19 Sep 2022 03:07 GMT
The new legislation, which is expected to take effect on January 1, could establish a minimum wage of up to $22 an hour.
Several restaurant owners, business groups and others in the state of California (USA) are seeking a referendum to permanently nullify a new labor law for the fast food industry, reports The Wall Street Journal.
State Governor Gavin Newsom signed legislation that would create a 10-person council, including workers, union representatives, employers and business attorneys, that could set a minimum wage of up to $22 an hour (currently $15 dollars) for workers in the sector, a figure that would increase depending on inflation.
The new law is expected to take effect on January 1. However, it would be suspended if the referendum goes ahead, for which it will be necessary meet approximately 623,000 valid signatures before next December 4.
From the coalition called Protect Neighborhood Restaurants, they indicated that they are in favor of putting the implementation of said law to a vote – something that, if accepted, would occur in 2024 – because they consider that it is “a big step in the wrong direction.”
Why are they opposed?
Fast-food corporations and their franchisees, who have already submitted the referendum proposal to the California Attorney General’s Office, accuse lawmakers of singling them out and saying forcing them to raise wages so quickly would cause their operating costs to skyrocket. and, consequently, the prices of the whole industry would increase.
“Unfortunately, in a already high inflation environmentWe will now be forced to pass most of the pay raise on to customers, at least in the short term,” said Anand Gowda, founder of High Bluff Capital Partners, which owns the Church’s Chicken and Quiznos chains.
For her part, Mary Kay Henry, president of the Service Employees International Union (SEIU), said she hopes the referendum will not go ahead. Likewise, she assured that they are prepared to fight for the new law.
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