CA: Might Have to Use Take-Out at the Hut If You Ever Want to See Your Pizza

(AP Photo/Reed Saxon, File)

Ah, the law of unintended consequences, also known as “The Clueless, Pandering Democrats Bone Working Stiffs and Business Owners Yet Again Maxim” is fixin’ to strike another educational blow that will be ignored.

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The overwhelming number of lemmings good citizens in California, who elected a legislature and re-elected governor hell-bent on destroying what was left of their great state whilst wringing every last drop of blood out of the few productive folks who were either inexplicably willing to remain or involuntarily trapped there, are about to experience another self-induced convulsion in the economy.

This gem of a pay boost – a $20 hr minimum wage set to go into effect as of April 2024 – is a bit of an outlier. Yes, it’s state law, but it’s not the “state” minimum wage (set to hit $16 shortly). It’s actually two separate categories that had their own minimum wages established in new bills signed by ever oleaginous Gov Gavin Newsom last fall. Thanks to heavy and – with Newsom’s ever present presidential aspirations in mind – effective union influence and lobbying, fast food and health care workers became independent wage classifications in their own right.

Californians in two industries are set to get new minimum wages just for them next year, and that could lead to pay bumps for other workers, too.

Gov. Gavin Newsom this year signed two union-backed bills that will boost fast-food and health care workers’ minimum wages.

California-based fast-food workers for chains with 60 or more locations around the nation will earn at least $20 an hour beginning in April, $4 higher than the overall state minimum wage of $16 that will be effective Jan. 1.

In June, health care workers will earn a minimum of $18, $21 or $23 an hour, depending on what type of facility employs them and where they work.

…The two new laws are expected to trigger pay increases for about 900,000 Californians, some of whom are earning more than minimum wage today.

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The perpetually pandering Randall Flagg-lite CA chief executive has never met a union ring he couldn’t slobber over, and this was no exception.

As a self-proclaimed champion of the little people, he’s actually done a good turn for ee-ville corporations with the fast food bill. It turns out the behemoths of the industry who are franchisors (important distinction here) like Mickey D’s were actually pushing the bill as a trade-off to unions to drop threats of violation action. What it did was hang their franchisees out to dry on the wage hike.

…Keith Miller owns three Subway sandwich shops in Northern California and is spokesperson for the American Association of Franchisees & Dealers, which opposed the fast-food worker legislation. The law passed with support from major fast-food chains, which gained assurances that unions would drop an initiative that would have made the chains liable for their franchises’ labor violations.

Under the law, Miller said, franchisors like McDonald’s or Subway avoid responsibility but franchisees like him will bear the costs of paying higher wages.

Nothing like a neat shiv in the side from your corporate office, huh?

In the meantime, Newsom got to hold the bill up after scribbling on it, smirk for all assembled, and be like, “What? Me worry?”

It’s not his money.

It’s not his job possibly on the line, either. One union rep, while acknowledging the gains are woot for the oppressed patty fry cook, also had a moment of clarity about that worker being replaced by something else. But interestingly enough, she never quite connects it to a union driven wage spiral.

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…Worker advocates and labor leaders are cheering their victories on wages as they strive to improve workers’ lives in other ways.

The unions that advocated for the fast-food and health care minimum wages say their list of priorities is long and includes other concerns such as how artificial intelligence will affect work, housing costs, worker classification and more.

We can talk about leave, minimum wage, etc., but it doesn’t matter if we’re replacing people with robots in the workplace,” said Lorena Gonzalez Fletcher, head of the California Labor Federation.

The only way to keep up, she insists, is to keep upping wages.

…Gonzalez Fletcher said labor is more focused on pushing for improvements in contracts, which she said tends to help raise wages of nonunion workers, too. But she said she continues to support any efforts to raise the state minimum wage. “The only way to keep up with inflation is to increase wages,” she said.

Some of the franchisees soon to be affected by this looming wage burden have come up with a way to “keep up” and have issued a preemptive strike warning – as required by CA state labor regulations.

Pizza Hut franchise owners around the state are dropping their delivery drivers. Come this spring, if you want your slice, you either get in the car, or pay for a delivery service like Uber Eats.

Multiple Pizza Hut franchises in California are planning to lay off delivery drivers as the restaurant chain braces for an increase in the minimum wage for fast food workers next year.

Several Pizza Hut operators filed notices to comply with the Worker Adjustment and Retraining Notification Act saying they were discontinuing their delivery services.

“PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions,” a federal WARN Act notice filed by the fast-food operator with the state’s Employment Development Department said, Business Insider reported.

Another operator, Southern California Pizza Co. also announced layoffs of around 841 drivers across the state. The moves impact Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside and Ventura counties.

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Right now it’s about 1200 jobs gone at these franchises.

“Well, I knew that was coming. All these big corporations they have to make money,” said Scot Ward, owner of Stone Pizza in Roseville.

…”What these businesses are going to do is cut out employees to make up for the money they are losing,” said Ward.

I don’t believe being a pizza delivery driver was ever meant to be a “living wage” type job, but even so, it’s certainly been a boon opportunity for plenty of folks. But with a mandated wage hike of almost 30% for every employee at these establishments? Poof – gone.

Of course, the drivers Fox interviewed are torqued, but it’s not really the owners’ fault in this instance, is it? Why not direct that ire at the unions that did this to you?

Then again, no doubt drivers are probably not that well versed in the background story, and only know that the franchise owner is swimming in cash – like all business owners, right?

I mean, I get it.

Besides – that’s what the state of CA thinks, too. Swimming in cash.

Then everyone involved is really surprised when workers – and, by extension, the state’s economy – really “get” it and good.

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Ed Morrissey 12:40 PM | November 21, 2024
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