Photo: RetailWire
In an open letter last week, McDonald's USA president Joe Erlinger blasted proposed California legislation related to conditions for fast food workers as stemming “almost entirely at the behest of organized labor's firm grip on many of the state's lawmakers.”
Mr. Erlinger argued that the impetus for the bill is that despite “years of work, and hundreds of millions of dollars,” organized labor continues to lose ground. He said that the U.S. unionization rate in 2022 shrunk to 10.1 percent, the lowest on record.
“Simply put, organized labor hasn't been successful going through the front door — giving everyday workers the ability to choose whether they want a union,” he wrote. “So it asked for a backdoor — pushing Sacramento lawmakers to introduce, pass and sign a bad policy that hurts small businesses, workers and consumers.”
The act, AB257, could raise the minimum wage for fast food workers as high as $22. The bigger change, however, is the planned formation of a 10-member, state-run council to negotiate wages, hours and working conditions for non-union fast food workers in California, potentially setting a precedent across the U.S. for negotiating workplace standards.
Proponents argue that worker challenges during the pandemic demonstrated the need for an independent council.
Following strong opposition from fast food restaurants and business trade groups, California’s secretary of state last week said a petition to stop the law’s implementation had gathered enough signatures to qualify for a vote on the state’s 2024 general election ballot.
Despite stagnant membership growth, unionization has been on the rise at Starbucks, Amazon.com, Apple and elsewhere. A Gallup poll last August found that 71 percent of Americans approve of unions, up seven percent since before the pandemic and the highest rating since 1965.
In a recent Harvard Business Review column, Sharon Block, executive director of the labor and worklife program at Harvard Law School, said that, given the tight labor market and organization efforts, past antagonistic unionization approaches should be reconsidered. She wrote, “An ugly anti-union effort can hurt morale, reputation and increase turnover. Conversely, companies that take steps like voluntary recognition, partnering to create the best conditions for a fair campaign and respecting workers’ decisions can preserve a positive relationship with their employees.”
- California keeps looking for ways to raise prices, drive away more businesses and destroy growth through bad policy and bad politics – McDonald's USA
- Union membership rate fell by 0.2 percentage point to 10.1 percent in 2022 – BLS
- McDonald’s, In-N-Out, and Chipotle are spending millions to block raises for their workers – CNN
- Californians to vote on overturning a new law that could raise fast-food worker wages – Los Angeles Times
- McDonald's Exec Slams California Lawmakers for Passing Fast-Food Law – Business Insider
- U.S. Approval of Labor Unions at Highest Point Since 1965 – Gallup
- How to Work with Your Unionizing Employees – Harvard Business Review
- Should retail fear or embrace organized labor’s comeback? – RetailWire