Fast food chain McDonald’s (NYSE:MCD) is shifting away from the controversial zero-hour contracts and offering employees the options of fixed term contracts for a guaranteed number of hours each week.
Currently trialling the move in 23 of its outlets, this is a significant development in the franchise that is currently the biggest user of zero-hour contracts in the UK.
McDonald’s will offer fixed term contracts to those who have been struggling to get loans, mortgages and childcare due to no guaranteed hours each week.
“The vast majority of our employees are happy with their flexible contracts, but some have told us that more fixed hours would help them get better access to some financial products.” said Paul Pomroy, chief executive of McDonald’s UK.
Pomroy denied that he was responding to political pressure with the move.
“We are reflecting people’s lives. In a growing business, we need people to come and work for us, it’s a mutually beneficial approach,”
“The hard work of our restaurant teams has enabled us to deliver 44 consecutive quarters of growth in the UK,” Pomroy said. “It’s right that we continue to invest in our people so they can deliver the experience that our customers want and expect.”
This is seen as an important move. The TUC have often called for the government to ban zero-hour contracts as staff earn up to a third less an hour than the average worker.
“MPs aren’t the only ones feeling insecure in their jobs right now. If nothing changes, hundreds of thousands more Brits could be stuck in insecure work, being treated like disposable labour. That’s the same as 13 extra Sports Directs or the entire working population of Sheffield.” said Frances O’Grady, the TUC general secretary.
“Paying rent and bills can be a nightmare when you don’t know how much you’ve got coming in each month. And planning childcare is impossible when you’re constantly at the beck and call of employers.
“The next government will need to tackle this problem head on. Every party manifesto must have real commitments to crack down on zero-hours contracts and bogus self-employment. And agency workers should always get the going rate for the job.”
In another big move for the fast food chain, McDonald’s have announced that they will start trialling home delivery in June.
“The market’s growing – I’ve been looking at that market for 18 months now – customers are starting to ask us when McDonald’s are doing delivery,” Pomroy told Sky News.
Shares in McDonald’s have risen 15 percent this year, giving the firm a market value of $115 billion.