California Could Be Possibly Raising the Minimum Wage

Everyone knows most fast food restaurants pay minimum wage to their employees. This is true for California as well, but the soon-to-be-established fast food council plans to change exactly that.

This new fast food council will possibly raise the minimum wage for all fast food establishments including McDonald’s. This can shift many factors such as the price of fast food. Higher wages will come with higher prices of food. Joe Erlinger, who is McDonald’s president for the US, exclaimed that the newly designed bill for a fast food council will do more harm than good. Not only will it hurt everyone in the process he says that it’s lopsided and not stable.

Erlinger has made it clear that he is not against raising the minimum wage in fact, he supports the idea of higher wages for all workers if done fairly. He has gone through the bill and says that this will do the complete opposite once established.

The state senate of California has passed the law for a 10-person council made up of fast food workers, government officials, and restaurant representatives to

tackle issues like wages, safety, and health. They are allowed to control wages from restaurant chains with over 100 locations.

Erlinger claims that this only targets some workplaces and not others which makes it unfair. It brings higher costs to some restaurants and not others when factors like employees and revenues are the same.

He goes on by saying small business owners who own 2 restaurants could be possibly affected if they run restaurants as a part of the chain described. On the other hand, a business owner who owns around 20 different restaurants wouldn’t be affected if they are not a part of the national chain.

Erlinger says it’s “unexplainable” and blames “the outcome of backroom politicking.” It is not an appropriate role for governments to take because winners and losers are being chosen he says. Again Erlinger clarifies that there is nothing wrong with $22 an hour for McDonald’s worldwide. He even says that if it were to happen McDonald’s would be able to operate just fine. All he wants is fairness for all workers because they deserve it.

Economists and California’s Department of Finance have come to an agreement saying that there are some problematic factors within this legislation. The result of this will be an increase in the price of fast food by 20%. This number is already increasing yearly with inflation which adds to the cost. Erlinger has given warnings saying that even if the bill is not signed in California similar bills could swarm the country if allowed.

Erlinger wrote, that instead of asking for what many have called the “California Food Tax,”  those who depend on a thriving restaurant industry —workers, owners, and customers — should be demanding that lawmakers only consider legislation that benefits all.

McDonald’s is not the only chain speaking out against this new bill in California. Chains like Chipotle and Chick-fil-A have had similar ideas and logic when looking at the bill. They are also restaurants that would be highly affected by the bill if it passed. To stop it from happening they have lobbied lawmakers in California to vote against the bill.

Written by Esteban Ruiz
Edited by Sheena Robertson

Sources:

Insider: McDonald’s US president says California’s newly created fast-food council that could raise minimum wage to $22 at its restaurants ‘hurts everyone’

CNN: McDonald’s is fighting California’s fast food bill

CNBC: McDonald’s U.S. head says California fast-food bill unfairly targets big chains

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