McDonald’s (NYSE:MCD) employees want more, more, more, as evidenced by protests that erupted Monday in New York as fast food workers campaigned for minimum pay of $15 per hour, a far cry from the $7.25 mininum wage employees are currently receiving.
And while the fast food giant has warned critics in the past that higher wages will bring a higher priced Dollar Menu, a new report from the University of Kansas, highlighted by Think Progress, illuminates how this assertion is not the whole truth.
McDonald’s has repeatedly come under fire for its minimum wage practices but has been under more scrutiny this summer after it was reported that the company was offering its employees a new budget calculating tool purposed to help them manage their wages. This seemingly good idea ended up doing McDonald’s more harm than help, because its miscalculations and offensive underestimates ended up enraging critics even more.
Now, a new report from the University of Kansas comes at just the right time for McDonald’s employees to collectively stand up and walk off the job in places like New York, Chicago, St. Louis, Detroit, Milwaukee, Kansas City, and Flint, Michigan. The report contends that the price of a Big Mac would only rise 68 cents if the fast food giant granted its minimum wage workers their requested $15 an hour. For the same increase, CEO Don Thompson could also see a doubling of his salary from $8.7 million to $17.5 million.
This paltry 68 cents proves that the requested increase in minimum worker wage would mean very little for the average McDonald’s consumer, despite what the company warns. While the Dollar Menu’s name would need a little tweaking, and a Big Mac would demand $4.67 instead of the current $3.99, very little else would change. And what’s even better: if the CEO doesn’t demand a salary increase to match the minimum wage workers’, the effects of the wage raise would be even less conspicuous.
So, as it turns out, raising these current unlivable wages isn’t as damaging to consumers as McDonald’s likes to pretend, at least according to the University of Kansas. Nevertheless, the fast food company is notorious for resolutely standing its ground, no matter what the case. Only time will tell if it’ll be convinced to budge.