Labor, business strike deal to end referendum over landmark California fast-food law

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Fast food companies agreed to pull a referendum off next year's ballot that sought to reverse Assembly Bill 257 under a complex peace accord with labor unions that could halt one of the most acrimonious battles in California politics.

A bill to reform state referendum law could become one of the most high-profile political fights between business and labor in California this year.Through the state budget approved over the summer, Democrats also revived a separate council, called the Industrial Welfare Commission, with more authority to raise wages without limits and to enact workplace conditions for fast food and other California industries.

“That’s what it takes,” Orr said. “It takes multilevel, multipronged steps in order for us to beat back the level of corporate interest and resources that are going into halting workers’ progress.” Unions agreed to halt their efforts to hold corporations liable for labor violations committed by their franchisees under AB 1228.

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