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(Huffington Post)   McDonald's responsible for employees in franchised restaurants. McDonald's doesn't like this ruling. NLRB is lovin' it though   (huffingtonpost.com ) divider line
    More: Interesting, McDonalds, National Labor Relations Board, Yum! Brands Inc., unfair labor practice, labour movement, movie franchise, workers' rights  
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1805 clicks; posted to Business » on 30 Jul 2014 at 7:07 PM (1 year ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-07-30 05:53:29 PM  
Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.
 
2014-07-30 06:00:50 PM  
Just designate all the employees independent contractors.
 
2014-07-30 06:20:59 PM  

ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.


McDonald's gets a piece of the action off every sale, whether it's at corporate or franchised stores. They can't establish standards and policies for the entire chain and then claim no responsibility for the employees of the franchise stores.
 
2014-07-30 06:26:02 PM  

fusillade762: Just designate all the employees independent contractors.


Yeah, that would work. All the contractors would be paid their gross wages -- which would be individually and independently negotiated with the company -- and be responsible for filing quarterly estimated federal, state, and self-employment taxes, with the company issuing 1099's to each one of them at the end of the year. I'm sure that kid in high school is going to want to go through all that for minimum wage.
 
2014-07-30 07:20:15 PM  

ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.


The argument is that McDonalds franchise agreements are so restrictive on their franchisees that they aren't really operating as independent stores.
 
2014-07-30 07:21:42 PM  

Fark Me To Tears: ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.

McDonald's gets a piece of the action off every sale, whether it's at corporate or franchised stores. They can't establish standards and policies for the entire chain and then claim no responsibility for the employees of the franchise stores.


THIS

The entire point of the corporation is to keep all the profits and remove all the responsibility. Nice to see a ruling go the common-sense way.
 
2014-07-30 07:24:08 PM  
Boggles the mind that people still eat at McDonalds when Wendy's is better in every conceivable way.
 
2014-07-30 07:24:56 PM  

bionicjoe: Fark Me To Tears: ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.

McDonald's gets a piece of the action off every sale, whether it's at corporate or franchised stores. They can't establish standards and policies for the entire chain and then claim no responsibility for the employees of the franchise stores.

THIS

The entire point of the corporation is to keep all the profits and remove all the responsibility. Nice to see a ruling go the common-sense way.


Except SCOTUS will eventually overturn the decision.
 
2014-07-30 07:25:05 PM  
I thought this was common knowledge. Franchisees aren't just paying for the use of the name Big Mac, after all.
 
2014-07-30 07:25:44 PM  

Stile4aly: ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.

The argument is that McDonalds franchise agreements are so restrictive on their franchisees that they aren't really operating as independent stores.


Most people wouldn't be able to tell a franchise from the real thing if their lives depended on it.
 
2014-07-30 07:28:14 PM  

The My Little Pony Killer: Stile4aly: ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.

The argument is that McDonalds franchise agreements are so restrictive on their franchisees that they aren't really operating as independent stores.

Most people wouldn't be able to tell a franchise from the real thing if their lives depended on it.


Are there any O&O McDonald's? Maybe the original?
 
2014-07-30 07:34:40 PM  

Cymbal: Boggles the mind that people still eat at McDonalds when Wendy's is better in every conceivable way.


That's like saying getting kicked in the yam bag is better then slamming it in a car door.
 
2014-07-30 07:39:46 PM  

Stile4aly: ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.

The argument is that McDonalds franchise agreements are so restrictive on their franchisees that they aren't really operating as independent stores.


Fark Me To Tears: ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.

McDonald's gets a piece of the action off every sale, whether it's at corporate or franchised stores. They can't establish standards and policies for the entire chain and then claim no responsibility for the employees of the franchise stores.


Both of these. They set all the standards, including policies governing employee conduct, hours (not specific people), uniform they deserve the whole thing.

Workers have been on strike from McDonalds within the last year or so here in Harrisburg. Some of the reasons are not McD's (corporate) but on the franchise owner but some of the gripes are corporate.

It really was a sad story:

http://www.thenation.com/blog/173217/mcdonalds-guest-workers-stage-s ur prise-strike
 
2014-07-30 07:40:56 PM  

haemaker: Are there any O&O McDonald's? Maybe the original?


