Press "Enter" to skip to content

Langer Pushes SB 137 to Protect Low Wages at Hardee’s and McDonald’s

Among the anti-labor measures big businesses are pushing Congress to pass is a repeal of the National Labor Relations Board’s joint employer standard. In August 2015, the NLRB ruled that “companies can be held responsible for labor violations committed by their contractors.” That ruling chafes failed Labor nominee Andy Puzder and other fast-food CEOs, who want to dodge responsibility for any labor violations committed by their franchisees.

So where does one go to try out new anti-labor legislation? South Dakota! Senator Kris Langer (R-25/Dell Rapids) sponsored Senate Bill 137, which adds one sentence to South Dakota law to undercut the NLRB’s joint employer liability rule:

Notwithstanding any other provisions of law or any voluntary agreement between the United States Department of Labor and a franchisor, a franchisee or an employee of a franchisee is not considered an employee of the franchisor.

SB 137 and a similar national measure would make it harder for labor unions to fight for better wages for workers at Hardee’s, McDonald’s, and other franchises:

It is possible for workers to unionize within their franchise against the respective franchise owners (the franchisee), but generally, this is not as effective for multiple reasons: (1) the strategies the SEIU uses are not as effective with small business owners; (2) with over 3,000 independently owned franchises, the cost of organizing each individual unit generally outweighs the benefits—there are over 3,000 independently owned franchises, generally making the cost of organizing each individual unit outweigh the benefits; and (3) because McDonald’s exerts so much control over its franchisees, company protocol constrains management at local franchises and leaves them without discretion to change their employees’ wages and benefits. The SEIU stated that a broader definition of “joint employer” will make it easier to organize employees of franchises into unions [Alisa Pinarbasi, “Stop Hamburglaring Our Wages: The Right of Franchise Employees to Union Representation,” Pacific Law Review, 2015, Vol. 47, p. 141].

The International Franchise Association joined the South Dakota Retailers to lobby for SB 137. Only four Democrats in the Senate, including pro-labor and economics professor Reynold Nesiba, voted against SB 137, which sailed through the House and is on its way to the Governor’s desk.

Keep workers weak, keep wages low… and we wonder why our tax revenues are anemic and our workforce so depleted.

8 Comments

  1. Porter Lansing 2017-02-27 09:34

    WORKERS RESIST!! Only through groups of like minded and like directed citizens will we MAKE USA GREAT FOR WORKERS, AGAIN. *Organize a Union – It’s Your Right
    ~ Anyone who doesn’t speak out when they have an audience is complacent in the present creeping tyranny.

  2. Darrell Reifenrath 2017-02-27 11:15

    After listening to our delegation complain about loss of revenue I mentioned that low wages were part of the problem. Wal-Mart, fast food joints and others who pay low wages are in fact subsidized by taxpayers when these workers receive government services. They only said something like people need money in order to spend it Duh.

  3. Steve P 2017-02-27 11:47

    If you want to make more money then do something about it. Unionizing a fast food job is laughable.

    Do any of you look at yourselves and consider economics? Consider bettering yourself and working to make your life better? Rather than government solutions or Unions that are out of touch and not realistic in the 21st century? Come on.

    But alas, Union away at McD’s. Let’s get burgers upwards of the prices you see at McD’s by the Grand Canyon. That makes sense.

  4. jerry 2017-02-27 13:14

    Inquiring minds want to know about those prices Mr. P, how much are they? What I do know is that Mickey D’s pays 10 bucks and hour to start there so do tell the price.

    Second, why would you have that in Arizona when you can have great Mexican chow from damn near anyplace? If you are gonna have a gut burger why not have some taste with it?

  5. Drey Samuelson 2017-02-28 03:39

    My answer to about anything that the Legislature does these days is referendum!

  6. Mark Winegar 2017-02-28 06:46

    Please tell the Governor to VETO SB 137.

  7. Darin Larson 2017-02-28 07:46

    Steve P rails against government intervention in the marketplace in favor of unions while government is intervening in the marketplace against unions. While Republicans pass laws weakening unions, Steve P says that unions are passe’. Republicans have no problem regulating and making unions impractical while pointing to the decline in unions as proof of their irrelevancy. To top off their hypocritical pyramid, Republicans decry low wages and suggest everyone should just get better jobs.

  8. Cory Allen Heidelberger Post author | 2017-02-28 08:21

    Workers have every right work harder to make their lives better (something about “the pursuit of happiness). Why prevent them from also working harder together through unions and government to make their lives better?

    Remember, unions and government are not separate, outside entities. Unions are workers, and government is us.

Comments are closed.