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Voters Will Determine Fate of Fast-Food Workers Pay Raise

Last September, Gov. Gavin Newsom signed Assembly Bill (AB) 257 into law. Supporters of the legislation, authored by Assemblymember Chris Holden (D-Pasadena), hailed it for its promise to provide a minimum wage and improve working conditions for fast food workers.

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Fast food workers marching in front of the State Capitol Aug. 17, 2022, Sacramento, CA. CBM file photo
Fast food workers marching in front of the State Capitol Aug. 17, 2022, Sacramento, CA. CBM file photo.

By Edward Henderson
California Black Media

Last September, Gov. Gavin Newsom signed Assembly Bill (AB) 257 into law. Supporters of the legislation, authored by Assemblymember Chris Holden (D-Pasadena), hailed it for its promise to provide a minimum wage and improve working conditions for fast food workers.

But late last month, the future of AB 257 — also known as “the Fast Act” or “the Fast Food Recovery Act” — came into question. California Secretary of State Shirley N. Weber’s office announced that a referendum seeking to overturn the law had gathered enough signatures to be placed on the November 2024 ballot.

“To qualify for the ballot,” the Secretary of State’s office wrote, “the referendum needed 623,212 valid petition signatures, which is equal to 5% of the total votes cast for governor in the November 2018 general election.

When AB 257 passed last year along party lines, it authorized the establishment of the Fast-Food Accountability and Standards Recovery Act or FAST Recovery Act. The bill established the Fast Food Council within the Department of Industrial Relations, to be comprised of 10 members appointed by the governor, the speaker of the Assembly, and the Senate Rules Committee.

According to the bill’s language, the purpose of the council is to establish “sector-wide minimum standards on wages (up to $22/hour in 2023 with capped annual increases), working hours, and other working conditions related to the health, safety, and welfare of, and supplying the necessary cost of proper living to, fast food restaurant workers, as well as effecting interagency coordination and prompt agency responses in this regard.” The act prohibits retaliation against fast-food workers for making certain workplace complaints.

Opponents of AB 257, led by a coalition called Save Local Restaurants, gathered more than 1 million signatures on a referendum petition. About 712,000 of them were deemed valid by Weber’s office, thus putting the referendum on the Nov. 5, 2024, ballot.

The Los Angeles Times published an article telling the stories of 14 voters who say they were misled by canvassers collecting signatures for the referendum. Many of them said that information was withheld from them about the nature of the campaign and were simply told it would support fast food workers.

But the laws’ opponents insist that their challenge to AB 257 is widely supported.

“California voters have made clear that they want a say on whether they must shoulder the burden of higher prices and job losses caused by the FAST Act,” said Save Local Restaurants in their press release. “This legislation singles out the quick service restaurant industry by establishing an unelected council to control labor policy, which would cause a sharp increase in food costs and push many Californians, particularly in disenfranchised communities, to the breaking point.”

The referendum means that the law is suspended until the November 2024 election when voters will decide whether to repeal it.

Holden, who is a former franchise owner said he believes AB 257 would protect both owners and employees — if those opposing the law allow it to work.

“Given, the final version of the bill removed many expressed concerns of subpoena power and joint-liability. While, strengthening the oversight role of the Legislature, providing for equal Sector Council representation and adding a sunset clause to evaluate effectiveness.  As a result, this first in the nation worker protection bill is worthy to become law in California,” Holden said when Newsom signed the law last year.

Labor advocates believe the legislation could create a precedent in the U.S for negotiating workplace standards, which would, in turn, revolutionize the collective bargaining process.

However, the coalition of businesses opposing the law feel it would leave businesses with higher labor costs and hiked-up food prices.

According to the nonpartisan Fair Political Practices Commission, fast-food corporations and business trade groups including In-N-Out, Chipotle, Chick-Fil-A, McDonald’s, Starbucks and the National Restaurant Association donated millions to support the referendum effort.

“The FAST Act is bad policy that threatens not only quick service restaurants, but the independents operating in the same neighborhoods,” National Restaurant Association Executive Vice President for Public Affairs Sean Kennedy said in a press release. “There is no way that the regulations passed by this unelected council would not damage the state’s restaurant industry, harm its workforce, and leave diners paying the bill.

“We’re pleased that Californians will get the chance to exercise their constitutional right to vote on this law and will continue to support the operators, small business owners, and workers that make the restaurant industry so important to our customers’ lives.”

Business

Google’s New Deal with California Lawmakers and Publishers Will Fund Newsrooms, Explore AI

Gov. Gavin Newsom, California lawmakers and some newspaper publishers last week finalized a $172 million deal with tech giant Google to support local news outlets and artificial intelligence innovation. This deal, the first of its kind in the nation, aims to invest in local journalism statewide over the next five years. However, the initiative is different from a bill proposed by two legislators, news publishers and media employee unions requiring tech giants Google and Meta to split a percentage of ad revenue generated from news stories with publishers and media outlets.

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By Bo Tefu, California Black Media

Gov. Gavin Newsom, California lawmakers and some newspaper publishers last week finalized a $172 million deal with tech giant Google to support local news outlets and artificial intelligence innovation.

This deal, the first of its kind in the nation, aims to invest in local journalism statewide over the next five years. However, the initiative is different from a bill proposed by two legislators, news publishers and media employee unions requiring tech giants Google and Meta to split a percentage of ad revenue generated from news stories with publishers and media outlets. Under this new deal, Google will commit $55 million over five years into a new fund administered by the University of California, Berkeley to distribute to local newsrooms. In this partnership, the State is expected to provide $70 over five years toward this initiative. Google also has to pay a lump sum of $10 million annually toward existing grant programs that fund local newsrooms.

The State Legislature and the governor will have to approve the state funds each year. Google has agreed to invest an additional $12.5 million each year in an artificial intelligence program. However, labor advocates are concerned about the threat of job losses as a result of AI being used in newsrooms.

Julie Makinen, board chairperson of the California News Publishers Association, acknowledged that the deal is a sign of progress.

“This is a first step toward what we hope will become a comprehensive program to sustain local news in the long term, and we will push to see it grow in future years,” said Makinen.

However, the deal is “not what we had hoped for when set out, but it is a start and it will begin to provide some help to newsrooms across the state,” she said.

Regina Brown Wilson, Executive Director of California Black Media, said the deal is a commendable first step that beats the alternative: litigation, legislation or Google walking from the deal altogether or getting nothing.

“This kind of public-private partnership is unprecedented. California is leading the way by investing in protecting the press and sustaining quality journalism in our state,” said Brown Wilson. “This fund will help news outlets adapt to a changing landscape and provide some relief. This is especially true for ethnic and community media journalists who have strong connections to their communities.”

Although the state partnered with media outlets and publishers to secure the multi-year deal, unions advocating for media workers argued that the news companies and lawmakers were settling for too little.

Sen. Mike McGuire (D-Healdsburg) proposed a bill earlier this year that aimed to hold tech companies accountable for money they made off news articles. But big tech companies pushed back on bills that tried to force them to share profits with media companies.

McGuire continues to back efforts that require tech companies to pay media outlets to help save jobs in the news industry. He argued that this new deal, “lacks sufficient funding for newspapers and local media, and doesn’t fully address the inequities facing the industry.”

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Oakland Post: Week of September 25 – October 1, 2024

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Oakland Post: Week of September 18 – 24, 2024

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