Make us your home page
Instagram

NLRB ruling holds McDonald's, not just franchisees, liable for worker treatment

Protesters gather outside of the McDonald’s Corp. headquarters in Oak Brook, Ill., during the company’s annual shareholders meeting in May to demonstrate for a $15-an-hour wage and the right to unionize.

Associated Press

Protesters gather outside of the McDonald’s Corp. headquarters in Oak Brook, Ill., during the company’s annual shareholders meeting in May to demonstrate for a $15-an-hour wage and the right to unionize.

The general counsel of the National Labor Relations Board ruled Tuesday that McDonald's is the joint employer for workers at its franchisees' restaurants, a decision that, if upheld, would disrupt longtime practices in the fast-food industry and ease the way for unionizing nationwide.

Richard Griffin Jr., the labor board's general counsel, said that of the 181 unfair labor practice complaints filed against McDonald's and its franchisees over the past 20 months, he found that 43 had merit on such grounds as illegally firing or threatening workers for pro-union activities.

In those cases, Griffin said he would include McDonald's as a joint employer, a classification that could hold the fast-food company responsible for actions taken at thousands of its restaurants. Roughly 90 percent of the chain's restaurants in the United States are franchise operations.

As fast-food workers and labor advocates have been pressuring McDonald's and other restaurant chains to adopt a $15 wage floor, the companies have often said that they don't set employee wages, the franchise owners do. That defense would be weakened considerably by the workers' push to have them declared joint employers.

In a statement, Angelo Amador, vice president of labor and workforce policy for the National Restaurant Association, called the ruling another example of the Obama administration's anti-small-business agenda. The ruling, he said, "overturns 30 years of established law regarding the franchise model in the United States, erodes the proven franchisor/franchisee relationship, and jeopardizes the success of 90 percent of America's restaurants who are independent operators or franchisees."

If upheld, the general counsel's move would give the fast-food workers and the main labor group backing them, the Service Employees International Union, more leverage in their effort to unionize McDonald's restaurants and to increase hourly wages. The average fast-food wage is about $8.90 an hour.

The fast-food workers movement has argued that McDonald's should be considered a joint employer because it owns many of the franchisees' restaurant buildings and requires franchises to follow strict rules on food, cleanliness and hiring. McDonald's has even warned some franchisees that they were paying their workers too much.

The cases were brought on behalf of workers who assert, among other things, that they were wrongfully fired, threatened or suspended because of their campaign for a $15 hourly wage and to unionize McDonald's.

NLRB ruling holds McDonald's, not just franchisees, liable for worker treatment 07/29/14 [Last modified: Tuesday, July 29, 2014 7:29pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Tribune News Service.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Carrollwood fitness center employs scientific protocol to help clients

    Business

    In 2005, Al Roach and Virginia Phillips, husband and wife, opened 20 Minutes to Fitness in Lakewood Ranch, and last month they opened the doors to their new location in Carrollwood.

    Preston Fisher, a personal fitness coach at 20 Minutes To Fitness, stands with an iPad while general manager/owner Angela Begin conducts an equipment demonstration. The iPad is used to track each client's information and progress. I also included one shot of just the equipment. The center recently opened in Carrollwood. Photo by Danielle Hauser.
  2. Olive Tree branches out to Wesley Chapel

    Business

    WESLEY CHAPEL — When it came time to open a second location of The Olive Tree, owners John and Donna Woelfel, decided that Wesley Chapel was the perfect place.

    The Olive Tree expands its offerings of "ultra premium?€ extra virgin olive oils (EVOO) to a second location in Wesley Chapel. Photo by Danielle Hauser.
  3. Massachusetts firm buys Tampa's Element apartment tower

    Real Estate

    TAMPA — Downtown Tampa's Element apartment tower sold this week to a Massachusetts-based real estate investment company that plans to upgrade the skyscraper's amenities and operate it long-term as a rental community.

    The Element apartment high-rise at 808 N Franklin St. in downtown Tampa has been sold to a Northland Investment Corp., a Massachusetts-based real estate investment company. JIM DAMASKE  |  Times
  4. New York town approves Legoland proposal

    News

    GOSHEN, N.Y. — New York is one step closer to a Lego dreamland. Goshen, a small town about fifty miles northwest of the Big Apple, has approved the site plan for a $500 million Legoland amusement park.

    A small New York town, Goshen approved the site plan for a $500 million Legoland amusement park. Legoland Florida is in Winter Haven. [Times file  photo]
  5. Jordan Park to get $20 million makeover and new senior housing

    Real Estate

    By WAVENEY ANN MOORE

    Times Staff Writer

    ST. PETERSBURG —The St. Petersburg Housing Authority, which bought back the troubled Jordan Park public housing complex this year, plans to spend about $20 million to improve the 237-unit property and construct a new three-story building for …

    Jordan Park, the historic public housing complex, is back in the hands of the St. Petersburg Housing Authority. The agency is working to improve the 237-unit complex. But the latest plan to build a new three-story building for seniors will mean 31 families have to find new homes. [LARA CERRI   |   Tampa Bay Times]