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iandhr

(6,852 posts)
Thu Jun 5, 2014, 10:42 AM Jun 2014

McDonald's CEO: 'We Will Support' A Minimum Wage Hike

Source: Huff Post

McDonald's might finally have figured out that paying its low-wage workers more would actually be a good thing for McDonald's.

McDonald's CEO Don Thompson recently suggested his company would support a bill, proposed by President Barack Obama, raising the federal minimum wage to $10.10 an hour from $7.25. Such a wage hike likely wouldn't satisfy his workers, some of whom recently stormed the company's Oak Brook, Ill., headquarters demanding $15 an hour. But it would be a noticeable shift in attitude for the world's biggest restaurant chain, which has so far been neutral as the debate about higher wages has roiled around it.

"You know, our franchisees look at me when I say this and they start to worry: 'Don, don't you say it. Don't you say we support $10.10,'" Thompson said during a little-noticed talk at Northwestern University's Kellogg School of Management last month, according to a Chicago Tribune report. "I will tell you we will support legislation that moves forward."


Read more: http://www.huffingtonpost.com/2014/06/04/mcdonalds-ceo-minimum-wage-hike_n_5445539.html



Has hell frozen over?
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McDonald's CEO: 'We Will Support' A Minimum Wage Hike (Original Post) iandhr Jun 2014 OP
He likes $10.10 a lot better than $15. djean111 Jun 2014 #1
Then store sales would suffer. Ikonoklast Jun 2014 #8
Ya know something, Don. UncleYoder Jun 2014 #2
Yep. Forget that "support a bill" crap, lead by example; raise it! eom DonViejo Jun 2014 #7
Exactly jamzrockz Jun 2014 #10
I love Costco! I just got 5lb of coffee WhiteTara Jun 2014 #20
Good. Now, how about a bill requiring full healthcare benefits for all workers. 4lbs Jun 2014 #3
fwiw, a lot of mickey d's in the city pay more than that anyway. mopinko Jun 2014 #4
True jamzrockz Jun 2014 #11
Maybe all the bad publicicy samplegirl Jun 2014 #5
Their update (response from McDs) is telling. bluedigger Jun 2014 #6
Yeah, screw that. Any comment on how they've managed to make a greater profit by not having minimum okaawhatever Jun 2014 #21
That one's gotta piss off the GOP. tofuandbeer Jun 2014 #9
So, just increase your employees salary asshole. progressoid Jun 2014 #12
Bingo! rurallib Jun 2014 #18
Not surprising as retail sales Harmony Blue Jun 2014 #13
Why is he afraid to just go ahead and pay his people more? liberal N proud Jun 2014 #14
He is afraid raising his prices to pay for it will make more people eat at Burger King and Chick-Fil okaawhatever Jun 2014 #22
Or he could raise the wages without raising the prices and take a little less profit! liberal N proud Jun 2014 #23
Profit margin is usually less than 10% Sgent Jun 2014 #24
Good Yo_Mama_Been_Loggin Jun 2014 #15
Oh, well, how fucking MAGNANIMOUS of them. Arkana Jun 2014 #16
I'll believe it when McDonald's independently pays its workers $10.10 per hour. JDPriestly Jun 2014 #17
To quote Albert Einstein: Manifestor_of_Light Jun 2014 #19
To everyone saying he should just do it without a raise in the minimum wage: Hosnon Jun 2014 #25

Ikonoklast

(23,973 posts)
8. Then store sales would suffer.
Thu Jun 5, 2014, 11:31 AM
Jun 2014

You just can't cut hours without it impacting your business, you schedule based on demand projections and sales per man hour.

When there is a twenty minute wait to get a cup of coffee and a biscuit because the store owner doesn't have enough staff to service the customers, most people would just go elsewhere.

You still need enough employee hours scheduled to cover when your customers come in to your store.


Of course, the owner can always scream at what employees he has left to work even faster than 100% effort, but in a short time he will have neither employees to yell at or a store in which he can yell at them as he loses sales and goes out of business.

 

UncleYoder

(233 posts)
2. Ya know something, Don.
Thu Jun 5, 2014, 10:47 AM
Jun 2014

You don't need a fucking bill passed to pay your workers a living wage.
How about setting an example for the rest of the assholes and lead for once.

 

jamzrockz

(1,333 posts)
10. Exactly
Thu Jun 5, 2014, 12:33 PM
Jun 2014

Costco didn't wait for legislators to pass a bill. They just did it and they are kicking wallmart's ass.

WhiteTara

(29,676 posts)
20. I love Costco! I just got 5lb of coffee
Fri Jun 6, 2014, 05:05 AM
Jun 2014

shipped to me with no shipping fee; great price and fab coffee. Between my beginning to produce garden and mail order food, little by little I'm weaning myself from grocery stores.

