BusinessWhy McDonald's is unhappy with California's fast food bill

    Why McDonald’s is unhappy with California’s fast food bill

    Joe Erlinger, president of McDonald’s US, publicly criticized a California bill that would give the state more control over pay for fast food workersensuring that it unfairly targets the big chains.

    The businessman’s reaction comes after the state Senate approved a bill that would grant a Council of 10 people the authority to raise the industry minimum wage up to $22 an hour for chains with more than 100 locations nationwide.

    The Council would also have the authority to establish security conditions for the workers of this type of fast food chain.

    Currently, California wage floor is $15.50 per hour.

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    The FAST Act faces strong opposition from the restaurant industry, fearing that in addition to its impact on California, it will also spread to other states.

    Erlinger added that the unfairness would be that a McDonald’s franchisee with two locations would be subject to the new legal provisions, since it is part of a large national chain. But the owner of 20 restaurants that are not part of a chain would be exempt.

    “If raising restaurant workers’ wages and protecting their welfare is essential, and it is, shouldn’t all restaurant workers benefit?” Erlinger wrote.

    Almost 10% of McDonald’s restaurants in the US are located in Californiaaccording to Citi Research.

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    McDonald’s only operates about 5% of its more than 13,000 US locations. Your franchisees own the restbut the chain often lobbies on his behalf.

    Other restaurant companies have also been fighting the bill. State records show that Chipotle Mexican Grill, Chick-fil-A, Yum Brands and Restaurant Brands International are among the chains that have been spending money to pressure California legislators to oppose the legislation.

    The National Restaurant Association, an industry group, also has spent at least $140,000 to fight the bill, according to California records. The organization’s president, Michelle Korsmo, said in a statement that 45% of California restaurant operators report that business conditions are worse today than three months ago.

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    California Governor Gavin Newsom has not indicated whether he will sign or veto the bill.although his Finance Department opposed the initial version of the legislation.

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    Source: La Opinion

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