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July 17, 2018

Corporate fast-food chains to end no-poach provisions in US

US Attorney General Bob Ferguson has revealed that seven major restaurant chains in the country have agreed to immediately stop no-poach provisions.

US Attorney General Bob Ferguson has revealed that seven major restaurant chains in the country have agreed to immediately stop no-poach provisions.

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According to Ferguson, these agreements will restrict worker mobility and prevent workers from moving among these companies’ franchise locations.

The restaurants include Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carl’s Jr, Cinnabon, Jimmy John’s and McDonald’s.

The fast food chains will not enforce provisions included in franchise agreements to stop workers from moving to potentially better positions and wages and will not repeat them in future contracts.

“Companies must compete for workers just like they compete for customers.”

Ferguson said: “Companies must compete for workers just like they compete for customers.

“They cannot manipulate the market to keep wages low. My goal is to unrig a system that suppresses wages in the fast food industry.”

Ferguson also noted that these restaurants will have to face a lawsuit from his office if they fail to end no-poach provisions.

The provisions will affect low-wage employees across 500 Washington locations and more than 25,000 locations across the US.

Fast food major McDonald’s recently announced that it would not enforce no-poach clauses found in its franchise agreements and will not include them in its new franchise agreements.

Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carl’s Jr., Cinnabon and Jimmy John’s are required to end no-poach language contracts across all Washington state locations within 120 days.

Free Report
img

How is technology having an impact on Consumer buying behavior?

As the world rapidly becomes more connected, it is important for brands to understand the impact that improved technology is having on consumer purchasing behaviors. To react effectively, brands must know how to engage with increasingly digitally savvy consumers. GlobalData’s latest Trend Tracker report provides an analysis of Digital Lifestyles – one of GlobalData's top consumer trends for 2022. The report includes an overview of how digital lifestyles are evolving, including the significant impact that the COVID-19 pandemic had on accelerating digitalization, and how this trend is emerging across different Consumer sectors. Key features included in the report:
  • A breakdown of the trend’s prominence across sectors
  • Insights into consumer online penetration, preferred electronic devices and engagement
  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
  • Analysis of what’s next for digital innovations and how brands can leverage the trend
Download this report to keep in touch with the more digital consumer.
by GlobalData
Enter your details here to receive your free Report.

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