#1 Where McDonald's wages start near $15 an hour (Australia)08-07-2013, 02:43 PMScoff at striking fast-food workers' demands for $15 an hour all you'd like, but one chain is already paying that relatively high minimum wage.
Is it a boutique burger joint in Michigan or Oregon that serves up $5 sandwiches? Nope. It's a tiny little outfit that calls itself McDonald's (MCD -0.15%), and it still turns a tidy profit in high-wage countries around the globe despite paying workers almost double what it pays American staffers.
The Atlantic reports that not only does McDonald's pay its Australian workers the equivalent of $14.50 an hour -- or double the U.S. minimum wage -- but Australia's Fair Work Commission just hammered out a deal between the company and its employees that guarantees workers up to a 15% raise by 2017. That's in a country where most McDonald's workers are already making more than the minimum to begin with.
That should confirm the fears of Americans already cautious about what a Big Mac would cost if worker wages increased, right? After all, that stack of beef patties, sauce, cheese, lettuce, onions, pickles and bread costs more than $1 extra in Western Europe, where McDonald's has to pay workers in France a $12 minimum wage, according to The New York Times.
In truth, McDonald's only wishes its fortunes were as great in the U.S. as they are in Europe. It earns far more revenue there than it does here, despite wages in Europe accounting for roughly 45% of the cost of its food, compared with 25% to 35% in the U.S. In Australia, meanwhile, customers are paying 6 cents to 70 cents extra per Big Mac.
So how does McDonald's survive in such high-wage environments? Much like in the U.S., it plays the game. In Australia, minimum wage for 16-year-old workers is only $8, which gives McDonald's incentive to higher younger workers. It also squeezes more productivity out of workers and does away with little redundancies like cashiers, who are replaced in certain instances by touchscreens.
Higher prices, less adult employees (kids have a lower min. wage), and fewer jobs including the elimination of cashiers.
All the price of a "living wage" law.
08-08-2013, 12:30 AM
It's Australia....things are more expensive there than here. For example, lets look at Games Workshop, the company that produces models for Warhammer Fantasy and 40,000.....
Here in the US a box of Necron Warriors (the army I play) sells for $36.25. However, in Australia, that very same box that costs me $36.25 costs the Australian hobbyist $55.00.Solve a man's problem with violence and help him for a day. Teach a man how to solve his problems with violence, help him for a lifetime - Belkar Bitterleaf
08-09-2013, 01:27 PM
I like the idea of a lower minimum wage for those ages 16-17, at least in the fast food industry or retail, as long as we leave the rest of our child labor laws intact to protect companies from over-using youth workers.
I'm sure there is a downside to the idea, but the kids I work with can't find jobs anymore because they have to compete with adults to get jobs at McDonalds. And my kids want jobs, badly.
08-09-2013, 02:00 PM
- Join Date
- Mar 2010
Here's an article about price differences.
- Join Date
- Mar 2010
08-09-2013, 05:26 PM
One problem is those under 18 are not allowed to do some tasks inside the restaurant due to safety laws. I know one chain that would not hire anyone under 18 unless they absolutely had to, due to the fact they had a meat slicer for roast beef.
08-09-2013, 11:04 PM
Sic hacer pace, para bellum.
Sent from my android.--Odysseus
Sic Hacer Pace, Para Bellum.
Before you can do things for people, you must be the kind of man who can get things done. But to get things done, you must love the doing, not the people!
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