In an era when companies increasingly use subcontractors and temp agencies to free themselves of employment decisions and headaches, the general counsel of the National Labor Relations Board ruled on July 29th that McDonald’s could be held jointly liable for labor and wage violations by its franchise operators.
Questions:
1. What percentage of the 181 claims of illegal firing or penalties for pro-labor activities did the labor board’s general counsel find to have merit?
2. What other industries did McDonald’s claim would be affected by the ruling and what could potentially result?
3. In November 2012, five one-day strikes by fast-food workers focused on a $15 per hour wage. How are these cases linked to this event?
4. From an accounting standpoint, what are the costs and benefits of increasing the use of subcontractors and temp agencies?
Source:
Greenhouse, S. (2014).McDonald’s Ruling Could Open Door for Unions. The New York Times, July 29 (Retrievable online at http://www.nytimes.com/2014/07/30/business/nlrb-holds-mcdonalds-not-just-franchisees-liable-for-worker-treatment.html?hpw&action=click&pgtype=Homepage&version=HpHedThumbWell&module=well-region&region=bottom-well&WT.nav=bottom-well&_r=0)