War of the wages!
Fast food workers in California are asking for another minimum wage hike just months after the Golden State bumped their pay from $16 to $20 an hour.
The California Fast Food Workers Union — a branch of the Service Employees International Union (SEIU) — released a new list of demands at the first-ever meeting of the state’s Fast Food Council, according to KTLA 5 News.
The union is asking that wages for workers be raised to $20.70 per hour by Jan. 1, 2025, “to keep up with the rising cost of living,” the SEIU released in a statement to the outlet.
They also called for increased job stability, fair payment for owed back pay, stable schedules for workers, and a thorough investigation into what they claim are widespread “pervasive abuses” in the fast food industry, KTLA 5 News reported.
They claim the abuses include wage theft, harassment, discrimination, and hazardous working conditions.
“As California’s fast-food industry grows, cooks and cashiers are doubling down on their fight across the state to win safe and healthy stores, stable hours, pay that keeps up with inflation and training to understand their rights on the job,” the SEIU statement read.
Gov. Gavin Newsom formed the council of 11 members in Sept. 2023 to establish wages and regulations for the fast-food industry.
Four months ago, the state’s new $20 minimum wage increase went into effect.
In that short period, fast-food restaurants in California have slashed nearly 10,000 jobs as struggling franchises cut labor costs and raised prices to survive.
Several major chains – including McDonald’s, Burger King, and even low-cost favorite In-N-Out Burger – jacked up prices to offset the higher wages.
Many had to cut employee hours, and some have expedited a move toward automation.
Rubio’s California Grill closed 48 of its nearly 134 locations at the end of May – making it the first major chain to fall victim to the new law.
The San Diego-based company cited the “rising cost of doing business” in the state for the closures and filed for bankruptcy in June.
President and CEO of the California Restaurant Association, Jot Condie, which opposed AB 1228, said businesses are simultaneously feeling the squeeze from rising rents and food costs.
“When labor costs jump more than 25% overnight, any restaurant business with already-thin margins will be forced to reduce expenses elsewhere,” Condie told the outlet.
“They don’t have a lot of options beyond increasing prices, reducing hours of operation, or scaling back the size of their workforce.”
Fast food joints have also reiterated concerns about these rising operations costs to the council.
“I have been forced to raise prices,” an Arby franchisee told the council, according to KTLA 5 News.
“I try to do the best I can. I have taken money out of my own savings to make things work this last quarter. But I don’t know how long I’ll be able to sustain something like that moving forward.”
Customers have also felt the brunt of the new law. A survey conducted by LendingTree found 78% of consumers now consider fast food a “luxury” purchase due to how expensive the meals have become.
However, the SEIU and Newsom’s office cite data showing the industry added thousands of jobs after the law took effect on April 1, with employees not affected by the layoffs welcoming the new demand for a pay increase.
“It’s been really good because I can put more food on the table and in my fridge and pay my rent on time which was always a challenge,” Oakland Wendy’s employee Romualda Alcazar Cruz said Wednesday.
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