NLRB ruling on McDonald’s franchisees ignites firestorm - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

NLRB ruling on McDonald’s franchisees ignites firestorm
Started:July 30th, 2014 (08:42 PM) by kbit Views / Replies:210 / 0
Last Reply:July 30th, 2014 (08:42 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

NLRB ruling on McDonald’s franchisees ignites firestorm

Old July 30th, 2014, 08:42 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

NLRB ruling on McDonald’s franchisees ignites firestorm

The National Labor Relations Board’s decision that McDonald’s MCD -0.76% can be counted as a joint employer with its franchisees in labor complaints has ignited a firestorm.

The ruling could cast a shadow across a wide variety of industries and companies that rely on franchise models.

“It would have a widespread, seismic impact on all segments of the franchise industry,” said Stephen Caldeira, president and CEO of International Franchise Association, in an interview. “Franchisees are independently owned. They have the responsibility to hire and fire. They process their own payrolls, pay their own taxes and have their own employer taxpayer ID. If the decision sticks, small business owners will lose control of their business and the equity they work so hard for. It’ll have a chilling effect on job creation.”

The IFA represents 1,320 franchiser members — including such non-restaurant businesses as 7-11, 1-800 Flowers FLWS , RadioShack RSH -4.79% , and Jiffy Lube, as well as 14,000 individual franchisee members.

The association is expecting franchisees to increase 1.7% in 2014 to 770,069 establishments, based on research carried out by IHS Global Insight. That will mark a third straight year of growth, after three years of declines. It expects franchisees to employ 8.55 million people by year-end, with the gross domestic product of the franchise sector expected to grow 4.6% to $494 billion, or 3.1% of U.S. GDP, unadjusted for inflation.

“This decision to allow unfair labor practice complaints to allege that McDonald’s is a joint employer with its franchisees is wrong,” said Heather Smedstad, McDonald USA’s senior vice president of human resources. “This decision changes the rules for thousands of small businesses, and goes against decades of established law regarding the franchise model in the United States. McDonald’s, as well as every other company involved in franchising, relies on these existing rules to run successful businesses as part of a system that every day creates significant employment, entrepreneurial and economic opportunities across the country.”

The NLRB didn’t respond to a MarketWatch request seeking comment. Nor did some publicly traded companies that have franchise businesses. These include RadioShack, 1-800 Flowers and Starbucks SBUX +0.00% .

While the Starbucks namesake brand has franchisees only on a limited basis and is not accepting new applications, its Seattle’s Best Coffee unit still offers franchising.

Other trade groups also weighed in:

The National Retail Federation described the NLRB’s decision as “outrageous.”

“It is just further evidence that the NLRB has lost all credibility as a government agency established to protect workers and is now just a government agency that serves as an adjunct for organized labor, which has fought for this decision for a number of years as a means to more easily unionize entire companies and industries,” said NRF’s senior vice president of government relations, David French.

The National Restaurant Association said the decision will have “dire consequences” to franchisees, franchise employees, and the economy as a whole.

“By making franchisors liable for their franchisees’ employment practices and redefining individually owned franchises as ‘big business,’ NLRB would disrupt the franchisor/franchisee relationship and impede entrepreneurship and restaurants’ ability to continue to create jobs, particularly in an increasingly challenging economic environment. The net effect is counterproductive,” said Angelo Amador, VP of Labor and Workforce Policy.

NLRB ruling on McDonald?s franchisees ignites firestorm - Behind the Storefront - MarketWatch

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > NLRB ruling on McDonald’s franchisees ignites firestorm

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Corey Rosenbloom: Tips, Tactics, and Real Trades: Trading Intraday Trend Reversals

Elite only

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Apple, Samsung Spar in Court, Ruling to Come Quick Summary News and Current Events 0 December 6th, 2012 09:30 PM
Obamacare: What's Next After the Supreme Court Ruling? Quick Summary News and Current Events 0 June 27th, 2012 04:30 PM
Friday: Investors Will Watch GE, McDonald's & Europe Quick Summary News and Current Events 0 April 19th, 2012 11:20 PM
Bernanke Twists Down Yields for McDonald's Record Low Rate kbit News and Current Events 0 February 6th, 2012 02:56 PM
McDonald's Profit Beat Views, but Shares Fall Quick Summary News and Current Events 0 July 23rd, 2010 09:00 AM

All times are GMT -4. The time now is 08:40 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-20 in 0.08 seconds with 19 queries on phoenix via your IP