Posted on 08/29/2015 8:04:06 AM PDT by Rusty0604
The National Labor Relations Board (NLRB) just issued a ruling likely to destroy the franchise business model.
To understand how far-reaching this could be, it should be noted that almost 9 million Americans work at over 780,000 franchised businesses.
From Jiffy Lube to Terminex to Wendy’s, franchises enable many Americans to run their own small businesses without having to design and market everything from scratch. Franchising is a particularly important opportunity for minority entrepreneurs.
Franchises are almost 50 percent more likely to be minority-owned than non-franchised businesses. If this ruling stands, minority Americans won’t get that chance.
The recent ruling will probably force local franchises to give up total control of day-to-day business decisions to their corporate sponsors, turning thousands of investor entrepreneurs who currently own and manage a local business into middle managers in a giant corporate entity.
Until now, the NLRB has always defined an employer as the firm that hires, fires, pays wages, disciplines, promotes, and makes work assignments. That’s just common sense and comports with most Americans’ understanding of whom they work for.
The NRLB is now saying that companies that contract with others firms for services or set quality standards in exchange for brand licensing implicitly influence the other firms’ employees and should be required to bargain collectively with them.
If allowed to stand, this new interpretation will effectively destroy the franchise model of business.
(Excerpt) Read more at dailysignal.com ...
Cue Eddie Murphy.
Expect to see variants of “McDowell’s” opening across the fruited plains...
The Lawless One is here. He just hasn’t been revealed.
There goes the franchise business. Well I guess the democrats need those labor union donations for the upcoming election.
And an even bigger payoff to the big business donors who support this NAZI style government of chosen winners and chosen losers. USA is FOR SALE!
If we follow this train of thought, wouldn't all companies eventually have contacts with the government, thus government could control all wages?
Just a thought.
Mandatory Obamacare, wage and overtime regulations, EEO rules, OSHA rules - all kick in while tax breaks for small business disappear...
Wow. They are effectively allowing workers in a franchise to seek union representation. Look for the major labor unions to begin recruitment efforts.
We’ve chased off heavy industry, now we are going after the service industry. Socialized Industry here we come.
Fewer jobs, worse service, and you won’t be able to get a job unless you know someone.
Also unionization of their workforce.
We are damn lucky there is a businessman running for the White house.
That is actually not too far fetched.
Rule by fiat, political whim and bureaucracy that equals the operation of government in the Soviet Union in its heyday
Say hello to the fully automated fast food restaurant.
In an a tinny female electronic voice:
“You want fries with that?”
“Beep”
All is going according to plan.
Since our government operates more on precedent rather than law, the next administration, no matter the party, will have the same arbitrary powers.
Our forebears didn’t fight and die to establish an elective despotism.
Elections increasingly serve to give the patina of legitimacy to tyranny.
Yes, the Lawless One is here, and he is ascendant.
That was the whole goal of the $15 movement.
I wonder if he will make any comments on this. A lot of his employees are unionized, if he speaks out against it the unions will run with it to turn working people against him.
In twelve different languages.
I don’t think it will have much effect and will probably be repealed by the next administration without much comment or by Congress who will be told that unless it goes away their careers are over. “You may wish to familiarize yourself with Monster.com Mr. Representative.”
New types of organizations may result but I think this will not work out the way they intend.
It is also a great argument for reducing the NRLB’s budget to about 40% of what it is now. Too much mischief being promulgated by this bureau.
I don’t believe that we have ever had an administration so determined to eliminate jobs as this one. I don’t think they are familiar with the low cost of automation of restaurant operations. McDonald’s has had a working robotic model for twenty years or so and the costs of automation have plummeted.
They spent their own money to build, provision and staff their place - surrendered some rights to the front office like location, design, what product to sell and what suppliers to use.
Now they lose workforce control, even though they still have to pay their employees. themselves. Does that sound like a good deal?
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