Where McDonald's wages start near $15 an hour
The fast-food chain already pays Australians what striking US workers want. It just requires some business adjustments and buy-in from consumers.
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), 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.
More significant, however, McDonald's can't just contently exist as a low-end feeding trough in these countries. With higher prices come higher expectations, which is why Australians were getting McCafe and espresso in 1993 while Americans were chowing down on Dino-sized Quarter Pounders that were just Double Quarter Pounders with a Jurassic Park movie tie-in.
McDonald's can pay its American workers the same wage as their foreign counterparts. It just has to hope that the same American consumers who shunned espresso, wraps and Angus burgers and prompted the company to consider all-day breakfast will change their minds and help pick up the tab.
One thing that was failed to mention is that the cost of living in Australia is far far more worse then America. In 2009 the Avg cost of lettuce (1 head) for the USA was $1.67 Australia $2.44. A .33 littler bottle of coke was $1.67 in the USA and $3 in Australia. AVG. Apartment cost (To buy, per square meter) in the city for USA 1842.74 while Australia was 7,500. So while people in Australia are getting paid more money they really may ne getting even less then us since it cost at least twice as much to live there
In oil boom country (Williston N.D.) there is a severe shortage of workers for everything. The McDonalds here pays $15 an hour to start. The WalMart pays about $18 an hour. All of this extra cost is passed along to the customers.
The prices for everything here is far higher than anywhere else.
The McDonals is about 20% higher than back home in Tampa. WalMart is about 10% higher.
Yay, lets all make $15 an hour so we can then spend our new found income to pay for all of the price increases that will be right behind propping up those higher wages. I mean, where do people think the money to pay employees comes from? It comes from a companies SALES.
Whatever happened to people being happy to have even an entry level job? Working at McDonald's used to be a spring board for people to get some work experience and go on to bigger and better. Be thankful for the job you have been given and that some one gave you a chance and paid you for it. Use it to your advantage to advance yourself. Non skilled entry level jobs are worth minimum wage.
Do you know what happened when I got sick of making $7.25 an hour. I worked harder and got a raise. Then I moved onto the next restaurant and worked hard and became an hourly manager. I worked harder and became a asst. manager, and kept working until I became a G.M.. I have changed jobs 3 times since I was 18 years old. I have no college education and I make $68,000 a year as a G.M. for a restaurant, and I work 56 hours a week. I lived in Australia from the time i was 18 until I turned 24, then I moved back to Ohio and started a job making $7.25 an hour.
I was lucky enough to be living with my uncle in Australia and I know how much everything cost. It is just unreal. Moving back to the states and shopping was just amazing. The cost of everything here is so much cheaper. SO SO SO SO much cheaper....
I worked hard to get where I am... Anyone can do it, I am nothing special, except I decided I would not live off the government and I would make my own way..
The major issue facing the United States is there is an abundance of un skilled workers available. If you quit your job taking orders at a fast food restaurant, you can easily be replaced. It is all about supply and demand, why pay someone $15 an hour when I can pay someone $8 an hour to do the same exact job?
Problem number one with the picking up the tab is that the American consumer has been trained to look to them for low price for their product.
Problem number two in my opinion is that generally there is a lot of mistakes the service, for example in drive through I will order a 20 piece Mcnuggets, and get a 10 piece instead, and this was not a one time event.
Okay, minimum $15 for the manager and assistant manager, everyone else is a touch screen or a teen. Of course they overlook the fact that the cost of living there is double what it is here, on average, And this is what we need in this country right now, more demands from the O.W.S. fruitflies of higher wages for less and less work, if any at all. If you're over 23 and working at McD's, and your not a manager, good chance your job will be gone. If you're there now it is because you can't find anything else, and you want to make demands !!!!
Occupy Wall Streeters;
Time to grow UP people and take some responsibility for your own situation. Society OWES you NOTHING. Earn your own way or crawl off and DIE.
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With sales suffering as a string of novelty menu items missed the mark, the fast-food chain's latest offering is a good old-fashioned sandwich with bacon.
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