CEO DATELINE - IFA lays offs staffers, cites budget cuts
CEO DATELINE - IFA lays offs staffers, cites budget cuts
- March 1, 2016 |
- Walt Williams
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The International Franchise Association has laid off at least three staff in an apparent budget-trimming measure, according to sources within the organization.
Among those let go is Bill Grubb, senior vice president of finance and administration, who was notified Monday of the termination. At least two other staffers are also losing their jobs.
The staff shakeup comes roughly five months after former IFA lobbyist Robert Cresanti became CEO of the $23 million-revenue association following the departure of Steve Caldeira, who left in September 2015 because of a contract dispute. Cresanti confirmed the layoffs in a statement to CEO Update, although he didn't say how many or which staffers had been let go.
"Over the past few years, IFA has significantly increased our spending on government relations, public affairs and advocacy as the business model has come under attack," Cresanti said. "It's always difficult when good team members leave an organization, but based upon a new strategic plan and budget approved last week at our convention, it was a necessary step in order for us to continue protecting franchising over the long term."
In recent years, IFA has been fighting efforts by local officials and activists to raise the minimum wage in city and states across the nation. The association took Seattle to court in 2014 for a minimum wage ordinance that would have treated franchises like large businesses for enforcement purposes. IFA lost that case and has asked the U.S. Supreme Court to review the decision.
Cresanti alluded to the minimum wage fight during an address to members at the association's annual convention in San Antonio, which was held from Feb. 20-23. He told attendees that government regulation "darkens the skies and undermines the success of franchising," according to the industry news site Nation's Restaurant News.
IFA also has been especially critical of the National Labor Relations Board's new joint-employer standard, which hit its industry particularly hard by finding that franchisors could be held responsible for labor violations committed by franchisees.
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