McDonald’s Says Regulator Rules It Is a ‘Joint Employer’
Source: AP-NY Times
NEW YORK — McDonald's Corp. says it has been notified by a labor regulator that it can be named a "joint employer" for workers in its franchisee-owned restaurants.
The decision by the National Labor Relations Board was being closely watched because it could potentially expose McDonald's to liability for the working conditions in its franchisees' stores.
In the U.S., the vast majority of McDonald's more than 14,000 restaurants are owned and operated by franchisees. The same is true for many other fast-food companies, including Burger King Worldwide Inc. and Yum Brands, which owns KFC, Taco Bell and Pizza Hut. The companies make money by collecting royalty and sales fees from franchisees.
Labor organizers have said McDonald's should be held accountable as a joint employer because the company has so much control in setting operational terms even at its franchised locations. The matter has come under the spotlight as fast-food groups backed by the Service Employees International Union have protested in cities around the country since late 2012, in a push for higher wages and the right to unionize.
FULL story at link.
Read more: http://www.nytimes.com/aponline/2014/07/29/business/ap-us-mcdonalds-workers.html?smid=fb-share&_r=1
This is HUGE for underpaid fast food workers. It could eventually be used on ANY franchise, not just fast food!!!
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