[Congressional Record Volume 166, Number 215 (Friday, December 18, 2020)]
[House]
[Pages H7274-H7275]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       PUBLIC HOUSING IN ATLANTA

  (Mr. HALL asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. HALL. Mr. Speaker, I rise today mindful that I only have a few 
moments to address this body from the podium.
  As we turn our attention next week to Christmas, many of us are 
sending

[[Page H7275]]

and awaiting cards and packages. Let us not forget the postal workers 
who deliver more than 155 billion pieces of mail per year, which this 
year included our ballots in an election that saw the largest turnout 
in 100 years. For their work and commitment this holiday season and 
every holiday season, and for their extraordinary service to our 
country during the pandemic, I support overtime pay for these important 
civil servants.
  Another institution very old in our Republic, while not as old as the 
Postal Service, is Morris Brown College. Let us resolve to support 
Morris Brown College and contribute to the revitalization of the 
Atlanta University Center.
  As we seek to revitalize Morris Brown College, let us also consider 
ways to renew our urban centers. A way to do that is urban farming. It 
can deliver produce at a lower cost, leaving families to spend on other 
costs of living, like housing. It can also be good for the environment, 
as it can reduce CO2 emissions attendant with transporting 
food from faraway farms to urban centers.
  While we do this and we emerge from this pandemic, we must lift as we 
rise. That is why we must ensure minority- and women-owned businesses 
see increased participation in our society.
  One of the items I will include in the Record is a news story about 
27 former African-American franchisees who are suing McDonald's, a 
legendary business, for discrimination against its own franchisees.

27 More Black Ex-Franchisees Join Racial Discrimination Lawsuit Against 
                               McDonald's


               Total number of plaintiffs approaching 80

       Miami, Nov. 18, 2020--Twenty-seven new plaintiffs, all 
     former Black McDonald's franchisees, joined an ongoing 
     federal lawsuit against the fast-food chain claiming the 
     company engaged in systemic discrimination and denied them 
     the same opportunities as White franchisees.
       The new amended complaint now has 77 named plaintiffs in 
     the lawsuit originally filed by 52 Black former franchisees 
     on Sept. 1, 2020.
       The claims now include nearly 300 stores with compensatory 
     damages that average between $4 million and $5 million per 
     store, exclusive of punitive damages.
       The plaintiffs allege McDonald's sold itself as a recruiter 
     and developer of Black talent, profited from its Black 
     consumer base and maintained a two-tier system that 
     pigeonholed unsuspecting Black owners and assigned them 
     horrible locations guaranteed to fail.
       This suit comes on the heels of a federal class action 
     lawsuit filed October 29 by current Black franchisees.
       ``McDonald's is now fighting a four-front legal war. They 
     are being sued by current and former Black operators, Black 
     employees and senior executives,'' said James L. Ferraro, the 
     lead attorney for both the current and former franchisee 
     lawsuits. ``As the pool of plaintiffs grow, there will be 
     more pressure on the company to dispense with the public 
     relations ploys and focus on how it can help its Black 
     employees and franchisees.''
       At the same time there are calls for state pension funds to 
     drop McDonald's stock. States like New York, California, Ohio 
     and Florida have massive investments in McDonald's. In 
     Tennessee, Rep. Joe Towns has requested Treasurer David H. 
     Lillard to divest the state's holdings and reallocate the 
     money toward companies ``practicing good corporate 
     citizenship.''
       Ferraro said all these challenges are coming together 
     because the company has turned a blind eye to obvious racial 
     problems while promoting its public image.
       McDonald's once boasted a high of 377 Black franchisees in 
     1998. That number now stands at 186 even though McDonald's 
     has increased its stores from 15,086 to 36,059. The cash flow 
     gap for Black franchisees more than tripled from 2010 to 
     2019, per National Black McDonald's Operators Association 
     (``NBMOA'') data.
       Plaintiffs' average annual sales of $2 million was more 
     than $700,000 under McDonald's national average of $2.7 
     million between 2011 and 2016 and $900,000 under the national 
     average of $2.9 million in 2019.
       The lawsuit claims McDonald's was ruthless in steering 
     Black operators toward the oldest, most decrepit stores in 
     the toughest neighborhoods routinely rejected by Whites 
     franchisees. This severely limited opportunities for 
     expansion and growth, and far too often set in place a chain 
     of events--low cash flow, decreased equity, debt and 
     bankruptcy--that led to financial ruin.
       The plaintiffs argue McDonald's violated federal civil 
     rights laws by:
       Excluding Black franchisees from the same growth 
     opportunities found at safer, higher-volume, lower-cost 
     stores offered to Whites.
       Retaliating against Black franchisees for rejecting strong-
     arm offers to continue operations in crime-ridden 
     neighborhoods.
       Denying Black franchisees meaningful assistance during 
     financial hardships while White franchisees were routinely 
     given such support.
       Failing to provide any legitimate business reasons for 
     repeated denials of franchise opportunities over many years.
       Unfairly grading the operations of Black restaurants, which 
     resulted in poor internal reviews, effectively pushing Black 
     franchisees out of the McDonald's system by denying them the 
     eligibility for growth and favorable franchise terms.
       Providing misleading projections which induced Black 
     franchisees to purchase undesirable franchises.
       The amended complaint was filed with the U.S. District 
     Court for the Northern District of Illinois Eastern Division.