4lbs

(6,756 posts)
3. Good. Now, how about a bill requiring full healthcare benefits for all workers.
Thu Jun 5, 2014, 10:48 AM
Jun 2014

Yes, that includes those that somehow only get to work 30 hours a week.

mopinko

(69,806 posts)
4. fwiw, a lot of mickey d's in the city pay more than that anyway.
Thu Jun 5, 2014, 10:52 AM
Jun 2014

in the big city minimum wage doesnt really get you much. most of them around here might start you there, but they move you up quick if you are any good at all.

so, he is leveling his own playing field here more than you might think.

 

jamzrockz

(1,333 posts)
11. True
Thu Jun 5, 2014, 12:36 PM
Jun 2014

I remember working for burger king in the 2004 and they started you at $7.80 which was above the minimum wage and after 6 months you got another 50c raise.

The not so funny part is that I talked to my old manager and they still start their new employees at $7.80 and 50c raise after 6 months just like they did 10 yrs ago.

bluedigger

(17,077 posts)
6. Their update (response from McDs) is telling.
Thu Jun 5, 2014, 10:57 AM
Jun 2014

"Additionally, we believe that any increase needs to be considered in a broad context, one that considers, for example, the impact of the Affordable Care Act and its definition of “full time” employment, as well as the treatment, from a tax perspective, of investments made by businesses owners.”

"You can have more money if you lower our tax rates and redefine full time employment" is what I get out of that.

okaawhatever

(9,453 posts)
21. Yeah, screw that. Any comment on how they've managed to make a greater profit by not having minimum
Fri Jun 6, 2014, 12:37 PM
Jun 2014

wage keep pace with inflation for all these years? Yeah, didn't think so.

rurallib

(62,346 posts)
18. Bingo!
Thu Jun 5, 2014, 04:20 PM
Jun 2014

Mickey D could make a policy that by some date (say a year from now) all stores will pay $10.10/hr or risk losing their franchise.
I am sure if they wanted to they could figure out a way.

liberal N proud

(60,302 posts)
14. Why is he afraid to just go ahead and pay his people more?
Thu Jun 5, 2014, 02:22 PM
Jun 2014

Is he afraid the employees will all quit so they can go to work at Chick-Fil-A for less?

okaawhatever

(9,453 posts)
22. He is afraid raising his prices to pay for it will make more people eat at Burger King and Chick-Fil
Fri Jun 6, 2014, 12:38 PM
Jun 2014

A. I doubt McDonalds will be the industry leader on this one, but if they don't fight it with their billions of dollars that will help too.

liberal N proud

(60,302 posts)
23. Or he could raise the wages without raising the prices and take a little less profit!
Fri Jun 6, 2014, 01:16 PM
Jun 2014

Now that's a concept, one that the greedy bastards will never allow to happen.

I don't eat at McDonald's because of the prices, I don't eat at McDonald's because the food and service suck!

Pay the people and maybe both will improve!

Sgent

(5,857 posts)
24. Profit margin is usually less than 10%
Fri Jun 6, 2014, 02:43 PM
Jun 2014

in a McDonald's, with wages being about 30% of sales. Raising the wages by 50% without raising prices means they go from a profit of 10% to a loss of 5%.

Arkana

(24,347 posts)
16. Oh, well, how fucking MAGNANIMOUS of them.
Thu Jun 5, 2014, 02:24 PM
Jun 2014

Toss a few coins at the poors and pretend you're being charitable.

JDPriestly

(57,936 posts)
17. I'll believe it when McDonald's independently pays its workers $10.10 per hour.
Thu Jun 5, 2014, 02:43 PM
Jun 2014

Here is what is wrong with companies like McDonald's. They support advertising and organizations that vilify and complain about government regulations, but they can't take the initiative and do what they know is right for their employees, customers and the country without regulation.

That's a character flaw -- when you can't bring yourself to do what is right without somebody forcing you to do it.

 

Manifestor_of_Light

(21,046 posts)
19. To quote Albert Einstein:
Thu Jun 5, 2014, 06:36 PM
Jun 2014

"If people are good only because they fear punishment and hope for reward then we are a sorry lot indeed."

Hosnon

(7,800 posts)
25. To everyone saying he should just do it without a raise in the minimum wage:
Fri Jun 6, 2014, 03:22 PM
Jun 2014

Competition is the problem. If McDonald's does it, they are at a competitive disadvantage if their competitors don't also do it. But if everyone is required to do it, there is no relative competitive disadvantage.

It's similar to Republicans who say anyone who wants higher taxes should just send more money in.

Some things only really work when everyone does them.

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