McDonald’s workers strike for first time in the UK

7 years ago - Published in Finance, Fundamental Analysis

McDonald’s faces its first strike since it opened in the UK in 1974, as well as protests by unions and the public at several restaurants over pay and working conditions.

Staff in Cambridge and Crayford, south-east London, walked out in a row over the use of zero-hours contracts and "inexplicably" low pay.

The Bakers, Food and Allied Workers Union (BFAWU) said the strike was being well supported. Members of other trade unions joined early-morning picket lines outside the two restaurants, while Labour leader Jeremy Corbyn offered his backing.

The workers are calling for a wage of at least £10 an hour and more secure working hours.

The fast-food chain has been one of the biggest users of zero-hours contracts in Britain, although it has recently started offering workers the option of moving to fixed hours.

McDonald's, which employs around 85,000 staff in the UK and one million worldwide, announced in April that workers would be offered a choice of flexible or fixed contracts with minimum guaranteed hours, saying that 86% have chosen to stay on flexible contracts.

A company spokesman said: "We can confirm that, following a ballot process, the BFAWU has indicated that a small number of our people representing less than 0.01% of our workforce are intending to strike in two of our 1,270 UK restaurants.

And the spokeman underlined: “As announced in April this year, together with our franchisees, we are providing our people with the option of a guaranteed-hour contract, and all restaurants will have these contracts in place by the end of 2017.  He said McDonald’s and its franchisees had awarded staff three pay rises since April 2016, which increased the average hourly pay rate by 15%. 

McDonald’s says all its hourly pay rates are above the national living wage. For under-18s this is £5.42, for 18- to 20-year-olds it is £6.84, for 21- to 24-year-olds the rate is £8.13 and for over-25s it is £8.31.

The spokesman added: “We are proud of our people at McDonald’s. They are at the heart of all we do and we work hard to ensure that our teams are treated fairly. Our internal processes underpin that commitment.”