Wednesday, July 31, 2013

Even Catholic Publications Fell Hook Line and Sinker For McDonald's Employees Salary Story

I saw a huge problem as soon as I read the Huff Post piece yesterday Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]  

First I don't think it occurred to the person that wrote that article that McDonald's don't own most of their own restaurants ! That is the McDonalds franchisors are separate businesses which pay a fee to McDonalds Corp and are responsible for their own payroll.

Just One Minute goes into this and other problems at  McDonalds Math, Or, Latest Lib Talking Points Fail

A person at U.S. Catholic got on the bandwagon at  Hamburger bill: Will the cost of the Big Mac go up?    

Again there is an assumption it appears that most of these stores are own by the big bad ole corporate giant.

Now I am not saying there is not a case for raising the minimum wage in this country but Catholics and others should take note things might not come out as they want.

As  David Bernstein stated

Let’s say McDonald’s decided to double all its salaries, so that the entry-level wage became $16 an hour instead of $8 an hour. Why would McDonald’s continue to employ their $8 an hour workers when instead they could hire “better” workers who are worth more? (And those of you who think that the skills, linguistic abilities, experience, intelligence, etc. of fast-food workers makes no difference in service don’t eat in McDonald’s much.) .

That is a pretty hard truth but I think its apt I have had good service a the chain no doubt. But as a general rule as ob person commenting said X(Intelligence) + Y(Language Skills) + Z(Experience)= service. As X,Y and Z increase so does service.

I mean if I raise salaries up to 16 dollars an hour I might not only be able to get people that are more well spoken but heck might even speak English and Spanish ( or pick your language depending on the changing demographics of the area .!. Which might be a benefit in areas where immigration is having an impact.

In other words why would they stay with the same employees or same employees that finds themselves having to get these jobs.

I think there is important wage argument and discussion  via Social Justice to have here. But as usual the reality is much more complicated.