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For: The opinion
California’s landmark law, which seeks minimum wages of up to $22 per hour for fast-food employees, it could still be a reality through a referendum next year.
That is why chains like Chipotle, Starbucks, KFC, Chick-fil-A and McDonald’s have allocated millions of dollars to finance campaigns against this new law.
According to a post by CNN, each of these companies donated $1 million dollars a Save Local Restaurantsa coalition that opposes the law.
Other major fast food companies, business groups, franchise owners and many small restaurants have also criticized the legislation and they have spent millions of dollars on their opposition.
The measure, known as the FAST Act, was signed last year by California Governor Gavin Newsom, and was scheduled to go into effect on January 1.
However, the California secretary of state announced that a petition to stop the implementation of the law he had gathered enough signatures to qualify for one vote on the state’s 2024 general election ballot.
Why are companies opposed to this new law?
Opponents of the law say that it is a radical measure that would have harmful effects That will force prices to rise.
They argue that it unfairly targets the fast food industry and will force companies to lay off workersciting an analysis by UC Riverside economists.
According to these studies, if restaurant workers’ compensation increases by 20%, their food prices they would have to go up by about 7%.
If restaurant workers’ compensation increased by 60%, limited-service restaurant prices would go up to 22%according to the study.
A reference to take the measure to the whole country
The closely watched initiative could transform the fast food industry in California and serve as a benchmark for similar policies in other parts of the country, advocates and critics of the measure argued. This law is the first of its kind in the United States.
California’s fast food industry has more than 550,000 workers. Nearly 80% are people of color and about 65% are womenaccording to the Service Employees International Union.
Advocates for the law, including unions and labor groups, see this as an innovative model for improving pay and conditions for fast food workers.
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