Streams

Fast Food Pay for Workers and CEOs

Wednesday, May 21, 2014

Protesters rally outside of a Wendy's in support of raising fast food wages from $7.25 per hour to $15.00 per hour on December 5, 2013 in the Brooklyn borough of New York City. (Andrew Burton/Getty)

As New York City comptroller, Scott M. Stringer votes the shares held in NYC's pension funds. He explains his plan to vote against high executive pay at the McDonald's Corp. annual meeting on Thursday in protest of the low hourly wages of fast food workers.

Guests:

Scott M. Stringer

The Morning Brief

Enter your email address and we’ll send you our top 5 stories every day, plus breaking news and weather.

Comments [5]

jenn2012 from bklyn

I think all McDonald's are franchises. (I'm pretty sure Chipotle is part of the McDonald Corporation but I'm not sure how they operate. I don't think McDonald's, the brand/corporation actually employs any servers or cashiers. )

The franchisees who probably sank their life savings into running a McDonald's should get a reduction in the myriad of fees they pay to McDonald's and pass some of that onto their employees.

No doubt the CEOs of McDonald's and Chipotle are nice enough & smart enough people, but they're selling an irresistible combination of fat+sugar+salt not broccoli. I don't really get why heads of these types of companies make so much money, does it really take a genius to peddle products that everyone already loves?

May. 21 2014 01:21 PM
Sheldon from Brooklyn

@Jeb,

No they are not. If they were, the likes of McDonalds would have done it already.

May. 21 2014 10:14 AM
Joe Mirsky from Pompton Lakes, NJ

Practical Money Skills
Can’t pay your bills with your McJob? Get financial advice from the boss. McDonalds has a brochure for its employees, Practical Money Skills that has a budget journal to help you figure it out.

The brochure is “brought to you by Visa Inc. and Wealth Watchers International (“to help people spend less money than they make.”) The chart below is recreated from the brochure.

Let’s do the math. $2060 take home pay would be $13.88 an hour ($2387 gross) for two forty hour a week jobs according to Bloomberg. McDonalds pay for its crew is $7.88 according to Glassdoor.
McDonalds CEO Don Thompson was paid $13.8 million in 2013, $6900 an hour (40 hour week with a 2 week paid vacation.*)

As for that $20 a month for health insurance, McDonalds cheapest health insurance plan was $56 a month and the coverage “pretty terrible”, according to a 2010 CNN article.
* “After three years of employment, crew that have averaged 30 hours per week in the prior 12 months are eligible for 5 days of paid vacation. For each year of employment after that, employees will earn an extra day until a total of 10 days are accumulated.”

Sample Monthly Budget
Monthly Net Income
Income (1st job) $1105
Income (2nd job) 955
Other Income
Monthly Net Income total $2060

Monthly Expenses
Savings 100
Mortgage/Rent 600
Car Payment 150
Car/Home Insurance 100
Health Insurance 20
Heating 50
Cable/Phone 100
Electric 90
Other 100
Month;y Expenses Total 1310

Monthly Spending Money 750
Daily Spending Money Goal
monthly spending money divided by 30)

Copyright © 2014 Joseph Mirsky

May. 21 2014 10:12 AM

Well meaning...bad move. What happens with someone that was making $7.50, worked hard and now is making $12.00. Do they get a raise that is proportional to what you just bumped minimum payees up to? Brian what do you pay your interns?

May. 21 2014 10:12 AM

Fast food jobs are easily subject to automation, and McDonalds or a successor company will eliminate all human jobs in favor of a mostly automated food assembly line. Redistributing the productivity increases that power the economy is a valid governmental role, and minimum wage is a valid remedy, but economic reality will force people out of these roles.

May. 21 2014 10:11 AM

Leave a Comment

Email addresses are required but never displayed.