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Who’s the Boss? McDonald’s is, Feds Determine
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Contrary to Companys Repeated Claims, Move by NLRB Shows Fast-Food Giant is An Employer
Labor Board says McDonalds plays critical role in employment decisions at its restaurants; Company cant hide behind franchisees any longer
New York, NYDespite McDonalds repeated assertions that it does not control employment decisions at its franchised restaurants, the federal government Tuesday said that the $5.6 billion company is indeed an employer that exerts substantial power over its employees working conditions.
In a determination that carries widespread implications for the fast-food industry, the National Labor Relations Boards general counsel found that McDonalds wields such extensive influence over the business operations of its franchisees that individual franchise operators have little autonomy in setting or controlling workplace conditions. McDonalds, for all intents and purposes, is the employer.
The general counsels office Tuesday informed regional directors of the NLRB in offices around the country that McDonalds should be treated as an employer. There are dozens of charges alleging illegal conduct by the fast-food giant pending in at least 17 cities that could now be adjudicated using the governments new directive.
McDonalds can try to hide behind its franchisees, but todays determination by the NLRB shows theres 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 McDonalds workers in New York City. The reality is that McDonalds requires franchisees to adhere to such regimented rules and regulations that theres no doubt whos really in charge.
For nearly two years, McDonalds and other fast-food workers across the country have been joining together and going on strike, calling for $15 and the right to form a union without retaliation. But time and time again, the company and other industry players have tried to sidestep workers calls, inventing a make-believe world in which responsibility for wages and working conditions falls squarely on the shoulder of franchisees.
Now that the government has recognized what us workers have always known that McDonalds is the bossmaybe the company will stop making excuses for why were treated so poorly and pay us a wage we can live on, said Richard Eiker, who has worked for the same Kansas City McDonalds franchisee for 18 years.
As the federal governments determination shows, McDonalds clearly uses its vast powers to control franchisees in just about every way possible, said Kendall Fells, organizing director of Fast Food Forward. Its time the company put those same powers to work to do something about the fact that its workers are living in poverty.
The governments determination is the latest challenge to the fast-food industrys low-wage business model, in which franchisors reap rewards of a profitable industry, while forcing franchisees to shoulder all the risk. In March, McDonalds workers in three states filed class-action lawsuits against the company, alleging widespread wage theft. The New York Times wrote that the suits, argue that both the corporate parent and the independently owned franchises where many of the plaintiffs work are jointly responsible for illegal pay practices carried out by the franchises That strikes at the heart of the low-wage fast-food business model.
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