EMPLOYMENT


POLICY STATEMENT
BACKGROUND
STATISTICS
EQUAL OPPORTUNITIES
Policy
Equal Opportunities Group
Women
Disability
Monitoring

TRAINING
Policy
Crew Members
Business Managment Programme
Junior Business Management Programme
Part-Time Management Scheme

SALARY AND BENEFITS
Crew rates and benefits
Salaried rates and benefits

EMPLOYEE COMMUNICATION
EDUCATION
Education Awards
Books Programme

HEALTH AND SAFETY


POLICY STATEMENT
To recruit people who have a positive attitude towards customers,
themselves and other employees and who are capable of
delivering the highest standards of quality, service and cleanliness
to our customers.

To employ local people wherever possible.

To ensure that employees and job applicants are selected, trained,
promoted and treated on the basis of their relevant skills, talents
and performance and without reference to race, colour, nationality,
ethnic origin, gender, marital status or disability.

To provide a clean, safe, healthy and enjoyable working
environment.

To provide training and development for all employees to enable
them to achieve the highest level of skills possible.

To provide career opportunities which allow employees to develop
to their full potential.

To provide challenging and rewarding work.

To pay for performance.

To communicate effectively with all employees via crew meetings,
one-to-one discussions, publications and regular opinion surveys.

To encourage the educational pursuits of employees through the
McDonald's Books, Education and Scholarship programmes which
provide financial support to qualifying employees who are
undertaking a recognised course of study.

BACKGROUND
Within the restaurant structure, there are three main levels of
recruitment at McDonald's; hourly paid employees, Junior Business
Managers and Management trainees.

Hourly paid employees are offered the benefit of flexible working
arrangements to suit an individual's specific requirements.

STATISTICS
Hourly paid company employees as of Dec 1994 (excluding
franchised restaurants):

51.70% are male
48.30% are female
90.23% work 35 hours per week or less
64.55% are aged 20 or under
32.02% are aged between 21 and 39 inclusive
8.93% are aged over 30

EQUAL OPPORTUNITIES
POLICY
McDonald's is an equal opportunity employer, ensuring employees
and job applicants are selected, trained, promoted and treated on
the basis of their relevant skills, talents and performance and
without reference to race, colour, nationality, ethnic origin, gender,
marital status or disability.

In support of this, McDonald's also has a policy on Sexual and
Racial Harassment.

McDonald's deplores all forms of sexual and racial harassment and
seeks to ensure that the working environment is comfortable and
secure for all employees.

The person responsible for these policies is the Assistant Vice
President of Human Resources, but it is the responsibility of all
employees, particularly managers and supervisors, to ensure the
day-to-day practical application of the policies.

The Human Resources Department monitors the effectiveness of
the policies at regular intervals and takes such corrective action as
may be necessary to ensure that they are being complied with.

Employees who feel that they have been unfairly treated in any way
regarding these policies are encouraged to use the remedies
outlined in the company's Crew and Employee Handbooks.

EQUAL OPPORTUNITIES GROUP
An Equal Opportunities Group was set up at the beginning of 1992
to evaluate and, where necessary, amend existing policies and
procedures and to develop and monitor the effective
implementation of positive action programmes. A report
summarising the Group's progress is submitted to the Board of
Directors on a regular basis.

WOMEN
[]Opportunity 2000 is a campaign set up by Business in the

Community and chaired by Lady Howe to increase the quality
and quantity of women's participation in the work force by the
year 2000.


[]As a company committed to equality of opportunity for all,
McDonald's became an active member of the Opportunity2000
campaign in 1992. The company's goal is to increase the
percentage of women holding middle and senior management
positions throughout the company by 50%.


[]31 % of McDonald's junior management positions are held by
women.


[]In 1991, McDonald's introduced a Company Maternity Pay Policy
giving employees with qualifying service an additional eight
weeks full pay while on maternity leave and a Paternity Leave
policy to give men with qualifying service, five days paid
paternity leave.


[]A Part-Time Management Programme was introduced in 1989 to
assist employees where the care of dependent children
necessitates a move to part-time employment.


