Franchising group opposes minimum wage increase

…take wage Prop. 202 would raise the state's minimum wage to $6.75 per hour from the current $5.15 per hour under federal law and would be indexed to inflation.

The Business Journal of Phoenix
October 23, 2006

Franchising group opposes minimum wage increase

A national group representing franchised businesses is opposing an Arizona ballot question to increase the state's minimum wage.

The International Franchise Association has announced its opposition to Proposition 202, arguing that its rules would burden employers and the link to inflation would take wage Prop. 202 would raise the state's minimum wage to $6.75 per hour from the current $5.15 per hour under federal law and would be indexed to inflation.

IFA and other business groups oppose the measure saying it would require companies to keep more paperwork on entry-level workers and allow outside groups. They also cite provisions that would allow labor unions to file complaints against employers and access their financial and employment documents.

IFA members include restaurants chains — Dunkin' Donuts, Domino's Pizza, Peter Piper Pizza and Pizza Hut — as well as hotel groups such as Marriott International, Radisson Hotels & Resorts and Choice Hotels International.

Other business groups opposed to 202 include the National Federation of Independent Business, Greater Phoenix Chamber of Commerce and Arizona Chamber of Commerce & Industry.

Supporters include labor unions, the Arizona Democratic Party and Gov. Janet Napolitano. They contend the wage hike will help the working poor and entry-level workers, and boost overall pay scales.


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