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In the fragment of paragraph 4 of the text “Both letters...
McDonald’s and Wendy’s investors group demands fixes to franchisee child labor issues
1 A group of shareholders in fast food chains
McDonald’s and Wendy’s wrote fiery letters to the
companies, saying child labor violations at franchises
are hurting the brand. In separate letters to the
boards at the two restaurant chains, the investors
reference The Washington Post reporting on child
labor at McDonald’s and Wendy’s franchises as
the reason for leadership to take urgent action. In
essence, the investors argue that news coverage and
increased public scrutiny of possible labor violations
threaten the companies’ bottom lines. Both letters
were coordinated by the SOC Investment Group, an
organization that manages union pensions.
2 The McDonald’s investors say they represent
over $2.2 trillion in assets. Their letter highlights that
McDonald’s has had more than 2,300 child labor
violations at more than 13,000 restaurants since
2013, according to the Post’s reporting. And though
these took place at franchised restaurants rather
than corporate-owned ones, they say the board is
responsible for a “lack of oversight” that “exposes
shareholders to reputational and legal risks associated
with repeated violations of child labor law.” The
letter demands the board institute a zero-tolerance
policy with regard to child labor at franchises, that it
empower an internal committee to oversee human
rights issues, and that an independent human rights
review of franchisees be released in December.
3 The letter sent to Wendy’s is very similar. The
group of investors claim to represent $429.5 million in
assets, and their letter also cites the Washington Post
investigation, which found that Wendy’s franchises
have had some of the most child labor violations
per restaurant in the fast food industry since 2020.
Citing Labor Department data, the Post found that
Wendy’s franchises averaged nine violations per 100
restaurants, placing it among the top ten fast-food
chains. The Wendy’s investors’ demands are nearly
identical to those in the McDonald’s letter, including
the release of an independent report, but with the
addition of annual progress reports thereafter.
4 Both letters cite an Alabama lawsuit, which
names Wendy’s and McDonald’s restaurants
among hundreds of employers allegedly relying on
prison labor, to express concern that the respective
boards are failing to “mitigate risks to the Company’s
reputation.”
5 Neither company immediately responded to
MSNBC’s request for comment. The Washington
Post notes that in response to similar letters sent
last year: “In a previous statement to The Post, the
company said the child-labor violations don’t reflect
the experience of most teenagers working in ‘age-
appropriate roles and looking for meaningful jobs in
their local communities.’”
6 At least the companies’ investors are showing
some self-awareness: They understand that press
coverage of the problems they mention in their letters
is bad for business. Indeed, child labor has come
into focus because of harrowing stories like those
covered in the Post, but this issue is also in the news
because conservative officials nationwide have been
rolling back child labor regulations. So it’s smart
business, morally just and politically prudent to want
to disassociate one’s company from the exploitative
practices laid out in these letters.
Available at: https://www.msnbc.com/the-reidout/reidout-blog/ mcdonalds-wendys-investors-child-labor-rcna151722. Retrieved on: May 14, 2024. Adapted.
In the fragment of paragraph 4 of the text “Both letters cite an Alabama lawsuit”, the word “both” could be replaced, with no change in meaning, by
A
some
B
about
C
the two
D
part of
E
only