  Mr. HALL. We must ensure that all in this Nation have the promise of 
the American Dream free from discrimination.
  Mr. Speaker, I rise today mindful that I only have a few moments to 
address this body from the podium so I ask unanimous consent to place 
extended remarks and materials into the record on all these topics but 
I would like to briefly alert to this body the areas of concern that I 
seek placed into the Record.
  The first concerns housing. In Atlanta, we have a tremendous 
opportunity to expedite the redevelopment of vacant public housing 
sites including: Bowen Hornes, Bankhead Court, Hollywood court, Harris 
Hornes, Thomasville, and Jonesboro North and South. And I hope the days 
ahead achieve that end.
  All of these sites have the potential to not only incorporate 
affordable housing, but the addition of grocery stores in food 
desserts; healthcare facilities, improved access to public 
transportation; job and commercial centers, quality schools and parks 
and greenspace.
  And as we turn our attention next week to Christmas, many of us are 
sending and awaiting cards and packages. Let us not forget the Postal 
workers who deliver more than 155 billion pieces of mail per year, 
which this year included our ballots in an election that saw the 
largest turnout in 100 years. For their work and commitment this season 
and every holiday season, and for their extraordinary service to our 
country during a pandemic, I support overtime pay for these important 
civil servants.
  And another institution very old in our Republic, while not as old as 
the Postal Service, is Morris Brown College. Let us resolve to support 
Morris Brown College and contribute to the revitalization of the 
Atlanta University Center.
  As we seek to revitalize Morris Brown College, let us also consider 
ways to renew our urban centers. A way to do that is urban farming.
  It can deliver produce at a lower cost, leaving families to spend on 
other costs of living, like housing.
  It can also be good for the environment, as it can reduce CO2 
emissions attendant with transporting food from faraway farms to urban 
centers.
  As we improve our nation's housing, and find ways to revitalize our 
colleges and seek new ways to grow our food, let us not forget our 
past. That is why it is important for this Chamber to try to preserve 
our past. This includes the task of establishing the former 
headquarters of the Southern Christian Leadership Conference, where Dr. 
King did his work, alongside Congressman Lewis, as national historic 
sites.
  And, while we do this, and we emerge from this pandemic, we must lift 
as we rise. That is why we must ensure minority and women owned 
businesses see increased rates in our society.
  One of the items I will be placing in the record is a news story 
about 27 former African American franchisees who are suing McDonalds, a 
legendary business, for discrimination against its own franchisees. We 
must ensure that all in this nation have the promise of the American 
dream, free from discrimination.
  We must also ensure that legacy banks and black-owned banks are 
sources of capital to support financing of projects for minority 
communities.
  And, finally, during my time in here in Capitol Hill, I have 
introduced many pieces of legislation designed at making our criminal 
justice system fairer. But during this pandemic, we must also not 
forget about our brothers and sisters that are incarcerated. A study I 
will place in the record, from The Marshall Project, makes clear that 
incarcerated individuals are 4 times more likely to contract COVID-19. 
As society begins the long process of distributing and administering 
the vaccine, we must not forget them. They are no less worthy or 
deserving of medical care and should protected, for we are all God's 
children.

                          ____________________