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BY VASANTHA
COVER.METALNATION.ORG
McDonald's USA president Joe Erlinger criticized California lawmakers for passing a fast-food law that makes it "all but impossible to run small business restaurants" in the state, in an open letter.
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According to AB 257, the FAST Act could raise restaurant wages in the state to $22. Following approval of a referendum by the state, fast-food chains will support the law in November 2024. Previous to January 1, the law would take effect. No law can be implemented before the vote.
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There are nearly 14,000 McDonald's restaurants in the US, with hundreds in California. The open letter titled, "California keeps raising prices, driving away businesses, and destroying growth."
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Erlanger said he wasn't against raising the minimum wage. "Our business thrives when our employees and communities thrive," he said. We support legislation that leads to meaningful improvements in our communities.
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Erlinger said California has become a dramatic example of bad politics over good policies, whether you're a legislator, business owner, or voter. In the latest year for which complete compensation history is available, Erlinger received about $7.4 million from McDonald's.
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The referendum was supported by McDonald's, Chipotle, and In-N-Out. Several McDonald's franchisees' consultants said they aren't surprised about Erlinger's remarks, which may set up a battle towards November 2024. In 2024, there will be a presidential election.
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