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Just months after securing a significant wage increase, fast food workers in California are once again calling for higher pay to keep up with “the rising cost of living.”
The Service Employees International Union (SEIU), representing these workers, is demanding a minimum wage of $20.70 per hour by January 2025. This comes on the heels of a recent increase to $20 per hour, which took effect in April 2024.
The union cites the rising cost of living as the primary justification for their demand. With inflation continuing to outpace wage growth, workers argue that their current wages are not sufficient to cover basic living expenses.
The latest demand has caused a stir among industry stakeholders and policymakers. Some argue that frequent wage increases place an undue burden on fast food businesses, potentially leading to job losses and price hikes for consumers. Others counter that these workers deserve fair compensation for their labor, especially in a state with a high cost of living.
A statement released by the SEIU read: “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.”
The response to the first wage increase has been many locations going out of business, laying off employees en masse, menu price increases and the exploration of AI to automate jobs and replace worners.
It’s not all bad though, Joseph Bryant, executive vice president of the SEIU, said the industry has “not only added jobs but multiple franchisees have also noted that the higher wage is already attracting better job candidates, thus reducing turnover.”
The California Fast Food Council, a state-mandated body tasked with regulating the industry, is now faced with the challenge of balancing the interests of workers, businesses, and consumers. Their decision will have far-reaching implications for the fast food industry in California and could set a precedent for other states considering similar wage increases.
