Coalition of Franchisee Associations

August 31, 2022

Random California Thoughts

California as a Trendsetter  - I stand by my statement that just because a trend starts in California no longer means it will become a global trend.

From the day I heard my first Beach Boys song I knew California was the place I wanted to be and thanks to Fred Turner's push to build the McOpCo base by buying out Owner/Operators California was where I ended up.

And those indeed were the days when most innovation began in the western USA. I can't pick a date or even a decade when things changed, but today, in California, little is cutting edge. 

I could make a long list, but one will suffice. Last week the California Air Resources Board announced that only electric cars will be sold in California after 2035.

Today, the Independent System Operator (ISO -the grid operator) asked the California public to avoid charging their electric vehicles over the long, hot week to reduce the strain on the grid. Is the ISO rebuilding the grid for the future? Nope, they are spending that money decommissioning nuclear power plants.

That idiocy applies to most things that happen in California, and things will get a lot worse before they get better. Sad to say.

Speaking of California government - Having passed both houses of the California legislature AB 257 is on the desk of Governor Gavin Newsom. He has until the end of September to sign or not sign. This will be fun to watch. Newsome has big plans to run to POTUS in 2024, and he has to keep everybody happy.

On one hand, he has to worry about organized labor's support, and this is a very important legislative success for the unions.

On the other hand, he has national ambitions, and he needs to have a good rep with the global business community. Doing further damage to the California economy is not the road to the White House.

TV talking heads say that our fall electoral campaigns don't really start until after Labor Day. That means we will be full steam into the 2024 Presidential campaign two years from next week and Newsom intends to be a player in that battle. AB 257 could be a major factor in his success or failure. 

Speaking of POMCDUSA - Today's letter from Mr. McPres expresses a lack of understanding or some bewilderment concerning AB 257. That may be clever writing on his part (or on the part of the people who do his writing), but there's confusion because we don't discuss the real motivations behind this and other union-back legislation.

That's something called "Joint-Employer.", where the franchisor becomes liable for everything a franchisee does and reduces franchisees to store managers (with big loans). Joint Employer basically destroys the concept of franchising. Joint Employer is the driving force behind everything organized labor proposes. 

Joint Employer is complicated and is difficult to discuss publically. The unions know this and stick with the more emotional minimum (living) wage as their headline.

Let's hope POMUSA understands this subtlety.


Anonymous said...

From Business Insider:

"As President of McDonald's USA, it may come as a surprise to hear that I support raising minimum wages for workers," Erlinger wrote. "In fact, I welcome legislation that increases wages for all workers."

Erlinger said the legislation, which also requires training to make workplaces "safe, inclusive and respectful," can be "highly effective" if it's done fairly.

Wow! With friends like this, who needs enemies!

Anonymous said...