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article imageMcDonald's loses crucial labor ruling

By Walter McDaniel     Jul 30, 2014 in Business
New York - For many years McDonald's was able to avoid many cases and claims by putting responsibility on the franchisee. After a ruling they are now known as a joint employer of workers at franchises, which means they have many more responsibilities for workers.
After seeing 181 unfair labor practice complaints filed in New York by the Fast Food Workers Committee, city officials paid attention. Where protests on wages had little effect the government has stepped in. McDonald's, not their franchisees, will now be liable for many worker claims.
As far as the practice of moving responsibility to franchisees this is a common practice in business. Since in many legal systems a franchise is a separate legal entity this is simple to do and quite effective.
Major financial sites such as Fortune have examined the fact that McDonald's pays workers very low wages. Even around the globe McDonald's has received large amounts of negative press for their pay packages.
McDonald's has promised to appeal the ruling and if overturned the obligations will go back to franchise owners. Officially McDonald's promotes worker training, education and a balanced life in a series of promotional campaigns. Factually they do offer some scholarships through their RMCH Scholars program.
Officials also help workers get government assistance in the form of food stamps and writing plans that suggest getting a second job. As far as their stance on the minimum wage they base it on the local area and America has traditionally paid very low wages to fast food workers.
Even if the ruling is overturned McDonald's now has to deal with a swathe of consumer groups and movements such as "Low Pay is Not OK."
More about Mcdonald's, Labor, Minimum wage, worker's rights
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