RBD - Restaurant Brands

[blackcap]

I hope they agree to what the union is asking for 10 cents a year over the minimum wage for 3 years so they'll be 30 cents above in 2019 is hardly unreasonable imo

They paid their CEO a million dollar bonus.

If I have to exit this stock a tiny bit under water I'll do it. I have real issues with holding them ethically if they're going to let this come to a strike. Can't they put potato and gravy and coleslaw up 20 cents or something? There must be a way to manage this or a point of compromise that's a better outcome than strikes and a demotivated hostile work-force with zero morale.

There is however a reason for minimum wage and I would venture that if there was no law such as minimum wage that many of these positions could be filled for $12 per hour and under. So I have little sympathy for those on strike. Just unions being bully's. Hold firm there RBD. On the flip side, 10 cents is not much and could garner some good rather than bad publicity. Although to me that would be the start of a slippery slope....

[lawson]

There is however a reason for minimum wage and I would venture that if there was no law such as minimum wage that many of these positions could be filled for $12 per hour and under. So I have little sympathy for those on strike. Just unions being bully's. Hold firm there RBD. On the flip side, 10 cents is not much and could garner some good rather than bad publicity. Although to me that would be the start of a slippery slope....

Agreed exploitation would be worse without a minimum wage but that doesn't mean the minimum is the maximum that should be paid. I have plenty of sympathy for the working poor - there but for the grace of God.

However the minimum wage went up 50 cents on April 1 so really I agree with you the union is pushing it as staff have just effectively had a govt prescribed pay rise. However, my personal preference is not to invest in companies with industrial relations issues and where the business model, in my view, is based on borderline exploitation of staff who earn a non-living wage so I just exited and swapped into SUM where I am happier with the improved pay conditions for care workers. Fortunately the share price is not down on this news so I didn't have to take a hit.

To each their own. Some won't for example invest in Sky city and that doesn't bother me at all, we just have to decide whether we think we are making a return in a way that sits right with us. I may be missing a big rebound in RBD who knows.

[percy]

Yes each to their own.

[Lewylewylewy]

Strike is turning out to be a load of free advertising. News are telling everyone to get takeout tonight.

[blackcap]

Agreed exploitation would be worse without a minimum wage but that doesn't mean the minimum is the maximum that should be paid. I have plenty of sympathy for the working poor - there but for the grace of God.

Come on, minimum wage in NZ is extremely high by world standards so I have little sympathy. I used to work this type of job when I was a student and did not quibble or moan about minimum wage at all. Was thankful for the opportunity to earn $$ in hours outside my lecture hours and supported myself this way. The unions need to be careful... the more they push for wage increases, the more automation will take away these jobs.
Using the word "exploitation" in a minimum wage example I find offensive. There is no compunction to take the job and if you want more then there is incentive and opportunity enough in this country.

[RGR367]

Strike is turning out to be a load of free advertising. News are telling everyone to get takeout tonight.

Yup. Porirua KFC store was packed with takeaway takers and dine in folks. We're one them

disc: no longer a holder

[LAC]

The unions need to be careful... the more they push for wage increases, the more automation will take away these jobs.
.

This is the industry I work in - automation in ICT. I see the fast food industry changing over the next few years, just by the fact the number of automation solutions that businesses have put in place in the IT industry that its going to be piss easy adding the value to mechanical machines and robotics. Just seen automated data centre rack installations being automated by someone thousands of kms away. The fast food industry is going to change and these strikes are going to speed that up if businesses add to their risks of yearly pay strikes.

[artemis]

.... There must be a way to manage this or a point of compromise that's a better outcome than strikes and a demotivated hostile work-force with zero morale.

Why would a company retain a 'demotivated hostile work-force with zero morale' unless absolutely nobody else is available? And even then, employees who fit that profile are a poisoned well, and negatively impact those around them. Thus a net drain and not worth keeping on.

[d.viviani]

wow .....not very sympathetic to the workers here. I am a holder of KFC and wonder why it has come to this.This country holds a flag for the anti worker movement as shown over the years and would rather import low wage workers to keep wages down rather than raise wages. I guess the battle rages on ...... still love that KFC tho ....mmmmm chips and gravy.

[Snoopy]

wow .....not very sympathetic to the workers here. I am a holder of KFC and wonder why it has come to this.This country holds a flag for the anti worker movement as shown over the years and would rather import low wage workers to keep wages down rather than raise wages. I guess the battle rages on.......

The main problem here is that memories are too short on both sides of the protest fence.

Wasn't it only a year ago that Restaurant Brands were the Union's poster boys for getting rid of 'zero hour contracts', and it was McDonalds who bore the brunt of protests?

Then on the management side, I remember then CEO Vicky Salmon crowing about the much higher EBITDA profits which got the unions all excited about pushing for higher wages for workers. Then Salmon had to sheepishly admit that, taking into account the higher head office costs, NPAT had barely moved year on year.

It looks like a repeat PR effort from management again. Yes higher profits are predicted and being crowed about. But the number of shares have gone up with the purchase of overseas assets using new shares, plus a whole lot more shares issued from the 2016 cash issue. So on an 'earnings per share' basis, there is no projected big profit increase with which to pay workers.

Of particular arrogance was the awarding of a $1.5m one off special bonus to CEO Russel Creedy. This method of payment is clearly not in alignment with shareholder interests and an obvious red flag for further union activism. How could the board be so stupid as to think this payment would slip under the radar as reasonable? The only good thing is that most of the board members who inked off the decision are now gone.

SNOOPY