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Update on McDonald’s moves on behalf of its people

 

McDonald’s UK chief executive Paul Pomroy said :

McDonald’s UK has used flexible contracts for 40 years and they’ve been positive for our people. Employees know their hours in advance. Students and working mums and dads value the flexibility we provide for study and childcare.

But over time people’s needs change and the financial landscape has changed. We listen to our people and a small but growing number of employees tell us that fixed hours would help them get better access to financial contracts such as a car loan or for a mobile phone.

We recently ran a trial across three restaurants in Merseyside where we offered all 246 hourly paid staff the chance to switch to contracts with minimum guaranteed hours. The overwhelming majority, 83%, chose to stay on their existing flexible contracts because they value the flexibility they afford them.

But for the 17% who opted to switch we want to test how we deliver this at scale for our people. I’ve now extended the trial to a further six restaurants to test this during our busiest times over the summer holiday.

I believe that offering a choice between fully flexible contracts and ones that offer minimum guaranteed hours will be popular with our people and meet their needs and we will report back in the autumn on the next steps.

Being progressive on contracts also makes good business sense. Motivated and committed restaurant teams are fundamental to our business and to the experience we deliver to our 3.7 million customers every day. And we’re making changes in our restaurants that mean our people are at the forefront of our business more now than ever before, from front of house to table service.

Those changes have helped us achieve 10 years of consecutive growth. We couldn’t have done that without our people – they are our most important asset and I am incredibly proud of them.

And thanks to the continued success, driven by this innovation and investment in our restaurants and delivered by our people, we are able to invest more than ever before in our restaurant teams. Since September we’ve increased pay for all our hourly paid employees by on average 10% and the vast majority of over 21 year olds are now paid £7 an hour or more – 40% of our employees are aged 21-25.  We’ve given the biggest pay rise – 14% - to our youngest employees aged 16-18.

I am particularly proud that this move is not at the detriment of any other area of the business.  We’ve been able to increase the premium paid to our overnight workers and maintain our competitive employee benefits package as well as continuing to offer training and development opportunities. And we’ve not passed this cost onto the customer either.

The £40 million we invest in training and development every year means we offer progression. For some, McDonald’s is a stepping stone to another job but for many we become a career.  Nine out of ten of our restaurant managers started as crew, and on average stay with us for 15 years. One in five franchisees and a third of my UK Executive team started out working in our restaurants. In recent weeks it has been great to see ex-employees from all walks of life - MPs, professional footballers, TV producers and many more - proudly talking about the experience and skills they developed at McDonald's. 

The experience of working at McDonald’s builds our people’s confidence. Where else can you progress to be a restaurant manager at 21 running a team of 70 people? It also builds their CV and skill set. We’re fortunate to be able to use our scale and expertise to help people from all backgrounds achieve qualifications that might have previously felt out of reach.

Our recent moves on pay and contracts come from listening to and backing our business’s most valuable asset: the 110,000 people that make McDonald’s.