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McDonald's Restaurants workers have won a collective employment agreement as a result of the "SupersizeMy Pay.com" campaign by the Unite Union.
The new minimum pay deal was yesterday hailed as a breakthrough by union national secretary Matt McCarten, who said other big fast-food chains would now fall into
line.
"The objective set a year ago was to get agreement with the biggest players."
He said that from today McDonald's workers under 18 would get an 11.6 per cent rise after six months. Those over 18 would get a 15.7 per cent increase after the same time.
McDonald's also promised union members a bonus and would implement a minimum shift, and had committed to abolishing youth rates.
In an agreement reached this year, Restaurant Brands (KFC, Pizza Hut and Starbucks) and Red Rooster promised to scrap youth rates.
"Burger King has realised it must follow suit and we are meeting Wendy's on Wednesday," Mr McCarten said.
Negotiations were "90 per cent there" with Burger King, he said. It was hoped to complete them this month.
Burger King, whose workers were mostly young, had agreed to shift the youth rate next year from $8.35 to $9.
This was a rise of 7.8 per cent. Adult workers would get a 7.3 per cent rise.
Mr McCarten said Burger King's proposal was below Restaurant Brands ($9.23) and the McDonald's deal of $9.50 after six months and was unacceptable to the union.
He said the union's focus now would be on the Government to make sure it moved a minimum rate and to get rid of youth rates. "Next year we will work through all employers who have young people to try to lift their wages up."
McDonald's human resources director Evelyn Gates said the company was committed to its 6000 employees in New Zealand and noted that the rates were minimums, with many of its restaurants continuing to pay above them.
She said the collective agreement included:
* As at today, minimum hourly starting rates of $8.40 for under 18s and $10.25 for those 18 years or over.
* Six-month minimum rates introduced from today, with under 18s getting $9.50 an hour and those aged 18 or over paid at least $10.75.
* From March 5, minimum starting rates rising to $8.60 and $10.75 respectively, with six-month rates remaining at $9.50 for those under 18 years and rising to $11.25 for those 18 or over.
* Employees unaffected by the above rise receiving a minimum 4 per cent rise from March 5.
* All pay rate changes remaining subject to a satisfactory performance rating.
Ms Gates said workers on individual employment agreements would get similar minimum rates and increases from today.
