California’s fast-food workers are once again calling for a minimum wage increase, just four months after their last $4 raise. The workers argue that the previous hike is insufficient to meet the rising cost of living in the state, especially after many workers report that their working hours have been cut following the recent wage increase.
How much more are the California fast-food workers demanding?
The California Fast Food Workers Union (CAFFWU), affiliated with the Service Employees International Union (SEIU), unveiled a new set of demands during the inaugural meeting of the state’s Fast Food Council.
In a statement released by the SEIU to KTLA 5 News, the CAFFWU is asking that wages for workers be increased to $20.70 per hour by Jan. 1, 2025, “to keep up with the rising cost of living.” Before the recent $4 raise brought their minimum hourly pay to $20 last April, the fast-food workers in California were earning $16 per hour.
Alongside the proposed pay increase, the CAFFWU also called for enhanced job security, timely compensation for back pay, consistent work schedules for employees, and a comprehensive investigation into what they describe as widespread “pervasive abuses” within the fast-food sector, including wage theft, harassment, discrimination, and hazardous working conditions.
“As California’s fast-food industry grows, cooks and cashiers are doubling down on their fight across the state to win safe and healthy stores, stable hours, pay that keeps up with inflation, and training to understand their rights on the job,” read the SEIU statement.
How have California fast-food chains coped with the new $20 minimum wage for workers?
According to The New York Post, since California implemented the new $20 minimum wage for fast-food workers in April, nearly 10,000 jobs have been eliminated as struggling franchises attempt to cut labor costs and raise prices to remain viable.
Major chains such as McDonald’s, Burger King, and even the budget-friendly In-N-Out Burger have increased their menu prices to offset the higher wage costs. Many establishments have also reduced employee hours and accelerated their shift toward automation.
Rubio’s California Grill became the first major chain to succumb to the financial pressures of the new law, closing 48 of its nearly 134 locations by the end of May. The San Diego-based company attributed these closures to the “rising cost of doing business” in the state and subsequently filed for bankruptcy in June.
Jot Condie, President and CEO of the California Restaurant Association, which opposed AB 1228, highlighted the dual pressures of escalating rents and food costs on businesses. “When labor costs jump more than 25% overnight, any restaurant business with already-thin margins will be forced to reduce expenses elsewhere,” Condie stated. “They don’t have a lot of options beyond increasing prices, reducing hours of operation, or scaling back the size of their workforce.”
Fast-food operators have echoed the council’s concerns about rising operational costs. An Arby’s franchisee shared with the council, “I have been forced to raise prices. I try to do the best I can. I have taken money out of my own savings to make things work this last quarter. But I don’t know how long I’ll be able to sustain something like that moving forward.”
Although the implementation of the new $20 minimum wage for fast-food workers has already resulted in almost 10,000 job cuts, the SEIU and Newsom’s office noted that thousands of jobs have become available since the pay hike took effect last April.
While it’s not clear whether the request for an additional pay hike will be approved, fast-food employees who are not affected by the recent strings of layoffs in California welcome the new potential pay increase.
“It’s been really good because I can put more food on the table and in my fridge and pay my rent on time which was always a challenge,” said Romualda Alcazar Cruz, a Wendy’s employee in Oakland.