McDonald’s has come under attack from Democrats.
The popular fast food chain has a bullseye on it.
And McDonald’s got one nasty surprise from Gavin Newsom that left it reeling.
California loses more than 10,000 fast food jobs since minimum wage hike
A bill signed by California Governor Gavin Newsom that hiked the minimum wage for fast food workers has predictably resulted in job losses and left chains struggling to survive.
The F.A.S.T Recovery Act went into effect on April 1 last year and increased the minimum wage for fast food workers from $16 an hour to $20.
Salaried fast food managers saw their pay jump from $66,560 to $83,200 a year.
Newsom helped his allies in Big Labor by putting unions in control of the state board that bargained for wages for the nearly 500,000 fast food workers in the state.
The Employment Policies Institute (EPI) conducted a study using data from the Bureau of Labor Statistics (BLS) that found California has shed almost 14,000 fast jobs since the minimum wage hike last April.
California Policy Center Will Swaim said that fast food restaurants responded to higher labor costs by getting rid of employees.
“The minimum wage hike took effect just 11 months ago, and though we’re still in the early days the predictable pattern is already emerging pretty clearly: Facing a 25% hike in their labor costs, employers cut labor,” Swaim stated.
Fast-food restaurants have been forced to adapt to higher costs, and customers and employees have suffered.
“They’ve laid off workers and replaced them with ATM-like kiosks to replace counter service, and even automating their kitchens and closing dining rooms or reducing their store hours,” Swain explained.
“At the same time, owners are raising menu prices — and of course that falls most heavily on lower-income people, and that leads to less store traffic — and that kickstarts another round of layoffs,” Swain added.
Newsom celebrates causing pain to the fast food industry
Newsom’s office touted the fast food minimum wage hike as a win for workers as they were losing their jobs and hours.
He also denies that it’s had any negative effects on the industry.
California’s Fast Food Council, the union-controlled state board governing wages, is considering raising the minimum wage again.
McDonald’s USA President Joe Erlinger warned that California’s fast food minimum wage law should have alarm bells ringing because it could inspire similar legislation in other states.
Big Labor has long targeted fast food for organizing because they’ve driven traditional targets like factories out of business or caused them to relocate overseas or to Right to Work states.
Higher wages for fast food workers in California means that they can collect more in forced union dues.
“Union leaders love to say that higher fast food wages are essential because the cost of living in California is so high,” Swain said. “But the high cost of living is the problem. As a matter of policy, people in the fast food industry would be better served by eliminating the regulations that make everyday living more expensive. Instead of raising wages, the state could make things cheaper – eliminate barriers to new home construction, end regulations that make California gasoline, electricity and water the most expensive in the nation. Generally speaking, California’s high cost of living is self-inflicted, a product of bad policies backed by Democrats and unions.”
Gavin Newsom is running another industry into the ground with socialist policies.
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