An Illustration of Minimum Wage Law That We Support
Joe Erlinger, President of McDonald’s USA, and Paul Hendel, a McDonald’s Owner/Operator with locations in New York, sent the following statement to the U.S. System:
The System has spent a lot of time lately discussing why the franchising model is so important and why we must all take action to protect it on behalf of the neighborhoods, people we serve, and the employees and clients we service.
We’ve taken significant measures to more aggressively advocate for what we believe in and what we stand for as Our System deals with an increasingly complex regulatory environment that attempts to undermine this essential model.
We must use a variety of strategies as we continue to negotiate this complex political landscape. We must be clear about our beliefs and the distinctive way we use the franchise model to help the local communities.
This occasionally necessitates vehemently opposing local or state legislation with possible national ramifications. It also encourages us to defend laws that we think are beneficial to our nation’s citizens and economy.
Even though many states want to determine who “wins” and “loses,” we are aware that legislation that levels the playing field is eventually beneficial for our citizens, our communities, and all three pillars.
We applaud legislation that promotes franchised businesses and small business owners. We have championed policies that are in line with our values and do not restrict our ability to interact with and serve the requirements of employees, and we will keep doing so.
Governor Kathy Hochul has provided New York State with an excellent example of legislation.
Contrary to what many people might believe or purposefully portray, the McDonald’s System is not against any plan for a minimum wage. In fact, for two main reasons, Gov. Hochul’s minimum wage proposal is precisely the kind of legislation we should all support.
First off, the proposed legislation benefits all businesses and almost all workers, not just those who work in occupations that are the targets of special interest groups or that are burdened by an overabundance of regulation.
Every company competes for employees when the hourly wage standard is fair and substantial.
Through a strong emphasis on our people methods in this situation, McDonald’s can triumph. In order to recruit and keep the finest workers, a lot of McDonald’s owner-operators in the state of New York have already increased their pay above the legal minimum of $15.
It’s also the reason why McDonald’s and our New York owner-operators invested over $15 million in tuition aid through Archways to Opportunity, assisting over 4,250 restaurant workers in the state in pursuing their educations and fulfilling their aspirations.
Over 82,500 more people can now attend college or secondary school thanks to the more than $185 million in tuition assistance that Archways to Opportunity has provided nationwide.
Second, the proposed legislation places an annual limit on future wage increases and links them to the primary inflation gauge, the Consumer Price Index (CPI).
With a phased approach that establishes clear expectations for years to come, tying further increases to the CPI makes the effect of implementation more manageable – whether for a small business owner or a large company.
Since everyone’s prices are based on the same “floor,” business owners can consider how one of their largest investments—employees—will probably increase over time.
Business owners will be able to keep making investments in the towns and cities where they work thanks to this knowledge.
More than 33,000 restaurant employment are supported by the McDonald’s brand in New York, spread across about 600 restaurants. There is a great deal of potential for effect.
While supporting laws that raise expenses for our companies is not something we do lightly or overnight, we think that using our combined influence as a System to support the right legislation has the potential to forge a promising future.
We applaud Governor Hochul for creating a model that the rest of the world can imitate and that the complete McDonald’s System can support as a franchisor and franchisee, respectively.