In the latest edition of “Multibillion Dollar Corporations Crying About Why They Can’t Pay a Living Wage,” two large Pizza Hut operators, PacPizza, LLC, and Southern California Pizza Co., have announced they are eliminating over 1,200 in-house delivery positions. 

PacPizza and Southern California Pizza claim they are eliminating these positions, including in Los Angeles and Sacramento, in response to AB 1228. This legislation, which SEIU 1021 and other unions pushed for and which was signed by Governor Newsom last September, will raise the minimum wage for California fast-food workers to $20 an hour.

SEIU 1021 Vice President of Organizing Brandon Dawkins reflected, “We know that regardless of the minimum wage, greedy corporations are always trying to maximize profits and save on labor costs. This is why all workers need a union and why fast-food workers have been fighting for their union.”

The affected drivers have voiced their discontent, with one long-term driver describing the $400 severance pay offered as “a slap in the face.” This move by these operators has left many questioning the treatment of workers who have been loyal employees for years.

In a race to the bottom, these Pizza Hut operators will be replacing their in-house delivery drivers with third-party delivery apps like GrubHub and DoorDash. Tens of thousands of Californians who work for gig economy corporations like GrubHub, Doordash, Uber, Lyft, and Instacart are also fighting for their union through the California Gig Workers Union.