Fast food and healthcare workers in California could witness substantial salary increases under a recent agreement struck between labor unions and the restaurant industry.
According to the Wall Street Journal, the new agreement stipulates that restaurant chains with a minimum of 60 national locations must raise their workers’ hourly minimum wage to $20 by April 2024. This change would encompass the majority of the state’s 500,000 fast food employees.
Simultaneously, a separate bill introduced in California’s legislature aims to elevate the wages of approximately 455,000 healthcare workers (excluding doctors and nurses) to a minimum of $25 per hour over the next ten years, as reported by the Associated Press.
For both proposals to become law, they must first pass the state Legislature by the approaching midnight Friday deadline. Subsequently, they require the signature of California’s Democratic Governor, Gavin Newsom.
With this tight timeframe, legislators face the challenge of swiftly advancing both bills, particularly as the fast food bill is expected to undergo committee review on Tuesday morning. Following this, it is slated for a Senate floor vote by Thursday. If approved, it will then proceed to a final vote in the Assembly before reaching Newsom’s desk.
It’s worth noting that California already boasts one of the highest minimum wages in the United States at $15.50 per hour. This new agreement within the fast food sector highlights the ongoing influence of fast food industry workers in shaping wage negotiations.
Service Employees International Union international president Mary Kay Henry shared her perspective, stating, “I think fast food cooks and cashiers have fundamentally changed the politics of wages in this country and have reshaped what working people believe is possible when they join together and take on corporate power and systemic racism,” in an interview with The Associated Press.
Ingrid Vilorio, an employee at a Jack In The Box establishment in the San Francisco Bay Area, expressed her relief regarding the pay raise, emphasizing its positive impact on her family. She revealed that, until recently, her family had shared a house with two other families to manage their rent expenses.
Vilorio, who also works as a nanny, remarked, “Many of us in the fast-food industry need to hold down two jobs just to cover our expenses. This increase will provide us with some much-needed financial breathing room,” in an interview with The Associated Press.
Additionally, the new agreement introduces modifications to an existing law that had established state-appointed fast-food advisory councils responsible for making policy recommendations concerning wage hikes.
Under the revised terms, these councils, comprising representatives from the restaurant industry and labor, will possess the authority to annually raise the minimum wage of $20 per hour by a maximum of 3.5%.
If approved, healthcare workers would experience similar wage increases over the next several years.
According to the Associated Press, the salary enhancements for healthcare workers will be phased in over the next decade, contingent upon their workplace. Employees at large healthcare facilities and dialysis clinics could witness their wages increase to at least $23 per hour in the coming year, eventually reaching $25 per hour by 2026. Rural hospital workers would observe their salaries rise to a minimum of $18 per hour in the following year, with subsequent 3.5% annual increments, ultimately reaching $25 per hour by 2033.
Community clinic workers will witness their earnings rise to a minimum of $21 per hour by 2024, progressing further to $25 per hour by 2027, as per the report. Salaries at all other healthcare facilities covered by the proposal will climb to at least $21 per hour next year before ascending to $25 per hour by 2028.
Tia Orr, the Executive Director of Service Employees International Union-California, stated, “Everyone in the healthcare sector understands that we have a workforce crisis and that wages are the essential prerequisite for any solution. With this increase, more workers will join and stay in the healthcare workforce, and as a result, Californians will be safer and better cared for,” in an interview with The Associated Press.