McDonald’s and Wendy’s Child Labour Case

A group of important investment managers and treasurers are demanding action from McDonald’s and Wendy’s. These investors have a lot of money invested in the two big restaurant chains. In letters sent this week, they told McDonald’s and Wendy’s they must do more to stop child labor at their franchised restaurant locations. 

The letters came from investors who manage union pension funds. They represent investors who have over $2 billion invested in McDonald’s and over $400 million invested in Wendy’s. That’s a lot of money, so the companies have to listen.

What Did the Investors Say?

The investors’ letters said some strong things. They told McDonald’s and Wendy’s to have a zero-tolerance policy against child labor at all franchised restaurants. Zero-tolerance means not allowing it at all.

The letters also said McDonald’s and Wendy’s must get independent third-parties to check for human rights issues like child labor at their restaurants and suppliers. Third-parties are outside experts who can fairly investigate.

The investors pointed to a recent news report that found McDonald‘s and Wendy’s had among the highest numbers of child labor violations per restaurant since 2020. McDonald’s alone had over 2,300 violations since 2013!

Why This Matters

While the violations happened at franchised locations owned by others, not corporate stores, the investors say McDonald’s and Wendy’s are still responsible. They need to better oversee franchisees on labor issues.

The investors want the companies to improve training, auditing, and enforcement to catch and stop child labor across all franchise locations. They want surprise inspections by outside experts and safe ways for workers to report violations confidentially.

The investors also think executives’ pay should be tied to following labor laws at franchised stores, not just corporate ones.  

What Do McDonald’s and Wendy’s Say?

So far, McDonald’s claims child labor is “rare” and says most teen workers have appropriate jobs. But the investors and their money say the violations are still too many. 

Wendy’s hasn’t responded yet to the investors’ demands. But with billions invested, these investors have a big voice McDonald’s and Wendy’s may have to listen to if they want to keep their shareholders happy.