McDonald's plans to hire 50,000 workers. The jobs pay about $8 an hour. The CEO makes $17 mil. Reduce his pay?
Take a look at this quote from a news article:
“The thing that people forget is that if you want to spend $1 on food McDonald’s can’t have huge labor costs,” said Senatore. “So part of the strategy of keeping food prices low is that labor costs have to be kept low, too.”
The article makes it sound as if the cost of labor went up, then the prices would go up. And that might be true. But someone is obviously profiting disproportionately from low labor costs. Someone is taking it in the butt and it is the worker at McDonald's and that is all because the CEO consciously made sure that would happen. The CEO made $17 million in 2009. Think about what kind of a rotten contract his lawyers created so he can make thousands of times what his workers make. In other words, the workers are financially sacrificing a whole lot more to make sure the dollar menu stays around. The CEO sacrifices nothing. Why not reduce the CEO's pay to $1 million so the prices on the dollar menu can remain the same AND the workers can get paid a living wage. It will work out for everyone. The CEO can still be wealthy, the workers can get paid so they can live on a McJob, and the customer will be happy because he/ she can still get their food for for a dollar. It would work out well for everyone. And if lowering the pay of the CEO is not enough to make the wages of the workers rise, another thing that could be dipped into is the salaries of the other McDonald's executives who are making six and seven figures. The wages really would rise to an acceptable level. The workers of McDonald's work very very hard and I know this because I worked there for a few years. They work harder than almost everyone thinks. Working at a very busy McDonald's is hard work. They absolutely deserve the raise. In a just world, this would happen. So could this wage increase ever happen?
- 9 years agoFavorite Answer
I'm glad you asked that question. At least someone gets it.
Will it ever happen? No, unless there is a revolution. Should this happen? Absolutely.
In the 1970 the average pay of CEOs was approx. 40 times the pay of the average employee. Today that compensation is approx. 500 times.
Taking from the CEO is not a real solution obviously, but the CEO salary doesn't tell the whole story. Corporations like McDonald's hold cash reserves, pay off politicians (google McDonald's get Obamacare waiver), pay out stock and bonuses in the 100s of millions.
In other words the CEOs pay isn't going to change alot, but it is a part of the reason why workers make sub livable wages. Taken as whole and re configured McDonald's could significantly compensate workers better. Probably by $3000-$6000/year, which is considerable to someone making $16,000/year.
By comparison European CEOs receive about 1/4 the compensation of their American counterparts.
WHen you have a society of such wealth disparities like Russia, China, Brazil and the USA, that's correct we share the same wealth disparirties as these countries as well as many banana republics, you get eventual collapse. It is not good fro anyone to have this type of system and your question goes to the heart of many systemic problems in the USA.
- 9 years ago
Well, if people at McDonald's got substantial raises, then I imagine that people in more skilled jobs would also want raises and it would snowball. Then prices would rise across the board, and make it difficult for poor people to afford anything. So no, I don't think they should get more money. $8 an hour is, IMO, quite reasonable pay for the abilities one needs to be employed at McDonald's. A teenager with relatively little education and no specialized job skills can perform most of the work there. Higher pay should be reserved for jobs that require more education, experience, and specific skills that take time to develop. I used to work in a McDonald's too, and frankly it was the least skilled job I have ever held, required the least work, and deserved the least pay.
Of course the CEO gets tons more money than the employees. He oversees the entire operation, which is huge!
- 鬼Lv 69 years ago
$8 dollar is a good wage for the work that is been done.
And if people Stop eating at mc donalds and the like and start learn how to cook real food by themselfs Driving A bike instead of a car (if they live in the city) then this $8 an hour is a good wage.
But no people need to spend their money on BS. Things they neither need nor want. I get less then 8 dollar but i live a real good life. I can afford whatever i NEED i eat the finest foods drink good wines and smoke tasty tabacco. Plus i have travelled and lived around the world.
And all of that for LESS then 8 Dollar an hour.
Learning to cook is the greatest money saver ever.
Oh and having no friends and family helps too :)
- Anonymous9 years ago
I'm not defending these big salaries, I'm just pointing out the economics of the workers are not related to how much the executives are making....
Economically speaking, reducing the pay of 100% of the executives will have virtually no impact on the wages of the workers. It's a question of whether you want to just take their money away or not.
I don't like the inequality, but I'm being quite honest here. The money driving wages down has almost no relation to executive salaries, it's just a bad publicity issue. On moral grounds, they should consider whether their pay accurately reflects the morale they give their workers, and that I do agree with.
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McDonald's restaurants are independently operated. The franchise owners would want the extra profits instead of paying fry cooks more. People who own these restaurants don't make a lot of money out of it. If they had to pay more than $8, lots of them would try Wendy's or Burger King etc.... and the whole thing would start over. Or maybe Wendy's or Burger King etc. CEO doesn't make $17 mil and the employees only get $7.25
- Anonymous9 years ago
you are forgetting one thing.
the worker who says "would you like fries with that" doesn't have the same responsibilities as the CEO.
i run a small shop of about 10 employees. i couldn't imagine running a world wide business with millions unless i was paid very well.
- Anonymous9 years ago
He is the CEO and his actions will determine whether the company thrives or fails. His actions will lead to investors having a higher return which will lead to a more comfortable retirement.
His actions will lead to college students able to work.
His/her job is very important, and he/she is the most important employee in the company.
- YirmiyahuLv 79 years ago
$17 million minus $16 million = $1 million
$16 million / 50,000 = $320 per worker PER YEAR.
$320 per year is less than $30 / month
I'm sure the workers would welcome an extra $30 per month but I fail to see how this is significant.
Why??? The workers can quit at anytime.