You want to talk about a clear case of government corruption? How’s this one for an example? California Governor Gavin Newsom has decided to give Panera Bread a hall pass from the state’s new $20 minimum wage law. And why, you ask? Because Greg Flynn, the billionaire CEO of Panera, happens to be a generous contributor to Newsom’s political campaigns. Now, if that doesn’t smell like corruption served hot and fresh, I don’t know what does.
In September, Newsom signed a law to raise the minimum wage for fast-food workers to $20 per hour, claiming it was a step towards rewarding the industry’s workforce, which is predominantly people of color and women. But lo and behold, when it came to his buddy’s business, he suddenly developed selective amnesia about these noble intentions.
Flynn, who made his fortune running one of the world’s largest restaurant franchise operations, was a vocal critic of the minimum wage bill, also known as the FAST Act. He claimed it would destroy franchising in California. Well, apparently, all it took to escape this “devastation” was some freshly baked bread and a hefty donation to Newsom’s political kitty.
According to Bloomberg, Panera Bread got a free pass because it ‘bakes bread and sells it as a stand-alone item.’ Really? That’s the best they could come up with? It’s almost like they’re not even trying to hide their blatant favoritism anymore.
And while Panera gets to enjoy its freshly baked exemption, other fast-food chains are left to bear the brunt. In December, two major Pizza Hut operators in California announced they would be laying off all their delivery drivers due to the new law. Because, you know, unlike Panera, they don’t sell bread as a standalone item.
Newsom’s move reeks of political cronyism and is a slap in the face to the hardworking fast-food workers he claimed to champion. It’s actions like these that have led to a fresh recall effort against him, the second in three years.
In the end, it seems like Newsom’s ‘sausage-making’ of politics only serves those who can afford to buy the sausage. And that, my friends, is a recipe for disaster.
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