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Seven Fast-food Chains In The U.S. To Scrap ‘No-Poaching’ Regulations

In a major boost for the employees of the fast food-chain firms, 7 U.S. based fast-food chains have agreed to remove the policies that prevent their employees from changing franchises of the same chain. Reportedly, this Thursday, Bob Ferguson—the Washington Attorney General—had declared binding agreements on the fast food-chain firms, including Buffalo Wild Wings, McDonald’s, Jimmy John’s, Auntie Anne’s, Cinnabon, Auntie Anne’s, and Arby’s. As per the agreement, the food chains violating the agreement are bound to face legal action from the Washington state.

For the record, the ‘no-poaching’ policies prevented franchises of a firm to recruit employees from its other franchises. The move helped the franchise owners to retain the employees after having invested in training them. However, the policy restricted the wages and job prospects of the experienced employees, thereby keeping most of the employees across the U.S. in the same low-wage posts.

Sources cite that earlier McDonald’s had unleashed its plans of ending the no-poaching business practice from its franchises.

Fergusson, in his statement, had declared that without the right of seeking better job avenues at other franchises, employees had lesser leverage for demanding an increase in their recent designations. He further claimed that firms must compete for employees as they do for attracting customers. The Attorney General also appreciated the seven fast-food chains for agreeing to terminate the business practice.

In a significant contribution towards Go Green Initiative, last month, McDonald’s—America’s most renowned fast food chain firm—had declared of banning the use of plastic straws at all its restaurants in Ireland and the UK by 2019. The U.S. based fast food chain further announced that it will launch a paper alternative in all of its 1,361 branches in September as a replacement for plastic straws.

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