The National Labor Relations (NLRB) has allowed the workers the right to file labor complaints to treat the world's largest fast food chain, McDonald's, as a "joint employer" with its franchisees.
"HUGE victory for labor & fast food workers!" tweeted the Service Employees International Union. The news regarding the new policy was published in The New Times report.
McDonald's has about 3,000 franchisees in the U. S., according to the company's website. The company has a total of about 14,000 restaurants in the U. S.
Heather Smedstad, who spoke on the behalf of the Oak Brook, Ill.-based company, has revealed McDonald's review on this. The company thinks that this decision and the change that is likely to follow goes against the decades of established law franchise model in the U. S. This will change the rule for thousands of small businesses.
"Wrong" is McDonald's way of describing the decision as franchisees own about 89% of the more than 14,000 U. S. restaurants. This will allow unfair labor practice complaints, thus failing to establish a joint employer relationship.
David French, the National Retail Federation's senior vice-president for government relations, says that this gives a whole new meaning to the word 'outrageous'.
Smedstad, senior vice-president of human resources in the U. S., says the fast-food giant "and the other companies with franchisees abide by the rules to run their business successfully. These rules and regulations have so far been genuine enough to boost opportunities of employment and entrepreneurship.
Protests in recent months over pay at McDonald's were picking up a strong resistance. SEIU President Mary Kay Henry along with several McDonald's workers was arrested.
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