(TheProudRepublic.com) – Just months after the state raised their pay from $16 to $20 an hour, fast food workers in California are pushing for another minimum wage increase.
A source reported that the California Fast Food Workers Union, part of the Service Employees International Union (SEIU), presented new demands during the first-ever meeting of the state’s Fast Food Council.
According to a statement from SEIU, the union wants wages to increase to $20.70 per hour by January 1, 2025, “to keep up with the rising cost of living.”
Moreover, they also ask for more job stability, fair payment for back wages, stable schedules, and a thorough investigation into what they describe as widespread “pervasive abuses” in the fast food industry.
These abuses allegedly include wage theft, harassment, discrimination, and unsafe working conditions.
“As California’s fast-food industry grows, cooks and cashiers are doubling down on their fight across the state to win safe and healthy stores, stable hours, pay that keeps up with inflation and training to understand their rights on the job,” SEIU stated.
Additionally, the state’s new $20 minimum wage took effect just four months ago. In that brief time, fast-food restaurants in California have cut nearly 10,000 jobs as struggling franchises try to lower labor costs and raise prices to stay afloat.
Major chains like McDonald’s, Burger King, and even In-N-Out Burger increased their prices to cover the higher wages. Many also reduced employee hours and accelerated their shift toward automation.
Furthermore, Rubio’s California Grill was the first major chain to close locations in response to the new law. By the end of May, the San Diego-based company shut down 48 of its nearly 134 locations and filed for bankruptcy in June, citing the “rising cost of doing business” in California.
Jot Condie, President and CEO of the California Restaurant Association, which opposed AB 1228, said businesses are struggling with rising rents and food costs. “When labor costs jump more than 25% overnight, any restaurant business with already-thin margins will be forced to reduce expenses elsewhere,” she added.
In turn, customers are feeling the impact too. A survey by LendingTree found that 78% of consumers now see fast food as a “luxury” due to the higher prices.
Despite this, SEIU and Newsom’s office point to data showing the industry added thousands of jobs after the law took effect on April 1. Employees not affected by layoffs have welcomed the new push for a pay increase.
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