McDonalds can no longer hide behind legalese over employee conditions

#1

I speak for all Americans when I say GOOD. These companies that make kabillions of dollars and pay their workers shit and when called on it hide behind some legalese. McDonald’s is just the first on this one.

McDonald’s Can’t Hide Behind Franchisees Who Exploit Workers, NLRB Rules

Workers rallying for a living wage last August inside a Fifth Avenue McDonald’s (AP)
In a decision laden with potentially super-sized consequences, the federal government ruled on Tuesday that McDonalds is an employer that exerts substantial power over its employees’ working conditions. This ruling by the National Labor Relations Board (NLRB) shot down $5.6 billion company’s assertion that it was not in control of employment decisions at its franchised restaurants.

The federal court ruling allows McDonald’s to be held jointly libel for labor and wage violations committed by its franchise operators. If this ruling is upheld it could have a ripple effect on union options for fast food workers as well as larger implications for unions as a whole.

The decision comes after nearly two years worth of fast food worker strikes, with employees demanding a living wage of $15 an hour and the right to form a union without retaliation. In March, McDonald’s workers in three states filed class-action lawsuits against the company, alleging widespread wage theft.

According to a statement issued by the NLRB, 181 cases involving McDonald’s had been filed since November 2012. Of those cases 43 have been found to have merit.

“McDonald’s can try to hide behind its franchisees, but today’s determination by the NLRB shows there’s no two ways about it: The Golden Arches is an employer, plain and simple,” said Micah Wissinger, an attorney at Levy Ratner who brought the case on behalf of McDonald’s workers in New York City. “The reality is that McDonald’s requires franchisees to adhere to such regimented rules and regulations that there’s no doubt who’s really in charge.”

#2

Hmm…

#3

“The reality is that McDonald’s requires franchisees to adhere to such regimented rules and regulations that there’s no doubt who’s really in charge.”

#4

I just think someone needs to stop using auto correct.

#5

Hey, they exert an iron fist over franchises so it’s only fair they can’t use semantics to hide from responsibility

#6

A friend of a friend of mine has a couple Mcdonalds and from what I’ve heard through the grapevine that is true, he can’t do a damn thing with his “Restaurants” unless Corporate tells him to.

#7

Yep, orders come from the top on wages…

McDonald’s Franchisee: Company Told Me To Pay Employees Less
By Chris Morran August 4, 2014

McDonald’s, the largest fast food employer in the country, is at the center of the ongoing debate about minimum wage levels, and about the relationship between franchisees and their corporate overlords. One owner of a McDonald’s franchise in California says the folks at McDonald’s HQ have an answer for franchisees who complain about paper-thin profit margins on their food — pay employees less money.

In a “First Person” piece posted in today’s Washington Post, the franchisee says smaller operators like her family — they only own a single franchise after McDonald’s did not renew their other store — are being squeezed by the corporate office’s demand for bottom-dollar prices on menu items.

“We try and accommodate our workers, but there’s several issues,” she writes. “The way McDonald’s does it, they work to bring customers into the stores with their very low prices. So the difference for us between a dollar hamburger and a $3 hamburger is huge.”

She says that she complained to McDonald’s years ago that it needs to get away from pushing low-value, low-profit sandwiched, but that the company’s response was “Just pay your employees less.”

The franchisee admits that the low-price stuff does get bodies in the door, but claims that recent pricing changes have taken away her ability to make money on the higher-priced items.

“[I]nstead of sticking with low-price stuff at one level and giving people an opportunity to go up if they wanted a bigger drink to pay more, now we’ve got all size drinks are a dollar,” she writes. “So McDonald’s has gotten itself in a trap. And as an owner operator, and if you don’t do their dollar sandwiches or other discounts, you get punished.”

According to the franchisee, she believes McDonald’s is trying to rid itself of smaller operators like her and her family in favor of mega-franchisees who run dozens of locations.

“Now there are franchisees with 50, 60 restaurants,” she writes. “The way that McDonald’s works is, you pay them rent for the building and the land, and it’s a triple net lease. Plus you pay them for advertising and promotion and PR. Then you pay the bills and what’s left at the bottom is what the owner operator gets.”

And she clarifies that “This is not just a McDonald’s problem,” that this squeeze play is a “standard thing” in fast food industry.

A 2013 survey of McDonald’s franchisees found a growing level of discontent among the franchise owners, as McDonald’s HQ was asking them to improve service and offer new menu items while also continuing to sell value-priced food.

And McDonald’s HQ then screwed up by forcing franchisees to try to sell chicken wings at a price that was significantly higher than people can get at their local sports bar.

Because McDonald’s corporate office gets so much in return and exerts so much influence over franchisees’ businesses, the National Labor Relations Board Office of the General Counsel recently declared that franchisees and McDonald’s HQ should be considered “joint employers,” meaning the corporate office could be held responsible for franchisees who violate labor laws.

#8

I remember when Bush forced poor people to eat at McDonalds. As a result, single moms stopped going to the grocery store and preparing fresh, home cooked meals for their children.

#9

How much is a combo meal at McDonalds nowadays anyway?

I seem to remember it only being a buck or two cheaper than at 5 Guys or Shake Shack, so if they raise those prices they will have to compete head to head on quality…

In Turkey McDonald’s is actually somewhat upscale, but there isn’t a Lira menu.

#10

they have Shake Shack in the Delta terminal at JFK now.

#11

A good burger but not worth those hours in line people used to spend.

Five Guys did pretty much the same thing without the hype. Plus they had MR. PIBB. More places ought to have Mr. Pıbb.

#12

I heard prices did not have to go up to pay people more. This seems to counter that.

#13

Well, they could keep prices the same if they cut the fees paid by the franchise owners. But that too, would displease their shareholders.