From the NRA Show: McDonald's Skinner on Looming Labor Crisis
The burger giant offers health insurance and 401(k) plans to attract workers.
By David Farkas, Senior Editor -- Chain Leader, 5/21/2008 10:08:00 AM
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| During the NRA Show in Chicago, keynote speaker Jim Skinner, CEO of McDonald's, talked about the importance of offering benefits to recruit and retain hourlies. |
"Just most of them," he quipped as he addressed a sparse audience on Sunday during the National Restaurant Association Hotel-Motel Show in Chicago. Skinner and Sen. John McCain, who spoke a day later, were keynote speakers at this year's gathering.
Yet Skinner's later remarks--and McDonald's recent efforts--show he's just as eager to steal their employees. McDonald's needs them.
"The math is not on our side," Skinner said, referring to the number of future workers the burger giant will need. "We need to make working for us that much more attractive."
The Cost of Benefits
A 401(k) plan ("The same one I have," Skinner noted) is now available to every company employee. Health insurance is offered at some 9,000 company units in the United States, he added.
"Having said that, and we're proud of it, being available doesn't mean it's affordable. Not everyone is taking advantage of it because it's not affordable for the average employee," he said.
According to the company's Web site, the preferred-provider-organization plan features a prescription-drug program and an unlimited lifetime benefit maximum. Skinner did not mention what the program costs employees.
Tough Times
In recent years, McDonald's has aggressively battled against government-mandated health care, notably in California. Skinner mentioned his opposition to it in his remarks, listing such mandates among the industry's most difficult issues.
"I don't have to tell you times are tough," he declared. "We're facing a perfect storm in many ways. We face a tightening labor market, minimum wage, mandated health care and immigration regulations."
Skinner described the need for employees who can maintain safety and service levels as "increasingly urgent in our modern world."
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