Matt Haller & Michael Layman International Franchise Association FaegreBD Franchise Summit Minneapolis, MN August 6, 2015

Transcription

1 Matt Haller & Michael Layman International Franchise Association FaegreBD Franchise Summit Minneapolis, MN August 6, 2015

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3 Threats to franchise business model: Joint employer regulation Franchise relationship legislation Discriminatory minimum wage legislation Agenda Other terribly annoying issues: Proposed overtime rules, ambush union elections, etc.

4 IHS Economics 2015 Report

5 IHS Economics 2015 Report

6 SEIU vs. Franchise businesses For over a year, the SEIU has run a coordinated organizing campaign at the local, state, and federal levels against franchise businesses The SEIU wants to re-write franchise laws and existing contracts and undermine the business model to increase their membership and revenue

7 IFA Priority Issues

8 Joint Employer Regulation

9 Joint Employer Developments McDonald s case On July 29, 2014, NLRB General Counsel announced his office intends to name a parent franchisor as a respondent in cases involving alleged unfair labor practices committed by franchisees CNN decision (Sept. 2014) NLRB rejected principle of 30-year-long joint employer standard, that in order to be a joint employer, putative employer must have direct and immediate control Browning-Ferris case In May 2014, Board called for briefs to reconsider its 30- year-old direct and immediate control test for finding joint employment

10 How Joint Employer Standard May Change in Browning-Ferris BEFORE Current Joint Employer Standard Businesses are joint employers only when they share direct and immediate control over matters governing the essential terms and conditions of employment. AFTER General Counsel s (Proposed) Joint Employer Standard Businesses would be joint employers whenever one exercises direct, indirect or potential control over the other. Focus would be on industrial realities that make the controlling party necessary to meaningful collective bargaining.

11 Industries affected by Joint Employer Franchises Construction Staffing agencies Employee leasing companies Vendors Suppliers Any employer that contracts with another company to get services from that subcontractor s employees

12 Join the CSLB at:

13 Negative Joint Employer Bills in States Connecticut HB 6791/SB 1044 Dead for this year (Bills targeted big box and franchise businesses for higher minimum wage)

14 Good news on Joint Employer Federal both U.S. House and Senate committees have approved our joint employer legislation Tennessee SB 475 Enacted Louisiana HB 464 Enacted Texas SB 652 Enacted

15 Franchise Relationship Legislation

16 Franchise Relationship Legislation Developing effort at federal, state and municipal levels to re-write existing franchise contracts Inserts government into private contractual relationships Threatens the value of franchises and the consistency of franchise brands

17 Franchise Relationship Legislation California AB 525 Still being considered Another franchise relationship bill, SB 610, was vetoed by the Governor last year after an extensive IFA grassroots campaign

18 Franchise Relationship Legislation Massachusetts Pennsylvania Hawaii Puerto Rico (Maine and New Hampshire bills were not reintroduced in 2015)

19 Discriminatory Minimum Wage Legislation

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21 Minimum Wage & Fight for 15 Seattle minimum wage ordinance and IFA lawsuit Copy-cat legislation around country Funded by SEIU, coordinated with legal strategy and legally ambiguous worker centers Movement includes: Days of Action protests Union front organizations Corporate campaigns

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23 Department of Labor Overtime rules Proposed in July Would increase salary level from $23,660 to $50,440 Asked for feedback on duties test May become effective law late next year

24 IFA s Franchise Labor & Workforce Hub A one-stop resource for franchise business owners looking to learn more about current labor and workforce challenges Click on News and Issues for overtime resources

25 Other issues to know about Federal minimum wage legislation Federal franchise relationship legislation NLRB Ambush union election rule NLRB Micro-unions Department of Labor employee classification guidance Department of Labor religious nondiscrimination proposal

26 Franchise Action Network Join at Lobby on behalf of your business everyday Host an event at your business with a Member of Congress

27 FRANCHISE ACTION NETWORK

28 WE ARE ON OFFENSE IFA LAUNCHED CSLB TO WIN ON JOINT EMPLOYER IN CONGRESS IFA PARTNERS WITH RESTAURANT ASSOCIATIONS TO FIGHT BACK AGAINST CHICAGO; KC & STL WAGE DISCRIMINATION IFA TOUTS ECONOMIC SUCCESS OF FRANCHISE INDUSTRY TO EDUCATE LAWMAKERS & CREATE EMOTIONAL CONNECTION WITH REAL FANS IFA DEFEATED CTJOINT EMPLOYER BILL; PASSED TX, TN, LA LAWS; 12 OR MORE IN 2016 IFA PERSUADED 21 OF 26 TARGETED CALIFORNIA ASSEMBLY MEMBERS TO VOTE AGAINST SB 610; SECURED VETO IFA FILMED 6 FIGHT FOR $15 PROTESTS IN CHICAGO, DENVER, NEW YORK, SAN FRANCISCO, ST. LOUIS, AND PHILADELPHIA

