes. “That’s true even if those two restaurants have the same revenue and the same number of employees.”

Erlinger added, “This deviant, hypocritical and unscrupulous law hurts everyone.”

However, supporters of the bill say the law would mean improved working conditions in fast food restaurants and increased wages for qualified workers. Additionally, they point to the fact that four out of 10 seats on the Fast Food Council will be reserved for fast food employees and their supporters, allowing frontline workers to have a say in pay and working conditions.

A McDonald’s spokesperson told Luck It is unusual for McDonald’s to directly consider the law. But the company did so because it was an important issue.

In particular, the spokesperson said, the company also chose to raise concerns because proponents of the bill see it as a model that could be implemented in other states.

Matthew Haller, CEO of the International Franchise Association, an industry trade group, says Luck the bill is “unfair” because it applies to no one and it doesn’t help anyone.

“It arbitrarily applies to these small business owners who just happen to be operating under a license agreement with a brand like McDonald’s or Burger King, or Chick-fil-A,” he said, adding, “it is discriminatory based on the business model these franchise owners have chosen to operate in. “

California Governor Gavin Newsom has not said whether he will sign the bill.

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