The following is an open letter from Joe
Erlinger, President of McDonald's USA
CHICAGO, Aug. 31,
2022 /PRNewswire/ -- As President of McDonald's
USA, it may come as a surprise to
hear that I support raising minimum wages for workers. In fact, I
welcome legislation that increases wages for all workers.
I also welcome a dialogue on legislation requiring mandatory
training around safe, inclusive and respectful workplaces –
something already underway at every McDonald's worldwide.
When done thoughtfully, fairly and applied across an even
playing field, this kind of legislation can be highly
effective.
But California's state legislators have just passed a
bill called AB 257, which is now flying to Governor Newsom's desk,
and will do the exact opposite.
Its proponents say their bill should be a model for other states
(and special interest groups are directing money to make this a
reality). This should raise alarm bells across the
country.
That's because California's
approach targets some workplaces and not others. It imposes
higher costs on one type of restaurant, while sparing
another. That's true even if those two restaurants have
the same revenues and the same number of employees.
Let me explain how. If you are a small business owner running
two restaurants that are part of a national chain, like McDonald's,
you can be targeted by the bill. But if you own 20 restaurants that
are not part of a large chain, the bill does not apply to you. For
unexplainable reasons, brands with fewer than 100 locations are
excluded. Even more mystifying, the legislation excludes certain
restaurants that bake bread. I can only conclude this is the
outcome of backroom politicking.
This is a clear example of picking "winners" and "losers," which
is not the appropriate role of government.
Putting aside so many problems with the bill, it could require
single-location franchise owners of these large chain restaurants
to pay workers $22 per hour by as
early as 2023—40% more than the current hourly wage in California.
Aggressive wage increases are not bad. McDonald's, for
instance, operates very successfully in high wage
environments across the country and around the world, and in
places that require more than $22 in
all restaurants.
But if it's essential to increase restaurant workers' wages and
protect their welfare – and it is – shouldn't all restaurant
workers benefit?
This lopsided, hypocritical and ill-considered legislation
hurts everyone. Many economists who have studied this
issue agree this bill is problematic, as has the state's own
Department of Finance.1
Economists say it could drive up the cost of eating at
a quick service restaurant in California by 20% at a time when
Americans already face soaring costs in supermarkets and at gas
pumps.
California is my birth state
and it's hard to watch it earn its reputation for driving
businesses out of the state.
But this isn't just a cautionary tale for California's customers, workers, and business
owners. Proponents of this bill have made it clear they want to see
it expand across the country, regardless of whether Governor Newsom
signs the bill into law. That would be terrible.
They are also encouraging voters everywhere to ask their
lawmakers to adopt California's
counterproductive model in their own states.
Rather than asking for what many have decried as the "California
Food Tax," those who count on a thriving restaurant
industry—workers, owners and customers— should be asking
lawmakers to only consider legislation that benefits all.
Once again, California is not
leading the way. We should all demand better and I welcome a
productive dialogue with elected leaders across the country.
Joe Erlinger President, McDonald's USA
1 https://esd.dof.ca.gov/LegAnalysis/getPdf/066D8BA5-C012-ED11-913B-00505685B5D1
About McDonald's USA
McDonald's USA, LLC, serves a
variety of menu options made with quality ingredients to millions
of customers every day. Ninety-five percent of McDonald's
approximately 13,500 U.S. restaurants are owned and operated by
independent business owners. For more information, visit
www.mcdonalds.com, or follow us on Twitter @McDonalds and on
Facebook at www.facebook.com/mcdonalds.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/elected-leaders-could-help-all-restaurant-workers-by-learning-from-californias-mistakes-301615415.html
SOURCE McDonald's USA