Walters: Two years on, Californians still don't know impact of $20 fast-food wage

"Unions seek higher wages and benefits, citing the welfare and financial needs of workers and their families. Employers counter that the cost of providing what unions want adversely affects their competitiveness in other states and nations and forces them to raise prices, reduce employment or even leave California to remain solvent. In the main, unions fare better than employers in California's political arena not surprising given that union-friendly Democrats from the governor down dominate the Capitol."

"One of the most intense union-employer battles arose in 2022 over legislation that would have raised the minimum wage for fast food workers to $22 an hour. It also declared that fast food franchises are merely subsidiaries of their parent chains, rather than independently owned businesses. Fast food companies and franchisees saw it as a double whammy that not only would increase their costs but it would undermine the franchise system itself."

"The industry responded with a campaign to put the issue on the ballot, pledging that affected corporations would spend any amount of money to overturn the law due to its effects on the franchise system. Which faction would win such a battle will never be known, however, because a year after the bill was signed and after lengthy negotiations, a compromise was worked out and quickly enacted."

California's Legislature is processing thousands of bills as union-employer conflicts over working conditions dominate key proposals. Unions press for higher wages and benefits to support workers and families, while employers warn that increased labor costs harm competitiveness, force price increases, reduce employment, or drive businesses out of state. Union-friendly Democrats broadly control the Capitol, giving labor an advantage. A 2022 clash produced a proposal to raise fast-food wages to $22 an hour, treat franchises as subsidiaries, and create an appointed council to regulate conditions. After industry pushback and a ballot threat, negotiators enacted a compromise raising wages to $20 an hour and retaining the oversight council with modifications.

Read at www.mercurynews.com