NLRB Decision Supersizes Franchise Fast-Food Worker Unions’ Power

The Heartland Institute consults CEI's Trey Kovacs on the NLRB's decision to allow organized labor groups to negotiate with the company franchise itself.

Trey Kovacs, a policy analyst at the Competitive Enterprise Institute, says the decision decreases the incentive to start a new business in America.

“There are thousands of business relationships all across the country, and small businesses like contractors and franchisees are creating 60 percent of the jobs,” Kovacs said. “If these small businesses are held liable for labor violations at the behest of the federal government, it will increase costs and lead to layoffs, and you will see far less entrepreneurship.

“It shouldn’t be the job of unelected bureaucrats to upend thousands of business relationships to basically promote a special interest group like labor unions,” Kovacs said.