McDonald's Image Getting Tainted – Is The Management Listening?

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Mar 19, 2015

Burnt while opening the oven, boss say apply some mustard. For fast food giant McDonald’s Corp.’s (MCD, Financial), there seems to be no end to controversies. First, it faced a huge outcry globally, and especially from its home base, about the unhealthy food being served which was leading to obesity among kids and adults. People started opting for healthier options and such was the impact that the stock started moving into the negative territory. It did cost Don Thompson his job as CEO and former chief brand officer, with Steve Easterbrook taking over. In a move to improve its image, the company has announced that it would only serve chicken not raised with antibiotics, and milk from cows not treated with artificial growth hormones.

The spark to the fire

If this was a step in the right direction, a gust of wind seemed to have upset the careful planning to re-invent. A survey was released on Monday by the National Council for Occupation Safety and Health which led to a fresh storm. It found that 36% of the workers reported first aid kits to be empty or out of their reach. Moreover, the survey found that around one-third of those working at fast-food joints across the U.S. were told to treat burns received at work with condiments.

The reasons stated for this dismal condition is not only poor cooking equipment and safety supplies but also understaffing and the pressure on workers to work under tight schedules which is leading to accidents in the kitchen, and this directly portrays the careless attitude of the management of the fast-food retailers.

What was the rally for?

On Tuesday morning, McDonald’s employees went on a nationwide strike as a protest against the “Cover it up and get back to work” work culture of the company’s management, and 28 complaints were filed. While the rally was to highlight injuries at workplace and for seeking safer working conditions, the workers were also demanding $15 minimum wages and the need to establish a union.

Newspapers across the states carried articles documenting the horrors faced by many staffers at the McDonald’s outlets when either the first aid kit was empty or the injured were told to apply condiments like mustard when the queues at the counter were very long. To deal with customer pressure and shortage in staff, managers have told their injured employees to keep working without any medications at times. Grievances had been building over time, and Tuesday saw these workers take to the streets to voice their concerns.

The company’s response

The company, however, stressed its approach to a safe working environment and hinted that the rally and lawsuits were a ploy to set up a union. However, the rally happening immediately after the publication of the study seems more spontaneous than premeditated.

Moreover, around 20 OSHA complaints had been filed against the company. In their official statement to the press, the company said that it is reviewing these complaints. However, they also said that it’s “important to note that these complaints are part of a larger strategy orchestrated by activists targeting our brand and designed to generate media coverage."

After the unhealthy food row, unsafe work conditions are the most recent dent to the company’s image and branding. As the protests spread, and the press takes up the issue further, the company will try for damage control but labour issue and their safety measures is not something to be taken too lightly. The image will take a serious beating if this burning issue is not dealt with immediately.

Parting note

Now, that the menu has been improved, how about taking care of those serving the meals and making them happy? Let’s hope Easterbrook takes note of the warning bell and saves the company from any further embarrassment.