Jimmy John’s operator speaks out on union efforts

Minneapolis franchisee faces stepped up pressure from labor group

Mike Mulligan, a 10-unit Jimmy John’s franchisee in Minneapolis, said the leaders behind a pro-union group of employees want to make an example of his company as part of their plans for a wider unionization movement of the restaurant industry.

Mulligan, who co-owns MikLin Enterprises with his wife and son, said business so far has been largely unaffected despite stepped-up actions by the Jimmy John’s Workers Union, a group of employees aligned with the Industrial Workers of the World. The union has made several unfair-labor complaints against MikLin and demanded raises, health care coverage and paid sick leave.

“With regard to the business itself, sales and customer traffic, our business continues to enjoy the acceptance it has had,” Mulligan said. “The more people learn about who we’re dealing with, the more sympathetic they are to what we’re going through. … We’re not dealing with a traditional union; we’re dealing with people who want to make a political statement.”

For the past several weeks, the JJWU has made paid sick leave the focus of its pressure campaign. Members of the union wore “Sick of Working Sick” buttons during their shifts and sent a letter to Mulligan and his son, Rob, saying that if MikLin officials did not meet with a delegation from the JJWU, the group’s members would plaster thousands of copies of a union-created poster across Minneapolis.

“The owners are ignoring our voices and our health,” employee and JJWU member Dan Rude said in a statement. “This leaves us no choice but to go public with this issue and call upon customers to let owners Mike and Rob Mulligan know that paid sick days are an important issue for workers and customers alike. If Mike and Rob continue to refuse to talk with us, we will take dramatic action to ensure the public knows about our struggle.”

Paid sick leave is part of the JJWU’s “Ten Point Program for Justice at Jimmy John’s,” which also asks for workplace accommodations like paid parental leave, an across-the-board pay raise and health care coverage for at least 70 percent of employees’ medical costs.

“This latest issue is another example of [the JJWU’s] attempt to alienate our workforce from our family-owned management,” Mulligan said. “They consistently misrepresent our company and our people in contrived situations that make us appear to be the bad guys. We’ve been in business 10 years and had one unfair-labor-practice complaint before these guys showed up, and in the past five months, we’ve had more than 50.”

Paid sick leave remains top of mind for many restaurant operators given recent legislative developments. The Wisconsin Senate last week approved a bill that would essentially void a paid sick-leave measure in Milwaukee approved by voters in 2008. A recent report published in San Francisco, which became the first major municipality to require paid sick leave in 2007, revealed that many restaurants in the city are struggling to adhere to the law. Washington, D.C., is another major city requiring paid sick leave for local businesses.

The stipulations of the JJWU’s paid sick-leave demand include one sick day per month of employment for every worker, as well as the ability for workers to call in sick without a doctor’s note. Also, the employees have asked that responsibility to find a substitute worker for a shift fall on management, not the ill staff member.

“We don’t ask people to work sick,” Mulligan said. “We do not allow people with flu-like symptoms to work, and we’ve tried to demonstrate flexibility if they can’t show up.”

He noted that meeting the union’s demands for sick leave, higher pay and health care could bankrupt the company.

“The things we do are consistent with the industry in which we operate,” Mulligan said. “If we agreed to these demands, it would cost four times what the company made last year. … When I say, ‘The things for which you’re asking are not done in the industry in which we’re competing,’ they say, ‘Yeah, that’s the problem. We’re going to start with you and revolutionize the industry.’”

The JJWU tried once before to formally unionize the 10 locations owned by MikLin, failing by an 85-87 vote last October. Mulligan said the votes in favor of unionizing represented about 40 percent of MikLin’s 220 employees.

The union appealed that result, alleging that MikLin had engaged in illegal union-busting and intimidation efforts to sway the vote. In January, the National Labor Relations Board brokered a settlement between the two groups in which the JJWU withdrew its petition and MikLin admitted no wrongdoing. The JJWU has the option to call for a second unionization vote this spring by filing another petition.

Mulligan said the only thing an operator in his position can do is to treat employees fairly.

“I don’t know if there’s an end in sight,” he said. “We’ll just try to do the right thing by our employees and depend on them to make the right judgment about us.”

Contact Mark Brandau at mark.brandau@penton.com.
 

If you can't pay for health, you should be out of business

Frankly, the idea that this company can't afford to give decent wages and sick leave to employees is sicking. If you can't afford to do this, then you have a faulty business model and deserve to be out of business. My company provides all of these benefits and if one actually takes the time to research options instead of having knee-jerk right-wing hissy fits, they would find that it is quite affordable. Not to mention the added bonus of happier workers and increased productivity. Also, if you don't like the idea of dealing with a union (which are not the three-headed monsters the above comments attempt to make them out to be), an easy way to undercut union support would be to go ahead and provide the benefits that the unions tell your employees they will need a union to get. My profits have never been better since given my employees healthcare, $9 wages, and sick leave. I have stacks of applications of people wanting to work in my business, and more than once I have had customers tell me that how I treat my employees encourages them to support my store by the way. And I have never heard a peep from my employees about unionizing. Happy workers = Happy customers = more $.

Mafia Style Thugs

These clowns in the JJWU are nothing but Nobama supported mafioso style thugs who will stop at nothing to get their greedy fingers in a business owner and union member's pockets. Their goal is single-fold. How much wealth can I transfer to me? (Sound familiar from Nobama) They have repeatedly demonstrated they don't care about union members....it is about the union dues. This family needs to stand strong against these homegrown terrorists. Remember, "an eye for an eye" in whatever they do to you.

Jimmy Johns Unionization.

This group, Industrial Workers of the World, is a Marxist anti-American group. One look at their history tells one all they need to know. They also have heavy support from other communist organizations and the democrat party, google is your friend.

I feel for this family, but with today's laws and the current administration... Myself, I would either fire the entire lot and take my chances or just sell the stores and relocate to a right to work state to begin anew.

Honestly this story gives me second thoughts about even opening a Brick and Mortar store in heavily unionized Michigan. I have seen first hand the destruction that these unions bring upon a business. Once they are in it is just a matter of time before the quality drops and the doors close, especially with small mom and pop enterprises. The last shop I saw unionized lasted "almost" two years, the union buried them in demands and they took a sever hit in quality, as the employees had the owners by the you know whats. They finally had to sell as the union was breaking their backs financially. They sold to a multinational out of Europe, who promptly (the day the papers were signed), shut the doors and relocated to a nonunion business friendly state. I was a contract worker for 3 years with this company and was not involved with the union in this particular shop. I lost my contract when they left.

Another shop that I also was personally involved in as an employee lasted roughly three years once unionized, they too closed the doors and left the state. The first thing to go was roughly 20% of my pay, they cut my pay substantially and forced me to pay dues. I had to leave, as it was just not worth it, especially seeing where my dues went. I later reconnected with the company out of state and contracted directly with them in their new home in TN.

Here is an interesting video, watch the Noodles and Company employee. This will have you running for the hills. Imagine an entire shop of these guys.

http://www.youtube.com/watch?v=7K_zS4NV0wE&playnext=1&list=PL4B85AAF6498...

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