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US Wage Increase Splits Food Industry

The US federal government is considering a $15-an-hour minimum wage that would affect tens of millions of low-wage restaurant and food-industry workers, and the main trade organisation for those industries is lobbying against the bill. But some CEOs have broken with their organisation, saying their companies welcome the change. 

“… the Raise the Wage Act is the wrong bill at the wrong time for our nation's restaurants,” the National Restaurant Association wrote in a letter to congressional leaders. “The restaurant industry and our workforce will suffer from a fast-tracked wage increase and elimination of the tip credit.”

Some of the world’s largest restaurant chains, however, broke away from the association’s efforts, saying they welcomed the wage increase. Denny's CFO Robert Verostek said that a similar law in California has actually improved their business, and the CEO of fast food giant McDonald’s said that if the bill is passed, his company “will do just fine.” 

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