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Updates


SEIU Continues Its Assault, This Time On New York Businesses

The Service Employees International Union (SEIU) is not letting up on its assault on the franchising industry. This effort is not based on sound economic theory or even the interests of entry level workers. Rather, it is being driven by a messaging campaign promoted by the self-interested union. The ultimate result won’t be more money for workers, just more money for the SEIU.

In New York, the wage board’s decision to apply a $15 minimum wage mandate only for the fast food industry is just the latest salvo. This wage increase is completely arbitrary and rooted in nothing more than payback for Governor Cuomo’s political supporters. As columnist David Brooks argued recently, the real losers as a result of this decision will be those who are trying to break into the workforce and gain valuable experience. Many workers will lose hours, or even their jobs as a result of this wage hike. Many others will never get a job at all.

The wage hike comes on the heels of the joint employer fight, another pet project for the SEIU. The joint employer standard is designed to protect businesses from unnecessary involvement in labor negotiations or fights involving workplaces in which they do not maintain any direct control. The current standard deems businesses joint employers only when they share direct and immediate control over essential terms and conditions of employment including hiring, firing, discipline, supervision and direction. Franchise companies and brand companies typically have no direct control over the employment practices and policies of their small business partners.

But the National Labor Relations Board, at the behest of the SEIU, has proposed an amorphous indirect control standard be adopted. Almost any economic or contractual relationship could trigger a finding of joint employer status under the proposed new standard. This would essentially turn the franchise model on its head, making corporate entities responsible for the day-to-day operations of small businesses all over the country. It would also remove the autonomy many franchisees currently enjoy and ultimately, put some of them out of business. This isn’t just bad for business, it’s bad for workers.

The SEIU claims to be looking out for the little guy. But it’s clear the union is more motivated by its own bottom line. The franchising industry, meanwhile, provides opportunities for entrepreneurship and growth. As an industry, we have our hands full creating jobs and at the same time, fighting back against these unprecedented attacks.

Date: 2015-07-29

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