Wage war!
Fast food workers in California are calling for another minimum wage increase, just months after the state raised its minimum wage from $16 to $20 an hour.
of California Fast Food Workers Union The union, an affiliate of the State Service Employees International Union (SEIU), announced the new list of demands at the inaugural meeting of the state’s Fast Food Council. KTLA 5 News.
In a statement to the outlet, SEIU said the union is calling for workers’ hourly wages to be increased to $20.70 by Jan. 1, 2025 “to address the rising cost of living.”
They also demanded greater job security, fair payment of unpaid wages, stable work schedules for workers, and a thorough investigation into the “rampant abuses” common in the fast-food industry, according to KTLA 5 News.
They allege these abuses include wage theft, harassment, discrimination and unsafe working conditions.
“As California’s fast food industry grows, cooks and cashiers across the state are stepping up their fight to win safe and healthy stores, consistent hours, wages that keep up with inflation, and training to understand their workplace rights,” the SEIU statement said.
Gov. Gavin Newsom created an 11-member council in September 2023 to establish wages and regulations for the fast-food industry.
Four months ago, the state’s new $20 minimum wage increase went into effect.
In that short time, California fast-food restaurants have cut about 10,000 jobs as struggling franchisees cut labor costs and raised prices to stay afloat.
Several major chains, including McDonald’s, Burger King and even the popular low-cost In-N-Out Burger, have raised prices to offset rising wages.
Many businesses have been forced to cut employee hours, and some have accelerated the shift to automation.
Rubio’s California Grill closed 48 of its approximately 134 locations at the end of May, becoming the first major chain to fall victim to the new law.
The San Diego-based company filed for bankruptcy in June, citing “rising costs of doing business” in the state as the reason for the closure.
Jot Condie, president and CEO of the California Restaurant Association, which opposed AB 1228, said businesses are feeling the squeeze from rising rent and food costs at the same time.
“When labor costs jump by more than 25 percent overnight, the already thin-margin restaurant industry is forced to cut other expenses,” Condie told the outlet.
“They don’t have many options other than to raise prices, cut opening hours or reduce staff numbers.”
Fast food restaurants have also repeatedly raised concerns about these rising operating costs with the city council.
“We had no choice but to raise our prices,” an Arby’s franchisee told Congress. KTLA 5 News.
“I’m trying my best. I’ve withdrawn money from my savings to get by this quarter, but I don’t know how much longer I can continue living like this.”
Customers are also being heavily affected by the new law. LendingTree Research shows that meals have become so expensive that 78% of consumers now consider fast food a “luxury item.”
But SEIU and Newsom’s office cited data showing the industry has created thousands of jobs since the law took effect on April 1, and employees not affected by layoffs have welcomed the new wage demands.
“It’s really good because it helps us put more food on the table and in the fridge and helps us pay our rent on time, which is usually a struggle,” Romualda Alcazar Cruz, a Wendy’s employee in Oakland, said Wednesday.
