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Here’s an interesting story about how McDonald’s Corp. is urging franchises to remain open on Christmas Day. Workers would be paid their regular rate, of course — minimum wage or a bit more. Working the holiday is voluntary, the company says.
Last year, the average McDonald’s that was open on Christmas average $5,500 in sales. The average profit margin for franchisees is around 10 percent. Thus, the franchise owners stand to net about $550 per store open on Christmas, on average.
So let’s do a little math on the lowball side, eh?
Let’s assume they’ll be open for 12 hours, and that it takes 4 staff to keep the place humming, and that they’re all earning minimum wage.
That’s 48 worker hours, or $348 in wages the franchise would spend to earn his or her $550. If they paid traditional OT wages, (time and a half) that would total $552, which means the franchise would earn only $376.
And if they paid traditional holiday OT wages (doubletime) that would leave the workers with $696 in pay, while the franchisee would wind up with only $202.
So the franchise owner more than doubles his or her money by screwing the workers on Christmas — but after all, they are VOLUNTEERS, so they’re not being screwed, right? Keep in mind these are lowball estimates. It’s possible that any profit whatsoever would be eliminated if they paid doubletime wages and if the crew was bigger, or earned a little more, or they were open longer hours.
It’s the direction we’re heading in that’s most concerning about this scenario, however. Read more »