XDCX
08-07-2014, 11:41 AM
Last week the National Labor Relations Board ruled that the corporate parent of McDonald's is liable for employment decisions/actions made by their franchisees.
Here's an excerpt from a news report (http://www.chicagotribune.com/news/opinion/editorials/ct-nlrb-mcdonald-franchise-edit-0805-jm-20140805-story.html) from the Chicago Tribune: The ruling by the NLRB's general counsel says that McDonald's can be held liable for the employment decisions made in its franchised outlets, which number some 13,000 in this country. So if a rogue franchisee in Sasquatch Hollow violates the law on overtime or wages, the Oak Brook-based corporation can face sanctions.
I've always believed that the NLRB has a pro-union agenda and I question why the agency is even relevant any longer. That said, the ruling is important and now McDonald's will have to fight the ruling using an appeals process.
As we've discussed in many other threads, I believe the McDonald's franchise system is what many (perhaps most) OEMs dream of. Essentially the franchisor has complete control of the franchisee but doesn't have to deal with the day to day operations.
I feel confident that McDonald's will get the NLRB's decision overturned but I doubt it will the last time the Federal Government tries to interject itself into matters that should be left to the market.
Here's an excerpt from a news report (http://www.chicagotribune.com/news/opinion/editorials/ct-nlrb-mcdonald-franchise-edit-0805-jm-20140805-story.html) from the Chicago Tribune: The ruling by the NLRB's general counsel says that McDonald's can be held liable for the employment decisions made in its franchised outlets, which number some 13,000 in this country. So if a rogue franchisee in Sasquatch Hollow violates the law on overtime or wages, the Oak Brook-based corporation can face sanctions.
I've always believed that the NLRB has a pro-union agenda and I question why the agency is even relevant any longer. That said, the ruling is important and now McDonald's will have to fight the ruling using an appeals process.
As we've discussed in many other threads, I believe the McDonald's franchise system is what many (perhaps most) OEMs dream of. Essentially the franchisor has complete control of the franchisee but doesn't have to deal with the day to day operations.
I feel confident that McDonald's will get the NLRB's decision overturned but I doubt it will the last time the Federal Government tries to interject itself into matters that should be left to the market.