Pizza Hut franchises across California announced that they will be laying off 1200 delivery drivers due to the new minimum wage for fast food employees, which is set to take effect in 2024.
The minimum wage hike was an initiative of Governor Gavin Newsom.
LA List noted that Gov. Gavin Newsom signed AB 1228 on Sept. 28, which boosts the average hourly wage for more than 500,000 California fast food workers in April 2024.
“That’s a romanticized version of a world that doesn’t exist,” Newsom said at the bill-signing event, according to the Associated Press.
“We have the opportunity to reward that contribution, reward that sacrifice, and stabilize an industry.”
Now, Pizza Hut operators have filed notices saying they were discontinuing their delivery services to comply with the federal Worker Adjustment and Retraining Notification Act (WARN).
According to a WARN Act notice filed by PacPizza LLC with the state’s Employment Development Department, Pizza Hut said:
“We have made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions.”
Meanwhile, Southern California Pizza Co. announced that 841 drivers at locations in Los Angeles, Orange, San Bernardino, Riverside, and Ventura counties will be laid off.
“Well, I knew that was coming. All these big corporations they have to make money,” said Scot Ward, owner of Stone Pizza in Roseville.
CBS News reported that fast food workers who advocated for the minimum raise increase said it was desperately needed, saying they were not making a livable wage.
“This new law that’s coming in, I feel like it will have everybody equal, you know?” said Maria Hernandez, a manager for another local fast food chain in Folsom, and a fast food union member.
“I was working long hours and making basically no money. With these extra five dollars, it’s a great deal,” said Hernandez.
Last year, McDonald’s announced it was testing automation technology to replace its workforce and make many of its employees redundant.
As The Daily Fetched reported:
The fast food restaurant announced that customers could use kiosks and a mobile app to get food from a conveyor belt instead of speaking with a staff member.
The new concept is designed to give the restaurant team “the ability to concentrate more on order speed and accuracy, which makes the experience more enjoyable for everyone,” Keith Vanecek, the restaurant’s franchisee, said.
Meanwhile, critics said the restaurant concept came following left-wing politician’s call for a minimum wage hike.
READ: McDonald’s Shuts Down All of Its US offices as It Prepares for MASS LAYOFFS
