Democrats are circulating a letter on Capitol Hill, encouraging their fellow lawmakers to advance legislation that would destroy franchise businesses. In its very last weeks, the Obama administration enacted devastating new labor regulations, designed to destroy the franchise business model, and put millions out of work.
The Democratic staffers issued a memo on Monday that was intended to rally the members of the House Committees on Education and Workforce to reject the Save Local Business Act, which would protect contractors and franchisors from being liable for labor violations committed by the subcontractors or franchisees that actually control labor practices directly and contractually.
The franchise business model allows individuals – especially fast food and restaurant owners – to own their own local businesses, and hire from their communities, while receiving the support and assurance that comes with being associated with a larger corporate structure.
The bill would overrule a decision by Obama’s National Labor Relations Board (NLRB), which expands the liability of the parent company, and heavily favors labor unions. It needs to be noted that, despite many union members voting for Trump in the most recent election, all major national unions directed their members and their dues towards pro-Hillary causes.
The Save Local Businesses Act, which would repeal this harmful Obama-era regulation has strong bipartisan support. Texas Republican, Henry Cuellar spoke in support of the legislation, saying, “We must ensure that our small businesses and franchises receive fair treatment from the government, and not confusion and arbitrary regulations that harm them … I have heard from small business owners throughout my district and the country, and it is clear that the NLRB’s joint employer decision was a major threat to the life of the franchise industry and the dream of business ownership for millions of Americans.”
The Democrats are – naturally – spreading lies and false narratives about the bill, in an attempt to paint the Save Local Business Act as a threat to the small businesses and franchisees. Their letter notes alleges that the bill, ” gives franchisors a blank check to dictate franchisees’ employment practices.” Further on the memo claims, “This bill insulates franchisors from any potential liability as a joint employer, and empowers them to exercise control over franchisees while leaving franchisees exposed to liability.”
Ultimately, the Democrats are concerned about how such legislation could disrupt the massive cash flows they receive from labor unions. The reason Democrats want to destroy the franchise business model is because franchise businesses are difficult to unionize. This is because unions would have to actually organize on a store-by-store basis, based on individual laborer’s needs.
However, democrats have always favored the insultingly cookie-cutter, top-down, approach where unions force all workers to pay them exorbitant dues just for being hired – this is a backwards and archaic practice which aggressively forces laborers into employment contracts designed for the benefit of fat-cat union bosses, and politically connected democratic politicians. “As subcontracting becomes increasingly common, maintaining and expanding joint employer standards are necessary for workers fighting for better wages and conditions,” They then claim that the bill would, “enable unscrupulous employers to more easily subcontract their labor for the purpose of keeping wages low and avoiding their bargaining obligations.”