Japan Press Weekly

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2008 May 21 - 27 [LABOR]

McDonald’s to pay overtime to managers from August

On May 20, major fast-food chain McDonald’s Japan announced that it will introduce a new wage system from August 1 to pay its 2,000 restaurant managers for their overtime work.

Outlet managers, treated as “supervisors,” have so far been forced to work extra hours without pay, although they are not given any administrative authority as defined by the Labor Standards Law. They are “managers in name only”.

In January, the Tokyo District Court ordered McDonald’s Japan to pay about 7.5 million yen for overtime in back pay to a manager who had sued the employer.

While appealing the court decision, McDonald’s has decided to change its wage system to one of reflecting managers’ working practices.

A new wage system will be applicable to mangers of restaurants under the direct management of McDonald’s and regional managers, but they will not get overtime pay in back pay.

McDonald’s said that its total personnel cost is the same because overtime payment will be funded by abolishing allowances attached to the post.
- Akahata, May 21, 2008