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In California, Pizza Hut is apparently all set to fire over 1,200 delivery drivers. The layoffs come after the impending $4 increase in California's minimum wage. The minimum wage in the state will increase from $16 to $20 per hour in April 2024, giving fast-food employees a salary boost of about 30%.
The California Employment Development Department received Worker Adjustment and Retraining Notifications from two different franchise operators of Pizza Hut, located in Orange County, that detailed changes to their restaurant business models.
Reductions in staff are anticipated to start as early as February 2024, a few weeks before the state's $20 minimum wage for fast-food employees is scheduled to take effect.
Once the news was made viral by X (formerly known as Twitter) user @SCMountainGoat, social media users flooded the comment section of the post to express their opinion and condemn the fast-food chain.
Netizens criticize Pizza Hut for laying off over 1,000 delivery drivers
According to federal and state documents, hundreds of outlets of the pizza chain in California announced to cut off several delivery drivers ahead of the state's plan to raise the minimum wage for fast-food workers. As a result, over 1,200 drivers were laid off.
Citing federal employment notices, Business Insider reported on Tuesday, December 26, that Pizza Hut delivery drivers in California, including those in Sacramento, Palm Springs, and Los Angeles, are affected by the job layoffs.
According to the same source, PacPizza, LLC (doing business as Pizza Hut), stated in a Worker Adjustment and Retraining Notification (WARN) Act notification that it had decided to terminate all delivery driver positions due to a business decision to stop using third-party delivery services. The notification was submitted to the Employment Development Department of the state.
According to the report, a driver of the famous pizza franchise, a nine-year employee of the company, claimed that he was reportedly given $400 in severance money. This came with the condition of having to work until his February 5 layoff date. As per the report, he said,
“The money they are giving us as severance pay is a slap on the face. It comes to $3 a month for nine-plus years of service”
The move was made in anticipation of Assembly Bill 1228, which affects California workers employed by any fast-food company with more than 60 sites nationwide. The current minimum wage in California is $15.50 for all employees. It is expected that the rise will impact over 500,000 workers throughout the state.
According to the same source, customers will have to rely on outside delivery services like DoorDash, Uber Eats, and Grubhub, all of which are compatible with the majority of Pizza Hut locations in California.
As soon as a netizen tweeted the information on X, people took to the comment section of the post to voice their opinion against the decision and condemn the company.
As per LA Times, the fast-food firms agreed to remove a 2024 ballot initiative that would have overturned a law aimed at boosting wages and working conditions. In return, labor unions and fast-food companies reached a settlement that led to California's new minimum wage for fast-food workers.
On the other hand, another Pizza Hut business, called Southern California Pizza Co., has also declared its intention to fire 841 drivers. The Reno-Tahoe region, Palm Springs, Sacramento, Southern Oregon, Central California, and other places will be affected by these cutbacks in addition to Los Angeles.