The original (and 2nd locations) are no more.  The oldest location is the 3rd one opened in Downey, California.  Although McDonald's corporate likes to pretend all the pre-Kroc stores never happened.  But even the first first Kroc store was demolished in the 80's, but they've since built a replica to act as a museum.

As to ownership, per McDonald's website, 19% of locations are corporate owned.
 
2014-07-30 07:44:02 PM  
Great!  Now can we get a similar ruling for car dealerships and telcos?

/if they come to my house wearing your uniform and drive trucks with your logo...
 
2014-07-30 07:48:26 PM  

Piizzadude: Workers have been on strike from McDonalds within the last year or so here in Harrisburg. Some of the reasons are not McD's (corporate) but on the franchise owner but some of the gripes are corporate.

It really was a sad story:

http://www.thenation.com/blog/173217/mcdonalds-guest-workers-stage-s ur prise-strike


No news in over a year?  Can't find any articles about this newer than March '13.
 
2014-07-30 07:58:24 PM  

Fark Me To Tears: fusillade762: Just designate all the employees independent contractors.

Yeah, that would work. All the contractors would be paid their gross wages -- which would be individually and independently negotiated with the company -- and be responsible for filing quarterly estimated federal, state, and self-employment taxes, with the company issuing 1099's to each one of them at the end of the year. I'm sure that kid in high school is going to want to go through all that for minimum wage.



And independent contractors control their own schedules.  That defeats the purpose to have a restaurant that needs 20 people scheduled over the lunch rush if they get to set their own schedules.
 
2014-07-30 08:21:09 PM  

Cymbal: Boggles the mind that people still eat at McDonalds when Wendy's is was better in every conceivable way.


I've preferred Wendy's over McDonald's ever since I was a kid, but their quality took a sharp dive over the last few years. Toasting stale buns, thinner chicken fillets, worse fries (skin-on fries are just an excuse to use the garbage part of the potato), and so on. It's kind of sad.
 
2014-07-30 08:21:33 PM  

bdub77: bionicjoe: Fark Me To Tears: ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.

McDonald's gets a piece of the action off every sale, whether it's at corporate or franchised stores. They can't establish standards and policies for the entire chain and then claim no responsibility for the employees of the franchise stores.

THIS

The entire point of the corporation is to keep all the profits and remove all the responsibility. Nice to see a ruling go the common-sense way.

Except SCOTUS will eventually overturn the decision.


I don't wish for people to die, but please, let Scalia kick it with a Democrat in the White House before this case happens...
 
2014-07-30 08:23:39 PM  
I've said this for years. If they wear your logo and work in your establishment, they are employees of yours. Period.

I've shared this CSB before. When staying at a Marriott 3 years ago, the valet got a ding in our car door. Marriott tried to deflect the blame saying they were contractors. It was my friends car. He called them up and biatched out the manager of the hotel saying "If they wear your god damned uniform, in your god damned hotel, then they are your god damned employee."  Marriott did get the ding out of his car.
 
2014-07-30 09:06:42 PM  

Cymbal: Boggles the mind that people still eat at McDonalds when Wendy's is better in every conceivable way.


Are you sure about that?  Super sure?

Then here is my exhibit A of Wendy's terribleness:

http://youtu.be/FsN57jDftkU

<iframe width="560" height="315" src="//www.youtube.com/embed/FsN57jDftkU?rel=0" frameborder="0" allowfullscreen></iframe>
 
2014-07-30 09:36:13 PM  

Angela Lansbury's Merkin: haemaker: Are there any O&O McDonald's? Maybe the original?

The original (and 2nd locations) are no more.  The oldest location is the 3rd one opened in Downey, California.  Although McDonald's corporate likes to pretend all the pre-Kroc stores never happened.  But even the first first Kroc store was demolished in the 80's, but they've since built a replica to act as a museum.

As to ownership, per McDonald's website, 19% of locations are corporate owned.


Hell, the McDonald brothers in general are nearly absent from the corporate history. When I worked at a McDonald's we had to watch a history video and it didn't mention them by name a single time.
 
2014-07-30 09:39:59 PM  

ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.


It wouldn't change anything other than increase the liability for the top corporate entity. And with the amount of control Corporate has over how the restaurants are run you can certainly make a case. If corporate sent out a memo saying "you must pay all employees at least $10 per hour" the vast majority of francinsees would be compliant within a couple weeks.
 
