This is what happens when the Virtue Signalers and SJWs in the People’s Republik Of California pass laws/rules without considering the actual economic consequences
Multiple Pizza Hut franchises in California are planning to lay off delivery drivers as the restaurant chain braces for an increase in the minimum wage for fast food workers next year.
Several Pizza Hut operators filed notices to comply with the Worker Adjustment and Retraining Notification Act saying they were discontinuing their delivery services.
“PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions,” a federal WARN Act notice filed by the fast-food operator with the state’s Employment Development Department said, Business Insider reported.
Another operator, Southern California Pizza Co. also announced layoffs of around 841 drivers across the state. The moves impact Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside and Ventura counties.
By “lay off” they mean “end the positions”, and, they will rely on 3rd party delivery services, which will mean, you guessed it, increased costs to the consumers. But, not as much as if they were paying drivers at least $20 an hour
The layoffs announcements came months before most fast food workers in California will begin earning a minimum wage of $20 per hour, beginning in April. The increase was proposed as a way to offset the increasing cost of living for Californians.
So, because the government of the PRC has done all they can to increase the cost of living in the PRC via bad economic policies (there are obviously other factors, let’s be fair, but, a huge one is Government) they compound that by raising the minimum wage for unskilled labor, which will increase the cost of living further. Great job!
One Pizza Hut delivery driver told Business Insider that he was offered a $400 severance if he stuck around through his February 5 layoff date.
“The money they are giving us as severance pay is a slap on the face,” he told Insider. “It comes to $3 a month for nine-plus years of service.”
Hey, they didn’t have to give you anything. Not a dime. And I truly hope it was a side gig, not your actual job. But, if he wants to complain, he should look towards Gavin Newsom and the California general assembly. The question now is, do others like Papa Johns, Dominos, etc follow and ditch the delivery drivers?
Read: Newsomconomy: Pizza Hut To Lay Off Drivers Due To Government Requirements »