McDonald's object to minimum wage

BY ROBBIE SMYTH

Happy meals, sad workers

Justin Timberlake is "just lovin' it", and why wouldn't he be? He is set to pocket $6 million as McDonald's shell out an estimated $1.5 billion on their new global advertising campaign. However, the same company has a problem finding the cash to pay its Dublin workers €6.35 an hour.

McDonald's are worried about the productivity gains from paying the €6.35 but not so much about the money they have shelled out to Justin to sing "just lovin' it". Timberlake's role in the media campaign will help make the burger giants "contemporary and relevant" to 16-24 year olds, according to Will Cooke, director of operations at McDonald's in Ireland

Last week, new minimum pay rates for Dublin came into force despite objections by McDonald's in Ireland. The Labour Court had received 22 objections to paying the new rate, 19 of them from McDonald's.

The objections made by McDonald's covered not just the increased hourly wage rates but also paid meal breaks, how much money the company would deduct from workers' wages if they ate company food and the introduction of a sick-pay scheme.

McDonald's argued that the new wage rates are not justified and also argued that the introduction of a sick-pay scheme would be a "charter for extra paid holidays".

It is no wonder then that McDonald's has realised that it has a negative image internationally but wages paid to its staff are only one aspect of this problem.

The negative international image of McDonald's has grown in recent years because of events such as by the McLibel trial, anti globalisation protests and negative health claims about the food quality and fat content of McDonald's products.

Despite the setback of the first ever recorded losses last year, the restructuring is producing results with McDonald's registering second quarter growth this year of 11% and profits of $470 million. It is clear that McDonald's has the money to pay workers but is unwilling to free up the cash.

A quick internet browse shows how much web-based comment McDonald's is generating, little of it positive, so much so that the mcspotlight.org site has proclaimed today, 16 October, as Worldwide Anti-McDonald's Day. For the views of some disgruntled McDonald's workers, you can visit McDonald's Workers' resistance at mwr.org.

It seems that Happy Meals do not happy workers make.