McDonald's Admits in Private That Strikes Have Hurt Its Bottom Line, and It May Have to Raise Wages

[xchrom]

http://www.alternet.org/corporate-accountability-and-workplace/mcdonalds-admits-private-strikes-have-hurt-its-bottom-line

Worker strikes and social media shaming “can adversely affect us,” and “increasing public focus” on “income inequality” could spur higher wages, fast food giant McDonald’s acknowledged in an annual report filed Tuesday with the Securities and Exchange Commission.

Under “Risk Factors and Cautionary Statement Regarding Forward-Looking Financial Statements,” the McDonald’s corporation writes that “the quality of our execution” of the company “Plan to Win” “depends mainly” on a series of factors, among them “The impact of campaigns by labor organizations and activists, including through the use of social media and other mobile communications and applications, to promote adverse perceptions of the quick-service category…or our brand, management, suppliers or franchisees, or to promote or threaten boycotts, strikes or other actions…” The company also lists “The impact of events such as boycotts or protests, labor strikes and supply chain interruptions (including due to lack of supply or price increases) that can adversely affect us or the suppliers franchisees and others…whose performance has a material impact on our results…”

In a subsequent list, under “key factors that can affect our operations, plans and results in this environment,” McDonald’s describes a “long-term trend toward higher wages and social expenses in both mature and developing markets, which may intensify with increasing public focus on matters of income inequality…”

McDonald’s did not immediately respond to a request for comment. As Salon has reported, workers backed by the Service Employees International Union have mounted an unprecedented challenge to the industry, including a wave of one-day strikes which grew from a single-city November 2012 effort in New York to a December 2013 walkout which organizers said involved thousands of total workers in a hundred U.S. cities. Asked beforehand about that action, a McDonald’s spokesperson e-mailed that the company and its franchisees “are committed to providing our employees with opportunities to succeed.”

[Demeter]

1. I'll be listening for that Last Trump

good morning, X! This could be the start of something sane!

[xchrom]

2. good morning, miss demeter! i certainly hope so.

these workers didn't wait for others to do the work for a better life.

they took it head on.

[Laelth]

3. Good. k&r for labor. n/t

-Laelth

[ReRe]

4. K&R

"The revolution will not be televised." People in this country, from employees to customers, just may be waking up. I would call this a definite victory for labor. All I can say is congratulations and keep it up!

[mtasselin]

5. Hope

I hold out hope that the worm is starting to turn, our society will not survive on minimum wage jobs.

[riqster]

6. The workers are finally winning some battles.

Let's hope it continues!

[marble falls]

7. If they can't change because its the right thing to do, then they can change for expediancy.

[illachick]

8. Good

Instead of giving worthless financial advice that doesn't apply to like 90% of their workers, give them their damn money! Can't pay bills with advice. This hits a little close to home as a former Mickey D's worker who may end up back at Mcds after college, lol. It's good someone is at least listening but they'll only listen if we make noise.

[rurallib]

9. MickeyD can't off shore these jobs

and I get the impression that there isn't a line trying to get hired there anymore. Maybe they will be forced by "the market" to pay more

Good to hear that there is some backlash to their policies. Sounds like Walmart is getting some backlash also.

[Earth_First]

13. As recently as 2009 McDonald's and others outsourced drive-through orders...

...to several call center operations.

I'm not sure if this is still a practice that is being utilized in 5 years later, however they are trying it.

I'll poke around for an update.

[rurallib]

15. I stand corrected and amazed

at the lengths they will go to to screw American workers.

[Dark n Stormy Knight]

22. But they could import some foreign workers, put them up an cheap dorms and farm them out to

high density McD areas. Why the hell not?

Wow. I am getting more and more cynical.

[marmar]

10. k/r

[myrna minx]

11. K&R n.t

[niyad]

12. "we are committed to providing our employees with opportunities to succeed"--yah, just as long

as it doesn't actually cost us any money or time or effort.

[City Lights]

14. Poor dears.

[nadinbrzezinski]

16. Where did I put it? It's easy to misplace

Ah here

[frylock]

19. what do you suppose they pay at the Krusty Krab?

[nadinbrzezinski]

20. Bellow minimum wage of course, but in mussels.

[Systematic Chaos]

21. That .gif entitles you to a grand prize of not one, but THREE interwebz.

[HuckleB]

17. Recommended!

[xchrom]

18. ...