KEY POINTS:
I am frequently critical of large corporations' behaviour towards their workers. However, today I congratulate McDonald's, which has agreed to pay its workers under 18 years of age the same as adult workers as from this week.
As I am the union advocate currently in negotiations for McDonald's
workers - and wish to keep the bargaining process positive - I'll let their public relations people get away with spinning this initiative as their own good idea.
The truth is their main competitor, Restaurant Brands, in their KFC and Pizza Hut stores, has agreed to do the same next month as well. In fact, Starbucks and Wendy's never paid youth rates. But McDonald's has grabbed the public relations initiative by announcing they will abolish youth rates and raise wages before their rivals. To be fair, McDonald's was the last major employer of young workers to pay youth wages and is the first to abolish them.
Three years ago, my union, Unite, launched our SuperSizeMyPay campaign, which mobilised thousands of workers in the fast-food sector and students to raise the minimum wage to $12 an hour and abolish paying under-18s 20 per cent less than their older workmates for the same job. This campaign was won. From next month, all employers will have to pay no less than $12 an hour and, in general terms, abolish youth rates.
The SuperSizeMyPay campaign had tens of thousands of people signing petitions and thousands of young workers taking strike action. In Auckland, 2000 secondary students attended public rallies demanding youth wages be abolished.
Two years ago, Unite negotiated the first union employment agreements for thousands of workers in the fast-food industry that included major improvements. All of these employers, including McDonald's, agreed in principle to abolish youth rates. During our contract negotiations over the past month major fast-food chains, including McDonald's, agreed to end youth rates this year.
But it wasn't just the employers and our campaign that did it. Before the last election, the Green, Maori and NZ First parties committed to raising the minimum wage and addressing youth wages. When the Labour-led government was formed, Helen Clark committed to address both issues as a matter of policy.
Special thanks to Green MP Sue Bradford - a founding member of Unite - who led the charge. Another major player was Ruth Dyson, who won over her more sceptical ministerial colleagues. Peter Brown from NZ First also played a very good role. The Maori Party went further arguing that $12 an hour wasn't enough and the proposed legislation didn't go far enough.
For workers who think there is no difference between Labour and National, I should point out that National opposed this legislation. Low-paid workers need to know that if there is a change of government there's little chance the minimum wage will move upwards next year.
John Key was reported to have said he wished wages would be lowered. I take him at his word that he said he couldn't remember saying it and that he probably meant it as a joke. However, it does suggest workers need to keep a careful eye on National's utterances this year.
Clark and her party have been under some pressure due to diabolical political polls. But those who have switched to National shouldn't forget it is her government that will raise the income of tens of thousands of low-paid workers by up to $30 per week, and, for some young workers, up to $2 an hour. This would not have happened if National was in power.
Thirty years ago, women were paid less than men doing the same work on the basis that their husbands were the primary wage earners. Norman Kirk's Labour Government abolished that injustice. One hundred years ago, Maori workers were paid less than their Pakeha workmates for the same job. Michael Savage's Labour Government abolished that injustice. So it is fitting a Clark Labour Government should abolish the wage differential for young workers doing the same job as someone else.
With the changes to the youth wages and the minimum wage, we will inevitably see a flow-on effect. Ultimately, the changes will affect hundreds of thousands of New Zealand workers.
When workers at the bottom end of the scale receive a pay increase in the next few weeks, it should be clear it was not from some employer largesse but because Labour, the Greens, NZ First and Maori parties voted for it.
McDonald's has used this decision as a marketing coup, and will deservedly get a huge public relations bonus out of getting the jump on their competitors. But let's be real: corporations don't give away money easily. Young workers, school students, the trade union movement, some political parties and the thousands of campaigners in the community should take a bow. Good on McDonald's for going first. But they would never have done it without help.
