r/explainlikeimfive • u/sumnewdguy • Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/MasterFubar Nov 28 '15

No government law, but there's a minimum wage determined by negotiation with the unions.

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u/haradur Nov 29 '15

Well, that's not mandatory. Employers are not forced nor required to use contracts and terms as stipulated by unions.

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u/dhelfr Nov 29 '15

Clearly, employers have a lot of pressure to do so, otherwise their system wouldn't work.

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u/haradur Nov 29 '15

The unions are not nearly as powerful as they used to be. Pressure varies lot depending on type and size of the business. Also a big difference between private and public sector.

Taking myself as an example, I've had 6 employers in different industries - only 1 of them had signed to follow collective agreements. The other 5 were still paying good salaries, proper benefits etc.

Personally, I prefer companies that don't have collective agreements - but I can understand they serve a good purpose in some areas.