McDonald’s agrees on union deal

4 December 2006

Media release

McDonald’s agrees on union deal

McDonald’s Restaurants NZ Ltd has agreed to a collective agreement with the Unite Union.

The collective agreement includes the following:

1. As at 4 December 2006, minimum hourly starting rates are $8.40 for employees aged under 18 years, and $10.25 for those aged 18 years or over, which are rates that McDonald’s is already paying.

2. Six month minimum rates are introduced from 4 December with employees aged under 18 years receiving $9.50 an hour, and those aged 18 years or over paid at least $10.75.

3. From 5 March 2007 minimum starting rates will increase to $8.60 and $10.75 respectively, with six month rates remaining at $9.50 for those aged under 18 years and increasing to $11.25 for those aged 18 years or over.

4. From 5 March 2007 employees unaffected by point 3 above will receive a minimum 4% increase.

These and all pay rate changes remain subject to a satisfactory performance rating. Employees on Individual Employment Agreements will receive similar minimum rates and increases from 4 December.

Negotiations between McDonald’s and the Union have been taking place for approximately 18 months.

“We are absolutely committed to our 6000 employees nationwide. We are also committed to the bargaining process and have been working through it in good faith,” says Evelyn Gates, Director of Human Resources, McDonald’s Restaurants NZ Ltd, and a former McDonald’s restaurant employee. “These rates are minimums with many of our restaurants continuing to pay above them.

“For many of our staff we are their first employment experience and this is a role we take very seriously with recognition for our efforts from the Hospitality Standards Institute as Supreme Winners in their annual awards in 2005.”

The company will continue to provide opportunities within its business for young workers (both school students and school leavers). Participating restaurants offer NZQA qualifications to staff via the company’s Crew Certificate in Operations training programme and the OASIS programme (Offering Assistance to Students in Schools), which is designed to assist school students looking to experience hospitality and gain additional unit standards.

Ms Gates adds: “Training our staff is a significant investment, one we readily make to ensure the continued success of our business and to develop our future through our people.”

ENDS

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