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Chicago Tribune
Chicago Tribune
Business
Jessica Wohl

Franchising group seeks reasoning behind NLRB opinion

Oct. 31--A franchise association is again speaking out against an opinion issued by the National Labor Relations Board's general counsel in July, asking that he disclose how he concluded that franchisers should be considered joint employers in labor disputes at franchised outlets.

In his opinion, NLRB General Counsel Richard Griffin said McDonald's could be considered a joint employer at its franchised restaurants, a distinction that could increase the fast food giant's responsibility in labor cases. Since then, 61 new charges have been filed against 27 other franchise brand companies and local franchise business owners in areas including travel, full-service restaurants and the maintenance industry, according to Steve Caldeira, president and CEO of the International Franchise Association.

McDonald's has long maintained that its franchisees are independent owner-operators who set their own policies, including wages. About 90 percent of McDonald's U.S. restaurants are owned by franchisees. McDonald's previously said it would contest the NLRB's opinion that it is a joint employer with its franchisees.

On Thursday, the association issued a copy of a letter Caldeira sent to Griffin, along with copies of letters recently sent by members of Congress.

Caldeira also said his association, which represents both franchisees and franchisers, plans to file a Freedom of Information Act request seeking the reasoning behind Griffin's opinion.

In his letter to Griffin, Caldeira writes: "In an unprecedented move, you appear to have ignored decades of established law governing joint employment and franchising."

Back in July, Caldeira called Griffin's recommendation "wrong and unjustified" and that a ruling that they are joint employers would be a "devastating blow to franchise businesses and the franchise model."

The NLRB declined to comment.

jwohl@tribune.com

Twitter @jessicawohl

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