[]Sexual and Racial Harassment Policy was introduced in 1993
to support the existing Equal Opportunities Policy.


DISABILITY
[]McDonald's is a member of the Employers'Forum on Disability
which exists to help companies to recognise, recruit and
develop the careers of people with disabilities. McDonald's is
committed to the Employers'Agenda on Disability and the Ten
Points for Action as drawn up by the Employers' Forum on
Disability.


[]In 1993 Paul Preston, McDonald's Chief Executive Officer, was
appointed Chairman of the Employers' Forum on Disability.


[]McDonald's restaurants, head office and regional offices are all
designed to allow ease of access for employees and visitors
who have special needs.


[]McDonald's is one of several companies piloting the 'Disability
Leave Guide for Employers'which was launched in 1993 by The
Right Honorable Gillian Shepherd MP, the Secretary of State for
Employment. This programme was the result of a study
undertaken by the RNIB in 1990. Disability Leave is a period of
time off work for a newly disabled person, or a person whose
condition has deteriorated, during which time their employment
is protected.


MONITORING
[]Equal Opportunities monitoring for all salaried employees was
introduced in 1991.


[]Equal Opportunities monitoring for all hourly paid employees will
be introduced in 1995.


[]The monitoring of equal opportunities statistics will allow the
Company to more effectively assess the implementation of Equal
Opportunities Policies.


TRAINING
POLICY
It is the goal of McDonald's to develop the highest level of skill
among all employees. Therefore, a common training programme
has been established to develop staff and to meet the training
needs of the company.

McDonald's Head of Training is responsible for implementing and
directing the training programme throughout the company.
Operations Supervisors and Restaurant Management participate in
the programme and are responsible for individual restaurant
results.

CREW MEMBERS
[]Each crew member receives on-the-job training in every area of
the restaurant.


[]Full-time staff are fully trained on all stations in the restaurant
within five months; part-time within ten months.


[]All 5-star crew members receive a Basic Certificate in Food
Hygiene, validated by the Institution of Environmental Health
Off icers.


BUSINESS MANAGEMENT PROGRAMME
[]A management programme for those over 21 aiming for a direct
route into restaurant management following an intensive and
structured training course.


[]All managers follow the Management Development Programme.

The first three months cover the three fundamental areas of the
business; food preparation, cooking, serving customers in clean
and hygienic surroundings. This is followed by a series of 12
training courses designed to back up what is learnt in the
restaurant and develop management, communication and
leadership.


[]When promoted to Restaurant Manager, training continues
through the Advanced Operations Course covering staff
development, motivation, stressmanagement,communication
and leadership.


JUNIOR BUSINESS MANAGEMENT PROGRAMME
[]The Junior Business Management Programme is open to A level
school leavers and is combined with day release for study in a
recognised business qualification such as a BTEC, HNC, HND
or Degree. The course lasts for 92 weeks, working from a
restaurant, learning management skills through practical
experience.


PART-TIME MANAGEMENT SCHEME
The Part-Time Management Scheme allows salaried employees to
move to part-time employment giving flexibility to their career.

Managers must work a minimum of two 8 hour shifts a week. All
hours are agreed with the Operations Manager and salary based
upon the degree of flexibility offered to the company.

SALARY AND BENEFITS
Salaries and benefits are reviewed on a regular basis with
increases being performance related.

CREW RATES AND BENEFITS
Average hourly rates of pay for employees in company-owned
restaurants as of January 1995:

London Midlands North
3.96 3.73 3.72

BENEFITS FOR HOURLY PAID EMPLOYEES:
Freemeal allowance
4 weeks holiday after qualifying period
Free life assurance (value dependent upon service)
PPP (for employees aged 19+ with 3+ years service)
Education programmes
Stock Purchase Scheme

SALARIED RATES AND BENEFITS
Effective from 1.1.95
Operations Manager30,000 - 40,000
Supervisor20,000 - 28,000
Restaurant Manager15,000 - 23,000
1st Asst. Manager13,000 - 18,000
2nd Asst. Manager11,500 - 14,000
Trainee Manager11,000
Junior Business Manager9,000