29 WE ARE GROWING FRANCHISE BUSINESSES & ACTIVISM CONTINUES TO GROW STARTED WITH 1,000 FRANCHISE CONGRESS ADVOCATES NOW, 7,000 ACTIVE FRANCHISE ACTION NETWORK MEMBERS

30 WE ARE LOCAL FRANCHISEES MAKE UP 70 PERCENT OF FAN MEMBERSHIP!

31 WE ARE LOCAL

32 PUBLIC OPINION RESEARCH N=2,173 REGISTERED VOTERS (JUNE 5, 2015) 61% OF VOTERS THINK OF A FRANCHISE AS A BIG CORPORATION; ONLY 28% AS A SMALL BUSINESS 42% OF VOTERS THINK FRANCHISEES WORK W/ THE CORPROATE BRAND TO SET WAGES, HOURS, SCHEDULES & BENEFITS FOR THEIR EMPLOYEES; 23% SAY FRANCHISEES ARE TOLD BY THE BRAND; ONLY 21% SAY FRANHCISEES DECIDE ON THEIR OWN! VOTERS ARE SPLIT 36% TO 40% - AS TO WHETHER JUST THE FRANCHISEE OR THE FRANCHISEE AND FRANCHISORS - SHOULD BE RESPONSIBLE FOR WAGE VIOLATIONS COMMITTEE BY FRANCHISEES

33 PUBLIC OPINION MIXED N=2,173 REGISTERED VOTERS (JUNE 5, 2015) 55% OF VOTERS OPPOSE FRANCHISEES PAYING A HIGHER MINIMUM WAGE THAN OTHER SMALL BIZ; 28% SUPPORT A PLURALITY - 37% OPPOSE THE NLRB TAKING AWAY LOCAL CONTROL OF FRANCHISES; 33% FAVOR & 30% UNSURE

34 BRANDING CAMPAIGN

35 CAPITOL BRANDING CAMPAIGN RESULTS FROM MAY GENERATED 1,222,336 ad impressions to Capitol Hill / Beltway REACHED 56,000 Beltway audience members more than twice DROVE 2,300 visits to IFA's "Faces of Franchising" branded page GENERATED 175,000 Video Views (at cost of $0.01 per view) VIDEO FACEBOOK TWITTER SEARCH GOOGLE DISPLAY

36 DEFINING THE OPPOSITION THIS IS NOT A GRASSROOTS, WORKER-LED MOVEMENT THIS IS NOT A CAMPAIGN JUST FOR THE MINIMUM WAGE, IT S ABOUT GROWING SEIU S MEMBERSHIP UNIONS PRIMARY OBJECTIVE IS TO HELP THEMSELVES, NOT WORKERS SEIU DOES NOT WANT TO HELP FRANCHISEES EITHER

37 TAKEAWAYS THE FRANCHISE MESSAGE WORKS GREATER ENGAGEMENT BREEDS ALLIES/SUPPORT FRANCHISE MODEL NOT CONNECTED TO SMALL BIZ POSITIVE ADS NEEDED TO EDUCATE AUDIENCES DEFINING OUR OPPONENTS AS SELF-MOTIVATED WE CAN WIN FIGHTS WITH THE RIGHT VOICES

38 2016 AGENDA GROW SIZE & SCOPE OF FAN, COALITIONS & CAMPAIGNS AMPLIFY POSITIVE BRANDING CAMPAIGN IN DC & LOCALLY INCREASE COUNTER MEASURES TO OPPOSITION DEVELOP OPPORTUNITY EQUALITY REFORM AGENDA DON T RUN FROM THE SPOTLIGHT RUN TOWARD IT

39 $10 MILLION 3-YEAR FUNDRAISING EFFORT FRANCHISORS ENCOURAGED TO EDUCATE & SOLICIT ZEES CONTINUE DEFENSE OF BUSINESS MODEL AMPLIFY POSITIVE MESSAGING CAMPAIGN REPLENISH RESERVE TO ENSURE LONG-TERM VIABILITY

40 Contact us anytime Matt Haller Michael Layman IFA's Franchise Action Network Annual Meeting September 29-30, 2015, Washington, D.C.