N.L.R.B. Ruling Holds McDonald’s, Not Just Franchisees, Liable for Worker Treatment

The general counsel of the National Labor Relations Board ruled on Tuesday that McDonald’s is jointly responsible for workers at its franchisees’ restaurants, a decision that if upheld would disrupt longtime practices in the fast-food industry and ease the way for unionizing nationwide.

Richard F. Griffin Jr., the labor board’s general counsel, said that of the 181 unfair labor practice complaints filed against McDonald’s and its franchisees over the last 20 months, he found that 43 had merit on such grounds as illegally firing or threatening workers for pro-union activities.

In those cases, Mr. Griffin said he would include McDonald’s as a joint employer, a classification that could hold the fast-food company responsible for actions taken at thousands of its restaurants. Roughly 90 percent of the chain’s restaurants in the United States are franchise operations.

McDonald’s said it would contest the decision, warning that the ruling would affect not only the fast-food industry but businesses like dry cleaners and car dealerships.

The N.L.R.B. ruling is wrong, according to a statement by Heather Smedstad, a senior vice president for McDonald’s, because the company does not determine or co-determine decisions on hiring, wages or other employment matters. “McDonald’s also believes that this decision changes the rules for thousands of small business, and goes against decades of established law,” Ms. Smedstad said.

Throughout the debate to increase the minimum wage to $10.10 an hour, alongside the efforts by fast-food workers and labor advocates to pressure McDonald’s and other restaurant chains to adopt a $15 wage floor, the companies have often said that they don’t set employee wages, franchise owners do. That defense would be weakened considerably by the workers’ push to have them declared joint employers.

http://www.nytimes.com/2014/07/30/bu...ment.html?_r=0