Obama's Big Mac Attack

wsj ^ | 7-31-2014

[Citizen Zed]

On Tuesday the NLRB's chief prosecutor directed that the fast-food purveyor be charged as a "joint-employer" in dozens of unfair labor practice complaints filed by workers employed at the company's franchises. The workers claim they were wrongly punished for walking off the job to join rallies coordinated by the Service Employees International Union (SEIU) for a $15 "living wage." Leave aside whether employers can discipline workers who play hookie.

By deeming McDonald's a joint-employer, Mr. Griffin is putting the corporation on the hook for actions taken by its 3,000 or so franchisees—which operate about 90% of restaurants—without its knowledge or consent. As Andrew Puzder describes nearby, franchisees independently make all personnel decisions including hiring, firing, wages, benefits, hours and other work conditions. McDonald's is merely paid a royalty for trademark rights and marketing. This is a bonanza for trial lawyers who will be able to shake down the parent company for alleged labor violations at franchisees whose pockets aren't as deep.

[Citizen Zed]

One day they'll move me from fry's to the night manager position, but I want my $15 an hour now.

[C. Edmund Wright]

The NLRB is a crime syndicate

[apillar]

On the bright side, the NLRB regulations have been getting tossed by the federal courts faster than Obama rushing to the golf course. Virtually every major regulation they've tried to implement has been thrown out. The reason? The NLRB is by design one of the weakest federal boards and has very little real power to make law so constantly gets smacked down for overstepping its authority.

[Buckeye McFrog]

My guess is they plan to use the Attack of a Thousand Slices to convince McD to settle. And the settlement would obviously include voluntary unionization.

[Maceman]

Why on earth do we need an NLRB?

It should be defunded and shut down immediately.

[wbill]

Fast Food Folks need to be careful with what they wish for, they might just get it.

$15 / hour is about $30K/year. Or, about what I'd expect to pay a single first level tech to take care of a bunch of order-taking kiosks that replace all of the button-pushers behind the counter.

[Dr. Sivana]

McDonald's is merely paid a royalty for trademark rights and marketing.

While I agree with the gist of the article, this statement is not really true. The Corporation also is the sole provider for the hamburger meat, napkins, etc., sold at a price determined by the corporation.

Further, the franchisee can't just sell whatever he wants without corporate approval (though McDonald's is better than some in granting it).

[Rusty0604]

I was wondering if the McDonalds that was held liable for security in their parking lot (millions of $) was a franchise.

[Rusty0604]

With a franchise wouldn’t management be the owner? How is the NLRB going to spin that?

[Buckeye McFrog]

The NLRB apparently argued that McDonalds exercises “substantial control” over how the franchised stores are managed day-to-day.

Which they do. But it’s a radical break with sixty years of precedent.

[Soul of the South]

“Why on earth do we need an NLRB?
It should be defunded and shut down immediately.”

If you are represented by a Republican in the House of Representatives this is a good question to pose to him/her. The Republicans have controlled the purse strings of the government since January 2010 when they became the majority party in the House.