Page 3 - aruba-today-Sept 2 2020

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U.S. NEWS Wednesday 2 september 2020
Black former franchisees sue McDonald's for discrimination

By DEE-ANN DURBIN ing across our franchisees,
AP Business Writer suppliers and employees."
More than 50 Black former McDonald's has a troubled
McDonald's franchise own- history with Black franchi-
ers are suing the burger sees. In 1969, activists boy-
chain, saying the com- cotted four McDonald's in
pany steered them to less- Cleveland until the compa-
profitable restaurants and ny sold them to Black own-
didn't give them the same ers. In 1983, a Black fran-
support and opportunities chise owner from Los Ange-
given white franchisees. les sued the company for
The 52 plaintiffs, who discrimination; McDonald's
owned around 200 U.S. eventually paid him $4.5
stores before being forced million. In 1996, McDonald's
to sell them over the last leadership acknowledged
decade, are seeking com- that Black franchisees
pensation of $4 million to $5 weren't achieving par-
million per store, accord- ity with their white counter-
ing to the lawsuit. The suit parts and resolved to make
was filed Tuesday in federal changes. Don Thompson,
court in Chicago, where the company's first Black
McDonald's is based. president and CEO, served
According to the lawsuit, from 2012 to 2015.
McDonald's steered Black This June 25, 2019 file photo shows a McDonald's sign outside the restaurant in Pittsburgh. But charges of discrimina-
franchisees to stores in Associated Press tion continued. In Janu-
inner-city neighborhoods sees, the lawsuit says. Black attorney representing the "These allegations fly in ary, two Black McDonald's
with lower sales volumes franchise owners were also plaintiffs. "It's a Big Mac. the face of everything we executives sued the com-
and higher security and denied the chance to buy They're the same every- stand for as an organization pany. They claimed Mc-
insurance costs. The com- more profitable stores in where." Ferraro also noted and as a partner to com- Donald's shifted advertising
pany would provide them better neighborhoods, it that the number of Black munities and small business away from Black custom-
with misleading financial says. As a result, the plain- McDonald's franchisees has owners around the world," ers, graded Black-owned
information or push them tiffs averaged sales of $2 fallen by half over the last the company said. "Not stores more harshly than
to decide quickly when a million per year. By com- two decades. The chain only do we categorically white ones and implement-
store became available, parison, McDonald's aver- had 377 Black franchisees deny the allegations that ed business plans that had
the lawsuit says. age U.S. store brought in in 1998; it has 186 now. At these franchisees were un- a discriminatory impact on
Once Black franchisees $2.7 million annually be- the same time, the number able to succeed because Black franchisees.
owned a store, they would tween 2011 and 2016 and of franchised restaurants of any form of discrimina- At the time, McDonald's
be asked to rebuild or re- $2.9 million in 2019, the law- has more than doubled to tion by McDonald's, we are said it disagreed with the
model within a shorter pe- suit says. 36,000. confident that the facts characterization of its ac-
riod of time than white fran- "Revenue is determined by McDonald's Corp. denied will show how committed tions. It noted that 45% of
chisees without the rent re- one thing and one thing the allegation and de- we are to the diversity and its corporate officers and
lief and other financial sup- only: location," said James fended its history with Black equal opportunity of the all of its field vice presidents
port given to white franchi- Ferraro, the Miami-based franchisees. McDonald's System, includ- are people of color.q

Feds want deal with North Dakota over pipeline protest costs

By JAMES MacPHERSON last month to deny the fed- costs including the cleanup
Associated Press eral government's motion of actions facilitated by the
BISMARCK, N.D. (AP) — The to dismiss North Dakota's Corps of Engineers," Cra-
Army Corps of Engineers is lawsuit seeking to recover mer said Tuesday. The state
recommending that the more than $38 million in "has one thing in mind and
federal government ne- damages the state claimed that is to make us whole.
gotiate a settlement with from the monthslong pipe- We don't go away on these
North Dakota for more than line protests almost four things like everybody else."
$38 million that the state years ago. "I request that The $3.8 billion pipeline has
spent policing protests you consider engaging in been moving oil from the
against the Dakota Access settlement discussions with Dakotas through Iowa to
oil pipeline. North Dakota to determine Illinois for more than three
In a letter obtained by The whether a reasonable reso- years. Thousands of oppo-
Associated Press, the De- lution is within reach" Army nents gathered in south-
partment of the Army is Under Secretary James ern North Dakota in 2016
asking the Department of McPherson wrote in his let- and early 2017, camping In this Nov. 2, 2016 file photo, dozens of protestors demonstrating
Justice to enter into settle- ter to Acting Assistant Attor- on federal land and often against the expansion of the Dakota Access Pipeline wade in
ment negotiations with the ney General Ethan Davis. clashing with police. Hun- cold creek waters confronting local police, near Cannon Ball,
state "to avoid protracted North Dakota Republican dreds were arrested over N.D. Associated Press
and costly litigation, par- U.S. Sen. Kevin Cramer six months.
ticularly in light of the harm called the recommenda- North Dakota Attorney ers to illegally camp with- Traynor, who is based in Bis-
that occurred in this case." tion "very significant" and General Wayne Stenehjem out a federal permit. The marck, ruled last month the
The request comes follow- the right thing to do for the has long argued that the Corps has said protesters Corps failed to comply with
ing U.S. District Court Judge federal government. Corps allowed and some- weren't evicted due to free its own mandatory permit-
Daniel Traynor's decision "North Dakota assumed all times encouraged protest- speech reasons. ting process.q