The California Economy: Fast-food Workers Demanding More Pay As Sales Decline

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The struggle is far from over, just months after California raised the minimum wage for fast-food workers to $20, the California Fast Food Workers Union (CAFFWU) is seeking an additional 70-cent hourly increase by January, citing ongoing industry struggles.

The union, part of the Service Employees International Union (SEIU), made the demand during the state's first Fast Food Council meeting on Wednesday, KTLA 5 News reported. 

The council was established by legislation signed into law by California Governor Gavin Newsom in September, which raised the minimum wage for large fast-food chains and created a council to set standards for working conditions.

Despite the recent wage increase, many restaurants have reduced hours, closed locations, and raised menu prices, according to a report by the Employment Policies Institute. The CAFFWU is also demanding increased job stability, fair payment for owed back pay, stable schedules, and an investigation into alleged "pervasive abuses" in the industry, including wage theft and harassment.

The median fast-food worker in California earned $16.60 an hour in 2022, according to the Bureau of Labor Statistics. The CAFFWU, which became the first-ever statewide fast-food workers union in February, is fighting for higher wages, better working conditions, and protections against unfair firings.