Obama’s attack on franchises affects challenge to Seattle’s $15 min wage fairness

NW Spotlight_thb

by NW Spotlight

The decision this week by the National Labor Relations Board’s general counsel to classify McDonald’s as a “joint employer” of its franchisees’ employees has connections to the lawsuit filed in June by the International Franchise Association (IFA) against the franchisee provisions in Seattle’s new minimum wage law.

The IFA lawsuit alleges that the city’s law illegally discriminates against franchisees and improperly treats them not as the small, locally-owned businesses they are, but as large, national companies. Under the law, small-business franchisees are required to adopt the full minimum wage increase in the same 3-year time frame as businesses with more than 500 employees.

IFA President Steve Caldeira was interviewed on video this week by Wall Street Journal Live about the NLRB counsel’s decision, and below is an editorial in Thursday’s Wall Street Journal “Obama’s Big Mac Attack,” about the implications to the franchiser-franchisee business model and SEIU’s involvement in the NLRB decision.

  • Moe

    Do the math. $15 an hour is nowhere near a living wage. I need at least 20 or more. I am hopeful that the min wage will be at least that in 2 years.

    • unemotional

      A minimum wage and living wage are two different things. A living wage also depends on the frugality and financial commitments of the earner. When I was right out of high school working a minimum wage job I had to share an apartment with a few others, drive a cheap car, not eat out much and do without stuff. By adapting I made my minimum wage a modest living wage. Then I improved myself and advanced. If I were still working that job now, 30 years later, I would be pathetic indeed.

      • broke econ

        The problem is the jobs our enconomy are growing right now are overwhelmingly low wage jobs. The gap widens which makes for a less stable economy; more boon and busts in the US future. Even recent college grads yhujjjjjjjjjjyyyyyyyhu (my cat just walked by) and I don’t mean those grads who majored in Ruskie Lit, can’t find a decent paying job. When they do find a decent paying job it’s often only a 25-30 a week job or a ‘contract’ job thats over in 9 months. This isn’t the 70’s or 80’s. Back then’ like you’ I shared a 2 bedroom apt with 2 friends. We rotated between the room with a bunkbed and the single. Now days it 6 (or 7) guy sharing a 3 bedroom and all of them working only 20-30 hours. All of them WANT 40 hours though.

        • unemotional

          The issue is confused by bundling minimum wage and living wage together as if they mean the same thing. A living wage defies definition because it will mean something totally different for someone in NY City and Biloxi Miss. Basically a “living wage” is whatever an individual determines is what they need to live a lifestyle they want at any given time. The idea that the government can accommodate that need is absurd.

    • guest

      Newport Moe’s Chowder tastes far better – albeit in no need of annoy’ster cracker- barrel condiments set forth on the tableau here.