Why McDonald's Is Furious With The State Of California

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The California plan that provides the state more authority over fast-food workers' salaries has been attacked by the president of McDonald's in the United States. The burger king claims that large chains are unfairly singled out.

Joe Erlinger's comments follow the state's announcement that it would grant a 10-person committee the power to increase the minimum wage for the food industry for chains with more than 100 national sites to $22 an hour. The current minimum wage in Golden State is $15.50 per hour.

The California plan that provides the state more authority over fast-food workers' salaries has been attacked by the president of McDonald's in the United States. The burger king claims that large chains are unfairly singled out.

Erlinger stated on the McDonald's website that he is in favour of raising the minimum wage for all workers as long as it is done carefully and fairly. And the law can be quite effective if it is properly applied on a level playing field. He is also open to discussion on legislation that would make workplace safety, inclusion, and respect necessary. This training is already being provided at every McDonald's location worldwide.

Erlinger gave an explanation of his position, stating that California's strategy favours some workplaces while ignoring others, increasing prices for one category of restaurants while sparing others.


The head of McDonald's also mentioned that money is being directed by special interest groups to pass the legislation because its supporters think it might serve as a model for other states. He concluded his statement by saying, "This should sound the alarm across the nation."

McDonald's remarks on proposed legislation mark a rare instance of a public statement, as such statements are typically made in private through lobbyists. The strong reaction is not all that surprising given that the popular burger brand is the main target of the law, which would impact hundreds of fast-food companies operating in California.

Around 1,100 Golden-arched eateries can be found throughout California, and opponents of the proposal claim that if it passed, fast-food establishments would be forced to hike their prices by 20% to cover the higher wage rates.

Other food chains have opposed the bill, CNBC reported. Chipotle Mexican Grill, Chick-fil-A, Yum Brands, and Restaurant Brands International have lobbied California lawmakers to oppose the proposed bill, according to state records. According to California statistics, the National Restaurant Association spent $140,000 fighting the law.

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