Subject: High Anxiety For The Fast-Food Industry: LRI INK

January 12, 2023

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High Anxiety For The Fast-Food Industry

by Kimberly Ricci

The restaurant industry looks like a very different place than a few short years ago on multiple levels. The first, most immediate issue: minimum wage rises this month in at least 23 states and will impact fast-food workplaces more than most. Secondly, rising union activity could increase closures of restaurants, which were previously thought to be harder to organize for multiple factors including higher turnover.

 

The labor laboratory of California is acutely feeling both struggles, given that the state boosted overall minimum wage to $15.50 on January 1, which has naturally increased food service costs. None of this bodes well in an industry that still struggles to regain a foothold in the ongoing pandemic. Yet that’s not the whole story.

 

A hiccup on the minimum wage frontCalifornia’s Fast Food Accountability and Standards (FAST) Recovery Act, or Assembly Bill 257, had also been scheduled to go into effect January 1. The law structures itself around a Fast Food Council that would directly bargain with employers without union votes and would install a $22 minimum wage for workers of most fast-food chains in the state. The bill currently sits on pause. 

 

The hold, however temporary, went into effect after a judge issued an injunction that will be reevaluated in mid-January. This push-and-pull effect is real, since industry leaders from chains including McDonalds and Chick-fil-A are pushing for a referendum that would put FAST into voters’ hands, way down the line in November 2024.

 

The term “buying time” rarely sounds so apt on both sides, although it remains to be seen whether the injunction would be extended to last that long. 

 

Whatever happens here, a key takeaway exists: whether FAST succeeds or dies, California trends influence the rest of the U.S. As such, copycat legislation is still in the works in multiple states. Meanwhile back in California, the FAST roadblocks prompted workers to strike, which was probably to be expected.

 

After all, Gavin Newsom had signed the bill into law despite industry leaders’ concerns. Their argument: an overnight, dramatic wage boost will cause financial harm that restaurants may not be able to withstand and remain open. This will disproportionately impact franchise owners and likely lead to lost jobs, obviously not to the benefit of members of the SEIU, which propelled the bill in the first place.

 

The ongoing shuttering of restaurants also looms large in the background: Starbucks has continued to permanently close the doors of locations that it has deemed “not profitable” or that are plagued with safety concerns. This has, of course, prompted NLRB accusations that these closings are deliberate and retaliatory, since some of these closures take place where workers filed for union votes. 

 

Yet Starbucks isn’t alone. Casual food restaurants including Chipotle recently shut down locations where workers are organizing. The company argues that this is happening over staffing shortages.

Links

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Union Bailout

Union-Friendly Changes In The Works At U.S. Labor Board

https://bit.ly/3GP7mSw

 

Remarks By Vice President Harris On Infrastructure/More Union Jobs

https://bit.ly/3Zj6HjE

 

The Supreme Court Case That Has Unions On Edge

https://bit.ly/3Cxigtx

 

How The Supreme Court Could Severely Limit Workers’ Right To Strike

https://bit.ly/3GXNFrL

 

Millions Of Workers Signed Noncompete Agreements. The FTC Has Moved To Ban Them.

https://bit.ly/3Xcp8oc

 

More Workers In Pa. Could Change Jobs For Better Pay Under The FTC's proposed Noncompete Ban

https://bit.ly/3WV3yoz

 

Labor Board To Review Case Filed By CVS Worker Who Says She Was Fired For Refusing Union Membership

https://bit.ly/3VXivVW

 

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Union Corruption

 

California Union President Threatened Staff And Stole Records, Union Finds

https://bit.ly/3QlUDKt

 

CA Union President Removed From office By SEIU Local 1000

https://bit.ly/3CtKLs3

 

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Organizing

 

Organized Labor Is Having A Moment, But History Shows That It's A Little More Complicated

https://bit.ly/3Cz3TVF

 

Starbucks Union Organizers Wanted Credit-Card Tipping, Now They're Being Left Out

https://bit.ly/3QpUbLb

 

Starbucks Illegally Terminated Architect Of Union Campaign, According To NLRB Prosecutors 

https://bit.ly/3VT8cSE

 

Lake Michigan Credit Union Branch Workers Near Grand Rapids Vote To Unionize

https://bit.ly/3irJQ4L

 

Chicago Field Museum Workers File For Union Election

https://bit.ly/3iszj9y

 

Amazon Workers’ Union Victory Upheld By U.S. Labor Board Director

https://bit.ly/3GunlnM

 

House GOP Tries To Cancel Congressional Staff Unions

https://bit.ly/3GjJxkg

 

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Healthcare

 

Minnesota Could Bump Up Some Home Care Provider Salaries By 31%

https://bit.ly/3Qo83p0

 

10,000 Nurses In NYC Are Still Without A Contract And Threatening To Strike      

https://bit.ly/3CxDjfI

 

Nurses At Mount Sinai Morningside And West Reach Tentative Agreement As More Than 7,000 Nurses Still Due To Strike

https://bit.ly/3CzPbhk

 

7000 New York Nurses Go On Strike At Two Large Hospitals

https://bit.ly/3ZmcqoO

 

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Aviation

 

Delta Air Lines Workers Are Attempting To Unionize

https://bit.ly/3GudJcu

 

Sun Country Airlines Fleet Employees Form A Union

https://bit.ly/3X6Ou70

 

Southwest's Ex-CEO Turned Airline Into Dallas-Focused ‘Cult’: Union Rep https://bit.ly/3GOWjJ0

 

New Head Of United Airlines Pilot Union Resigns After Online Comments Spark Outcry

https://bit.ly/3Xecrcr

 

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Education

 

Yale Graduate Students Vote To Form Union

https://bit.ly/3ICX1un

 

University Of California Workers Fight To Appeal UAW-Sellout Deal

https://bit.ly/3Qxd5jd

 

UC Strike: Six Things To Know

https://bit.ly/3ZomGg8

 

UC Strike Causes Union Organizing Surge For Academic Workers

https://bit.ly/3Qp4gYE

 

New School Adjuncts Get New Contract, But Strike Took Its Toll

https://bit.ly/3Xamr6s

 

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UAW/Manufacturing

 

Top Labor Exec John Savona Leaves Ford After 33 Years As UAW Contract Negotiations Near

https://bit.ly/3GXSfq9

 

CNH Industrial's Striking Wisconsin Workers To Vote Down Offer: Union

https://bit.ly/3ZnxAmi

 

UAW Workers Reject CNH Off, Extending 8-Month Strike

https://bit.ly/3Xd98Cr

 

CNH Industrial Urges UAW Members To Reconsider Contract Rejection

https://bit.ly/3vRzjms

 

UPS Drivers Ready To Strike As Negotiation Looms

https://bit.ly/3GSyMa6

            

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Media/Tech

 

HarperCollins Workers On Strike Still Have No Response From Company

https://bit.ly/3vQQgO1

 

Union Drive At Activision Blizzard Studio Proletariat Hits A Snag

https://bit.ly/3W4rvZd

About Labor Relations INK

Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


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Contributing editors for this issue: Phillip Wilson, Greg Kittinger, and Kimberly Ricci 


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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