BENEFITS:
PPP (including spouse and dependent children)
BUPA Healthscreen (Operations Manager and office equivalent)
Pension Scheme (includes life assurance and long term disability)
Holidays (4 weeks per year, 5 weeks after 3 years service)
Company Car (for restaurant managers with 18 months service -
12 months in inner London)
Clothing Allowance (P-150 per year for restaurant staff)
Bonus Scheme
President's Award (bonus of 1/3 basic salary for selected
individuals)
Sabbatical (8 weeks paid leave for every 1 0 years service)
Company sick pay (4 weeks full pay in any tax year)
Profit Related Pay Scheme (up to 94,000 or 20% of salary)
Stock Option Scheme
StockPurchase Plan
Telephone Assistance (restaurant manager and above)
Company loan scheme (up to!E500repayableover1year)
Further Education Assistance
Relocation Assistance (when at the request of the company)
Maternity and Paternity Leave programmes

EMPLOYEE COMMUNICATION
McNEWS
Published quarterly for all crew members throughout the UK.

HIGH LEVELS
Published quarterly for all management staff throughout the UK.

FRANCHISEE NEWSLETTER
Published quarterly for all franchisees throughout the UK.

[]'Bright Ideas', McDonald's employee suggestion scheme is
currently being piloted in the Midlands so that ideas for
continuous improvement or cost savings can be taken on board.


[]Electronic mail will be in all restaurants by the end of 1995.

EDUCATION
EDUCATION AWARDS
Annually, every restaurant gives up to three Education Awards,
depending upon the number of employees. Those eligible have to
be hourly paid, have over one year's service and have achieved an
agreed level of performance.

The Education Awards are for 2250 to cover tuition fees or course
books.

BOOKS PROGRAMME
Employees studying externally and wanting financial assistance to
meet the cost of course books can receive up to 950 annually.
Grants are available to all hourly paid employees who have worked
for 6 months or more and achieved an agreed level of
performance.

HEALTH AND SAFETY
[]All McDonald's restaurants work to standards which meet the
highest'best practice' guidelines for Building and Health and
Safety regulations.


[]Should an incident occur in a restaurant, staff have the
necessary training to offer first aid. Company Accident
Investigating Guidelines require the manager to document the
incident and, where appropriate, carry out an investigation. The
Health and Safety Department closely monitors all such matters.


[]In 1994, the company achieved the highest award level ever
made under the ROSPA Quality Safety Audit (QSA) scheme. The
QSA encompasses all industries and measures management
commitment and action towards continued improvement of
health and safety.


[]McDonald's has a three year Health and Safety Management
Plan with progress monitored every three months.


[]The company has a National Corporate Safety Officer, three
Regional Health and Safety Advisors and retains the services of
two external consultants - a specialist from ROSPA (The Royal
Society for the Prevention of Accidents) and the other a Fellow of
the Institution of Environmental Health Officers.


[]A Senior Vice President heads up the multi-discipline Health and
Safety Steering Group which meets regularly to address all
aspects of health and safety in the restaurants.


[]Health and Safety training for staff is a priority. Restaurant
Managers undertake a one day specialist health and safety
course accredited by the Institution of Environmental Health
Officers, and middle management and training personnel take a
longer course. There is also specific safety training for dining
area staff.


[]Each restaurant has a Safety Coordinator. This is usually a
member of the management team who will oversee safety
management systems as well as chairing the employee Safety
Circle meetings. Restaurant Safety Circles meet regularly and
provide a forum for staff to discuss safety issues and implement
agreed action plans. Key issues are incorporated as part of the
ongoing national Health and Safety Management Plan.


[]As part of their development, all restaurant managers receive
training to become qualified first aiders. There will always be at
least one qualified first aider in any restaurant at any one time.


[]All employees receive safety training before they are allowed to
start work.


[]Relevant safety aspects are incorporated in training, both for
employees and managers.


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