Remember the Occupy Wall Street movement earlier this decade?
It was only a few years ago that cities were blanketed with makeshift tents and a mix of homeless, hourly workers and even execs protesting the widening gap between “the haves” and “the have-nots.”
Well, that fight for better wages has spun into picket lines in front of mega-retailers. And now, on the heels of Walmart, Target and others, McDonald’s is relenting after months of demonstrations in front of its Oak Brook, Ill.-based headquarters.
The home of the Big Mac and Happy Meals recently said it will raise average pay of roughly 90,000 U.S. hourly workers to about $10 an hour as of July 1, as well as unveil paid time o for part-time and full-time workers. The pay increase affects the company’s 1,500 company-owned QSRs and, observers believe, will put pressure on the chain’s 3,100 franchisees to respond in kind.
As a general principle, McDonald’s company-run eateries will pay at least $1 above locally mandated minimum wage, responding to pressure from labor groups who’ve pushed the Golden Arches to embrace a minimum $15 hourly wage. The company also was facing a potential April 15 wildcat strike among its thousands of workers.
“We’ve listened to our employees and learned that—in addition to increased wages—paid personal leave and financial assistance for completing their education would make a real difference in their careers and lives,” said Steve Easterbrook, McDonald’s president and CEO.
March may spell Madness for college hoops junkies and spring for those who felt frosted this past winter. However …
… It also chilled an otherwise promising labor market.
Manufacturing slowed, fewer homes were built and cheaper fuel prices failed to spark consumer spending. According to the Labor Department, the private sector in March produced only 126,000 new jobs, the feeblest performance since December 2013, which halted a 12-month streak of at least 200,000 new jobs per month.
Some economists suggest the news, while not optimal, could be worse. They argue that companies are generally hiring at a slower pace until they have more confidence in the economy. And that’s a good thing, right?
Could Tesla be growing up?
Palo Alto, Calif.-based automaker Tesla is seeing deliveries hit new highs even as lower gasoline prices persist.
First-quarter results soared 55% in year-over-year sales, according to the company, which is led by visionary Elon Musk. The company also revealed that it would introduce a new product this spring that was not a car.
Tesla Motors Inc.’s incremental growth is playing out internationally. Credit Suisse reported Tesla’s deliveries of its Model S car had spiked 1,000 units to 3,500.
Indicators
Bank Pay Gap Narrows
The divide between bank chief execs and workers continues to shrink. From a recent Wall Street Journal story: “The CEOs last year on average made 124 times the average worker at the banks, down 55% from 273 times in 2006.”
The news is important as the federal Securities and Exchange Commission fınalizes a rule that mandates all public companies report how much more their CEO made vs. the typical employee—a move that the nation’s top banks have vehemently opposed.
Microsoft Turns 40
On April 4, 1975, the world of computing changed. A bespectacled guy not old enough to legally drink launched a startup that would transform the world of communications.
Today, Bill Gates is 59 and worth $80 billion, and Microsoft is a staple in homes and offıces across the globe.
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