By Arlenys Tabare
Mar 28, 2024, 3:25 PM EDT
As the new minimum wage law in California that was approved last year by Governor Gavin Newsom takes effect, hundreds of fast food chain employees are now losing their jobs.
Companies in the Golden State such as Pizza Hut and Round Table Pizza, among others, are cutting their expenses, after learning that starting this Monday, April 1, fast food chain workers will have a salary increase of $4 dollars. The new salary will be $20 dollars an hour.
Although after the meeting in September of last year between the mayor and members of unions that represent 80% of the workforce in the state, Newsom expressed that this adjustment “is something important”some restaurants are already planning to make job cuts, stop hiring, reduce working hours and even suspend delivery services this year.
In this regard, a Pizza Hut spokesperson indicated that “when certain California franchisees have chosen to make changes to their personnel approach, Access to delivery service will continue to be available through the Pizza Hut mobile app, website and phone ordering.and the customer ordering experience will remain consistent,” he said.
In December of last year alone, Pizza Hut announced the layoff of at least 1,200 delivery workers. The same reported Round Table Pizza, which detailed plans to eliminate about 73 delivery driver workers next monththat represents approximately 21% of their workforce.
On the other hand, While some restaurant chains announce waves of layoffs, others report price increases on their menus As a way to compensate for salary adjustments, such is the case of Chipotle, which will be forced to apply some measures.
Likewise, other companies, faced with the pressure of increased wages and sustained inflation two years ago, have come under pressure, deciding to close a large number of locations, not only in the state of California but in the rest of the country.
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