Income inequality has helped create the major political schisms between progressives and conservatives in this nation. It’s not the only reason: offshoring due to globalization destroying many domestic jobs, Big Business hiring lobbyists who get laws passed that favor corporate bosses, the Milton Friedman-Ronald Reagan tax cuts to the rich favoring shareholders over workers, to name a few.
The source for this editorial comes from the Center for Public Integrity in an article written by Alexia Fernandez Campbell, entitled, “Millions of Low-paid Workers Will Benefit from this Obscure New Policy”: Nov. 17, 2023.
Before writing this column, I checked its bias in mediabiasfactcheck.com. Here’s what I found:
“Overall, we rate the Center for Public Integrity (CPI) left-center biased based on story selection and advocacy that favors mostly liberal positions. We also rate them high for factual reporting due to proper sourcing and a clean fact check record.”
I suggest you follow the same practice when you read your sources of news.
Campbell’s article placed the blame for income inequality squarely on big corporations and the need for unions to check big corporations’ power. “Fast food employees, hotel housekeepers and millions of franchise workers are among those expected to benefit from a wonky new federal rule that will make it easier for them to form labor unions.”
She focuses on McDonald’s as an example of how the new makeup of the National Labor Relations Board policy that now holds a majority of Democrats has changed its standard about granting the right of labor unions to organize.
The NLRB changed its policy in deciding whether two companies are considered joint employers.
Under the previous president’s appointments, the NLRB was more selective when deciding whether two companies were considered joint employers. This allowed both employers to pass the buck of responsibility to the other. In the case of McDonalds, there is the corporation, and then there are franchises. For years McDonald’s has been successfully able to avoid accountability.
Passed last October, the new rule states that corporations are required to allow for the formation of unions “if it directly or indirectly controls any essential working condition: wages, work schedules, job assignments, disciplinary action, job supervision, hiring and firing and workplace safety conditions.” Previously, only the companies with direct control were considered joint employers.
Companies like Amazon are likely to have to negotiate with truck drivers although the drivers are employees of independent trucking companies. The same applies to cafeteria workers and janitorial staff.
Of, course, both big business and franchises were not happy with this rule change. Over 13,000 public comments were submitted to the proposed rule changes in 2022.
McDonald’s controls nearly every part of a job, even when the restaurant is owned by a franchise. In one restaurant, ownership changed six times. Each time the workers were required to follow corporate rules, even though they lost seniority and access to health care insurance each time there was an ownership change.
McDonald’s complained that the new rule will “destroy the franchise model and devastate small business owners who run their own restaurants.” About 95% of McDonald’s restaurants are privately owned—according to McDonalds.
Most restaurant, retail outlets, and hotel staff work for minimum wage.
If these jobs were unionized, workers would earn 10-15% higher wages than non-union workers according to a Department of the Treasury economist. A lawsuit has been filed in Texas by the U.S. Chamber of Commerce, but the rule was in force during the Obama administration.
This new rule will encourage the unionization of the lowest paying jobs, thus forcing corporations to cut the income equality wage gap between upper management and rank-and-file employees. More than 8 million workers are employed by franchises and they have the lowest union membership rates—3.6% in 2022.
The new/old rule went into effect on Dec. 26, 2023. Expect more unionization movements in U.S. franchises: restaurants, retail, and hotels.
The Biden administration is trying to bring more balance to worker rights. Having been a member of a union for more than 30 years, I know that unions can be selfish, greedy, and stupid. But the same can be said for corporate leadership.
There are no easy answers, just struggles that create checks and balances. Without each group having power, abuse such as wage theft, sexual harassment, and discrimination are likely to flourish. There is always a tug-and-pull between unions and management. Be prepared for more conflict as workers unionize.