2014-07-30 10:00:20 PM  

ArkAngel: Don't see how this works. If anything, McDonald's is an employer only of the franchisee. If hte feds win on this, it's gonna flip the entire franchise system on its head.


Then let it. We need companies paying living wages if America is going to survive as a world power. This "technically correct" bullshiat explotation of the American system is allowing wealth to flow out of this country at an unprecedented rate and into the pockets of a select few well beyond the reach of governmental accountability.
 
2014-07-30 10:04:14 PM  
Will this apply to Nike factories in Vietnam, where they shoe off-cuts into McNuggets?
 
2014-07-30 11:23:21 PM  

Cymbal: Boggles the mind that people still eat at McDonalds when Wendy's is better in every conceivable way.


Not on fries.

/Especially since that "All-natural sea salt" change.
 
2014-07-31 05:24:47 AM  

IlGreven: Cymbal: Boggles the mind that people still eat at McDonalds when Wendy's is better in every conceivable way.

Not on fries.

/Especially since that "All-natural sea salt" change.


The funny thing is, the new fries really were better for the first month. They went from lukewarm mashed potato sticks to honest-to-god french fries, and it was amazing. I mean, I don't prefer that style of fries, but they were good for what they were, and were actually edible. For a month. Then, they were just oily mashed potato sticks instead of crusty mashed potato sticks. It's my opinion that they spent the first month subsidizing the fries so they would always have fresh cooked fries, then they went back to holding them under a sad heat lamp. It's funny that a restaurant that prides itself on making each sandwich to order insists on holding their fries too long.
 
2014-07-31 08:13:34 AM  
All this is going to do is hurt the franchisees, particularly the well run operations.  Instead of a 5% of revenue for a royalty fee, not it's going to be a 5% royalty and requires you to be included a franchise group risk retention group covering workers compensation and employment practices liability.  As a co-employer that is how that will have to work and McD's corporate will not take second fiddle on a franchisee's policy.  Now all of the well run franchisees get a share of the poorly operated franchisees losses.
 
2014-08-01 04:53:38 AM  

TopoGigo: IlGreven: Cymbal: Boggles the mind that people still eat at McDonalds when Wendy's is better in every conceivable way.

Not on fries.

/Especially since that "All-natural sea salt" change.

The funny thing is, the new fries really were better for the first month. They went from lukewarm mashed potato sticks to honest-to-god french fries, and it was amazing. I mean, I don't prefer that style of fries, but they were good for what they were, and were actually edible. For a month. Then, they were just oily mashed potato sticks instead of crusty mashed potato sticks. It's my opinion that they spent the first month subsidizing the fries so they would always have fresh cooked fries, then they went back to holding them under a sad heat lamp. It's funny that a restaurant that prides itself on making each sandwich to order insists on holding their fries too long.


Who gets the fries at Wendy's? Seriously, over the chili? Over the baked potato or the Cesar side salad?
/but your right their fries suck
//I do lover everything else they have though.
 
2014-08-01 05:18:43 AM  

tjsands1118: TopoGigo: IlGreven: Cymbal: Boggles the mind that people still eat at McDonalds when Wendy's is better in every conceivable way.

Not on fries.

/Especially since that "All-natural sea salt" change.

The funny thing is, the new fries really were better for the first month. They went from lukewarm mashed potato sticks to honest-to-god french fries, and it was amazing. I mean, I don't prefer that style of fries, but they were good for what they were, and were actually edible. For a month. Then, they were just oily mashed potato sticks instead of crusty mashed potato sticks. It's my opinion that they spent the first month subsidizing the fries so they would always have fresh cooked fries, then they went back to holding them under a sad heat lamp. It's funny that a restaurant that prides itself on making each sandwich to order insists on holding their fries too long.

Who gets the fries at Wendy's? Seriously, over the chili? Over the baked potato or the Cesar side salad?
/but your right their fries suck
//I do lover everything else they have though.


I don't eat a Wendy's much anymore. I never liked their full size patties, only the junior meat. (Insert pedo bear joke here) Now junior bacons are more expensive and have less bacon. I used to like the spicy chicken sandwich, but either the quality of the chicken, the quality of the oil, or the quality of the employees has gone down, and it's not that good.
 
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