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McDonald’s Employee Wages: Can They Pay $15 An Hour? Short Answer Is Yes

McDonald's Employee wages

McDonald’s employee wages battle just took a turn in the employees’ favor. Analysts have been trying to figure out how much prices will have to go up to concede to the little guy’s demand for $15 an hour. Turns out, they wouldn’t have to change much at all.

The argument against raising wages to $15 an hour is that it would compromise the fast food giant’s low-priced menu options, and that the company would see a drop in profits because customers would be unwilling to pay more for the same food.

But this is B.S. according to University of Kansas research assistant Arnobio Morelix. Doubling McDonald’s employee wages across the board – meaning every minimum wage worker gets $15 an hour and even CEO Donald Thompson grabs an extra $8 million in yearly salary – would only cause the price of a Big Mac to increase by a measly 68 cents.

In other words, paying everyone from the counter clerks to top corporate management double what they earn now would make the Big Mac cost $4.67 instead of $3.99.

The only place on the menu where a significant difference would be made is the dollar menu. Items there would go up 17 cents.

For the study, McDonald’s 2012 annual report was reviewed by Morelix. It showed that only 17.1 percent of McDonald’s overall revenue goes toward salary and benefits. So for every dollar McDonald’s makes, only about 17 cents goes toward income and benefits for over 500,000 U.S. employees.

Thus, if executives wanted to cave to the demands of their workers and keep profits and expenses the same, it would need to increase prices by just 17 cents per dollar. Sure, a commons criticism of big business is that extra costs are always passed on to the consumer, but 17 cents more per dollar isn’t exactly a deal breaker for your fast food fix, is it?

What do you think of McDonald’s employee wages? Would you be comfortable paying an extra 17 cents on the dollar so that their workers can earn a livable wage?

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3 Responses to “McDonald’s Employee Wages: Can They Pay $15 An Hour? Short Answer Is Yes”

  1. Anonymous

    Considering the report would mean Corporate minimum wage employees, but McDonalds as well as many other large food chains are owned in large percent by franchisees, McDonalds only owns 20% of it's restaurants, 21% international, and 59% Franchise owned. This means the McDonalds you go to may be owned entirely by someone that grew up on the same street as you, and just pays a small percentage of it's revenue to McDonalds for rights to use the brand. You are not attacking the 1% here, you are waging war on your neighbor.

  2. Faye Gringe

    Everyone works hard. What would we do with the fast food workers, and people who work in housekeeping, and other low paid jobs? If they and others like them stopped working, they could shut the country down in no time, and then it would be no reason for you to go to work. They work just as hard as you do and they deserve a decent wage. Instead of begrudging them that, why not support them so that when you start getting the shaft, and you will, you will have other workers supporting you? Everyone wants to believe they are superior to fast food and other low wage workers. And that belief is how they divide and conquer workers and keep them at each other's throats, everyone fighting for crumbs from the rich bosses table. If a person works hard they deserve a living wage no matter what they do. What kind of world do we live in where we would almost starve someone because they didn't have a degree, or did jobs that most of us don't want to do, but would have a fit if they weren't done. Suppose garbage men stopped working. Do you think a well paid doctor would do much good, could fight off the disease that would run rampant? Without the garbage man, the Doctor's work means very little. I hope that you will think about this.

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