California’s fast-food industry calls for referendum on new labor legislation

Law provides for councils to represent workers, but opponents claim menu prices will increase and restaurants will close

The fast-food industry is seeking to overturn one of the most significant labor wins in recent American history by trying to scrap a new law in California that will establish an industry council for the sector on wage standards and other regulations, including safety.

The Fast Food Accountability and Standards Recovery Act, AB 257, was signed into law by the California governor, Gavin Newsom, on 5 September in what is seen as a huge fillip to a US labor movement seeking to capitalize on a wave of unionization drives.