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Thursday, January 1, 1998 Published at 17:19 GMT



Business

Low pay warning as McDonald's beefs up investment
image: [ McDonald's aims to open 300 new UK restaurants by 2000 ]
McDonald's aims to open 300 new UK restaurants by 2000

McDonald's has been criticised for paying its workers too little after the burger chain announced an £85m expansion plan for the UK.

The fast-food giant says 100 restaurants will be opened in 1998 and a further 200 outlets by 2000 after a buoyant year of sales.

The news means 3,750 full-time jobs and a further 11,250 part-time jobs will be created in the next few years.


[ image: Profits]
Profits
The announcement by McDonald's came soon after rival Burger King unveiled plans to open 55 restaurants in 1998, creating 2,000 jobs.

However, the Low Pay Unit says the rate at which many of the burger workers will be paid - as little as £3.50 an hour - represents just a third of the average British wage.

Spokeswoman Bharti Patel said: "Employees should not be paid less than £4.50 an hour and starting rates should be at a reasonable level."

The GMB union said it welcomed the plans by McDonald's, whose annual turnover in the UK is £943m, but noted that many of the new jobs will be part-time.


[ image: McDonald's boss Andrew Taylor:
McDonald's boss Andrew Taylor: "We will provide new employment for young people"
A spokesman said: "We are always wary of part-time work which is aimed at young people for low wages. We would like to see control of health and safety and proper rates of pay."

However, McDonald's, which employees 55,000 people at 830 restaurants around Britain, brushed off the attacks, pointing out that they offer career opportunities.

Andrew Taylor, chief executive of McDonald's UK, said: "Half of our managers start as hourly employees. Although they start at quite humble beginnings, many end up with good careers."


McDonald's boss Andrew Taylor says most of the jobs will be for yougn people (1'37")
Health campaigners say more fast-food outlets could mean fewer people eating fresh food.

The message follows advice from the Government, backed up by research by the World Cancer Research Fund, that people should cut back on red meat.


[ image: Minimum rate of £3.50 an hour is not enough, says the Low Pay Unit]
Minimum rate of £3.50 an hour is not enough, says the Low Pay Unit
Tina Fox from the Vegetarian Society said: "Fast food products are suitable as a treat, but too many people regularly eat burgers.

"BSE and E.coli scares, together with recent cancer reports, have exposed the risks involved with eating meat."


 





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