The Feds Could Kill Off The Entire Franchise System, Not Just McDonald's

Forbes ^ | 08/05/2014 | Tim Worstall

[SeekAndFind]

The National Labor Relations Board (NLRB) made a very strange decision last week to rule that McDonald's MCD -0.23% the corporation, was a joint employer of the staff in the franchised restaurants. It was, of course, at the urging of those labour activists who would like to union organise in the sector.

Dealing with one national company is obviously going to be easier than dealing with thousands of independent business owners. There’s a number of problems with this decision ranging from the way that it overturns what has long thought to be settled law, to it obviating already signed contracts but perhaps the greatest problem is that it calls into question the entire validity of the franchise system.

The CEO of CKE Restaurants (Hardee’s and Carl Jr.’s) has a good piece in the WSJ which points to one very large problem in an economic sense with this decision:

"Imagine the upheaval in the fast-food industry if tens of thousands of restaurants accustomed to operating independently suddenly were forced to work hand in hand with franchisers on every employment-related decision.

Franchisers would have to review countless job applications at restaurants across the country, while consulting on compensation structures and bonus plans at individual restaurants. Franchisers would also have to monitor the franchisees’ workplace and ensure that employees were taking required rest breaks, being compensated for overtime and complying with both federal labor law and the labor laws of each state in which they do business. The companies would also need to administer or dictate employee training, and increase restaurant staffing levels as they, rather than their franchisees, deemed necessary."

And, since franchisers are compensated based on top-line sales, not franchisees’ profitability, they would have little economic incentive to control labor costs. That would hamstring franchisees, endangering their businesses.

[tcrlaf]

One large group of employees is easier to politically manipulate, and Union “organize”, than 2,000 separate groups of 30-50.

Remember, these aren’t Democrats, anymore, they are radical academic Socialists.
You have to think about things like they do.

[Patton@Bastogne]

.


Kill the Kulaks ...


According to the political theory of Marxism–Leninism of the early 20th century, the kulaks were class enemies of the poorer peasants.[3]

Vladimir Ilyich Lenin described them as "bloodsuckers, vampires, plunderers of the people and profiteers, who fatten on famine.”[4][5]

Marxism–Leninism had intended a revolution to liberate poor peasants and farm laborers alongside the proletariat (urban and industrial workers).

In addition, the planned economy of Soviet Bolshevism required the collectivisation of farms and land to allow industrialisation or conversion to large-scale agricultural production.

In practice, government officials violently seized kulak farms and murdered resisters;[3][6] others were deported to labor camps.

Wikipaedia.


.

[Biggirl]

Nothing surprises me anymore.

[Sacajaweau]

http://article.wn.com/view/2014/08/04/NLRB_Officials_Ratify_Agency_Actions_Taken_During_Period_Whe/

[SMARTY]

I love the way Liberals pursue their BS agenda AS IF there’s a single successful, stable and prosperous Socialist system anywhere on this earth they can point to as an example for us!!

[Vaquero]

Marxists! Might as well be Marx, Stalin, Mao or Castro.

[Mr. Jeeves]

The Feds' goal is to gradually kill off every business that cannot be directly controlled through a corporatist partnership, such as the ones they currently have established with GM, GE, and the like. Big monopolist entities with unionized workforces and fully staffed HR departments acting as arms of HHS and ready to impose the latest Federal whim on employees at any time - that's what they like. Bonus points if the entity makes the 'right' contributions at election time.

Smaller companies who don't play the game as well, well, their time is already up. By definition, they are racist, sexist, homophobic, Tea Party nuts - so who cares what happens to them?

[2ndDivisionVet]

Robot hamburger factory makes 360 Gourmet Burgers every hour...
http://www.freerepublic.com/focus/f-bloggers/3100817/posts

[a fool in paradise]

Disenfranchised franchises PING

[mountainlion]

The totalitarians will not kill the fast food business as it would really rile up the young base as it would take away their jobs and their place to eat.

[apillar]

It will be smacked down by the federal courts just like all the other pro-union law changes (backdoor card check, snap elections, union poster requirements) out of Obama’s NLRB have been. The fact of the matter is the NLRB charter gives it very little real power and any meaningful changes have to come through congress.

[glorgau]

> they are radical academic Socialists.

They are Facist Nazis.

[magellan]

One large group of employees is easier to politically manipulate, and Union “organize”, than 2,000 separate groups of 30-50.

True.

Remember, these aren’t Democrats, anymore, they are radical academic Socialists.

Actually, the Democrats have become fascists. They realize either government ownership is not possible, and consolidating businesses into very large, easy to control, organizations is best, or they believe the fastest path to government ownership is first to consolidate under one large organization, then nationalize it.

Remember, ObamaCare destroys small insurance brokers in favor of large employer based or exchange based systems, smal insurance companies in favor of giant ones, small medical device companies in favor of large pharmaceutical companies, and small doctor owned hospitals in favor of large, Kaiser like entities.

The single biggest change in the Democrat Party since McGovern has been the wholesale embrace of the fascist corporate sate.

[Flag_This]

"The totalitarians will not kill the fast food business as it would really rile up the young illegal latino base as it would take away their jobs and their place to eat."

[Maceman]

This would effect virtually every brand name hotel in the U.S., since the majority of individual branded hotels are franchises.

[SeekAndFind]

RE: Robot hamburger factory makes 360 Gourmet Burgers every hour...

_________________

That’s nice, what do they have for franchises like Jiffy Lube, Jan Pro Cleaners, and Liberty Tax Services?

[Vigilanteman]

Remember, these aren’t Democrats, anymore, they are radical academic Socialists.

Remember the last radical academic socialist who was in charge of a country?

His name was Pol Pot.

[RIghtwardHo]

Franchising is such a specialized area of the law. I had a friend who did only that. Made me wanna blow my brains out every time he discussed it. It’s like a combination of contract law and voodoo.

[Red Badger]

Automated robots are the answer. Minimal number of employees, no calling in sick or late, no human need touch the food..................