Unite Union Declares SuperSize Victory against Fast Food Giants

Press Release Unite Union
4 December, 2006, 4pm

Unite Union Declares SuperSize Victory against Fast Food Giants

After months of negotiation Unite Union has reached a breakthrough collective employment agreement with fast food giant McDonald’s, after signing an agreement earlier this year with Restaurant Brands (KFC, Pizza Hut and Starbucks) and Red Rooster.

“Negotiations have been long and slow but after persistence with our SuperSizeMyPay.com campaign we have finally seen a breakthrough with McDonald’s in November and Burger King has realised it must follow suit,” said Unite national secretary Matt McCarten.

“The collective agreements that these companies and their franchisees have entered into see significant moves across the country on youth rates and some instances pay rises of up to two dollars per hour.

“Starting tomorrow McDonald’s workers under 18 will receive an 11.6 per cent increase after six months and over 18 year-olds will receive a 2.7 – 15.7 per cent increase after the same time period.

“McDonald’s have also promised union members a bonus and will implement a minimum shift, and have committed to abolish youth rates. Restaurant Brands and Red Rooster have already promised to eradicate youth rates.

“We are 90 per cent there now with Burger King and hope to tidy up the contract this month which will mean we will have signed contracts with three of the major fast food employers in New Zealand – McDonald’s, Restaurant Brands and Burger King - a move that is unprecedented anywhere in the world.

“Burger King, whose employees are largely young workers, has agreed to shift the youth rate next year from $8.35 to $9.00 - an increase of 7.8 per cent. Adult crew workers will receive a 7.3 per cent increase.

“Burger King’s wage proposal is well below Restaurant Brands ($9.23) and McDonald’s ($9.50 after six months) and is not an offer Unite is willing to accept. We will continue to negotiate with Burger King to improve this offer and settle the last remaining issues so we can sign a collective agreement. Hopefully this will occur before Christmas.

“In the meantime we will be conducting a public campaign to put pressure on Burger King to join the other fast food companies in settling a collective agreement.

“Red Rooster has agreed to no youth rates, more secure hours, minimum shift lengths, and an overtime rate for Unite members.

“These agreements are a major achievement for the low paid workers in the casualised fast food workforce that is renowned for its hostility towards unions.”

Tables.

Role Current Rate New Rate Percentage
Under 18 Training Rate $8.40 per hour (No change) n/a
Under 18 after 6 months $9.50 per hour (Extra $1.10) 11.6%
18 and over Training Rate $10.25 per hour (No change) n/a
18 and over after 6 months $10.75 per hour (Extra $0.50) 4.9%
Host/Hostess Appropriate crew rate (Extra $0.30) n/a
Crew Trainer Appropriate crew rate (Extra $0.30) n/a
Maintenance person Appropriate crew rate (Extra $0.65) n/a
Shift Assistant Appropriate crew rate (Extra $0.65) n/a
Swing Manager Appropriate crew rate (Extra $1.30) n/a
Certified Swing Manager Appropriate crew rate (Extra $2.00) n/a

Other changes include:
- A one-off bonus payment to Unite members
- A minimum shift entitlement of three hours
- Rights of staff to a union notice board
- All new staff will receive a Unite membership pack
- Movement towards elimination of youth rates

Role Current Rate New Rate Percentage
Youth $8.35 $9.00 7.8%
Crew Adult $10.25 $11.00 7.3%
Crew – Guest Service $ no set rate $11.50 n/a
Crew - Elite $ no set rate $12.00 n/a

Other changes include:
- Increased rest breaks from 10 to 15 minutes
- Supplied workers uniforms to staff working three or more shifts
- Transport policy for young workers to travel home safely

Role Current Rate New Rate Percentage
Youth $8.40 $ no change n/a
Crew Adult $10.25 $ no change n/a

Other changes include:
- Security of hours – extra hours will be offered to union members before new staff are hired
- Minimum shift length of three hours
- Time and a half overtime rate for Unite members after eight hours of work
- Longer rest breaks for Unite members from 10 to 15 minutes
- Long service leave
- Union access to work sites
- No youth rates

Classification New Rate Old Rate Increase Percentage
KFC
15 years old (Base) $9.23 $7.13 $2.10 29.5 %
15 (Gold Star) $9.58 $7.40 $2.18 29.5 %
16 (Base) $9.23 $8.08 $1.17 14.5 %
16 (Gold Star) $9.58 $8.39 $1.19 14.2 %
17 (Base) $9.23 $8.55 $0.68 8.0 %
17 (Gold Star) $9.58 $8.87 $0.71 8.0 %
17 (LAS) $11.18 $9.37 $1.81 19.3 %
17 (Supervisor/Sole Charge) $14.68 $11.87 $2.81 23.7 %
18 + (Base) $10.75 $9.50 $0.75 7.9 %
18 + (Gold Star) $10.64 $9.86 $0.78 7.9 %
18 + (LAS) $11.18 $10.36 $0.82 7.9 %
18 + (Supervisor/Sole Charge) $14.68 $12.86 $1.82 14.2 %

Pizza Hut
15 years old (Base) $9.23 $6.89 $2.34 14.5 %
15 (Gold Expert) $9.58 $7.14 $2.44 34.2 %
15 (LAS) $11.39 $7.40 $3.99 53.9 %
15 (Supervisor/Sole Charge) $13.89 $9.44 $4.45 47.2 %
16 (Base) $9.23 $7.80 $1.43 18.3 %
16 (Gold Expert) $9.58 $8.06 $1.47 18.3 %
16 (LAS) $11.39 $8.31 $3.08 37.1 %
16 Supervisor/Sole Charge $13.89 $10.35 $3.54 34.2 %
17 (Base) $9.23 $8.26 $0.97 11.8 %
17 (Gold Expert) $9.58 $8.52 $1.06 12.5 %
17 (LAS) $11.39 $8.77 $2.62 29.9 %
17 Supervisor/Sole Charge $13.89 $10.81 $3.08 28.5 %
18 + (Base) $10.25 $9.50 $0.75 7.9 %
18 + (Gold Expert) $10.90 $10.10 $0.80 7.9 %
18 + (LAS) $11.39 $10.56 $0.83 7.9 %
18 + (Supervisor/ Sole Charge) $13.89 $12.60 $1.29 10.3 %

Starbucks
Start $10.75 $10.00 $0.75 7.5 %
After 90 days $11.25 $10.50 $0.75 7.2 %
Level 1 $11.50 $10.75 $0.75 7.0 %
Level 2 $11.75 $11.00 $0.75 6.8 %
Shift Supervisor $14.25 $13.00 $1.25 9.6 %
Shift Supervisor with RMT $15.25 $14.00 $1.25 8.9 %

Other changes include:
- Secure hours of work
- Commitment to eradicate youth rates
- Unite notice boards on work sites
- Improved uniform allowances

ENDS