One Year In: Insights from California’s Fast Food Council – Key Developments, Hired Staff, and What’s Next

By Jeanne Kuang

California started a big project last year to improve working conditions for over 500,000 fast food workers. However, the council assigned to oversee this effort has been slow to make real progress. Their members include business owners, workers, and union reps. Recently, they decided to look at a possible cost-of-living adjustment to the $20 minimum wage for fast food workers, which began last April. They plan to discuss whether to raise this wage by 3.5% or keep it in line with last year’s inflation rate, but no vote has been scheduled yet.

A lot of time has been spent just figuring out how to have these meetings effectively. The council chair, Nick Hardeman, described the process as similar to starting a new agency from scratch. This past year has been focused on hiring staff and creating guidelines for decision-making, which has taken longer than expected.

In 2021, the Service Employees International Union suggested a council system inspired by European models. This new system would allow fast food workers and business owners to negotiate wages and working conditions directly. After approval from the state’s leaders, fast food companies spent millions trying to overturn this law, but a compromise was reached. It set a minimum wage of $20 for fast food workers in chains with at least 60 locations across the country.

The council is meant to balance the interests of workers and business owners, but most of the six meetings held since March have mainly featured debates about what topics to discuss. Workers have voiced concerns about wage theft, reduced hours, and the rising cost of living. Despite the upward adjustment, $20 an hour is still below what many Californians need to live comfortably.

A recent study found that, since the wage increase started in April, about 10,000 fast food jobs in California disappeared by June 2024. Another study from UC Berkeley challenged these findings, stating that restaurant job losses had not drastically changed due to the wage hike. They reported that overall, the wage increase had minimal effect on jobs and only led to a small rise in menu prices.

Adding to the complexity of this situation, some franchise owners have pushed back against future wage hikes, citing the potential for restaurant closures and layoffs as they struggle to handle the costs. During discussions, they have often shared their personal stories, emphasizing the hard work it takes to run a small franchise.

While the council was established to support more equitable discussion and action, some key players, like representatives from McDonald’s and Burger King, have mostly stayed out of the meetings. These brands initially fought against more ambitious proposals but are now not engaging directly despite having significant influence on the industry.

Franchise owner Rich Reinis has suggested the council address other urgent issues affecting workers, such as the recent wildfires in Los Angeles or fears surrounding immigration enforcement. Yet, some council members, like Maria Maldonado from the California Fast Food Workers Union, insist that the focus must remain on the cost-of-living adjustments for workers.

There’s been a noticeable delay in scheduling discussions with state agencies meant to tackle complaints from fast food workers. For some, like Rich Tieu, a McDonald’s owner, the slow pace is welcome, allowing for thoughtful dialogue. However, many workers, including college student Marina Orozco, are anxious for change. Orozco has seen her hours drop and is hoping for a wage increase that would help her manage rising rent and tuition costs.

While there’s a learning curve in this new process, Marina feels it’s important that workers finally have the chance to express their concerns and ideas directly to their employers.

This article was originally published by CalMatters.

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