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Former McDonald’s CEO: ‘It’s Cheaper To Buy A Robot Than Hire At $15/Hour’

Posted at 7:21 AM, May 27, 2016
and last updated 2016-05-27 07:21:41-04

A former McDonald’s CEO is warning that raising the minimum wage will spark an unemployment boom as companies instead choose to use robots to do the work.

“I guarantee you if a $15 minimum wage goes across the country you’re going to see a job loss like you can’t believe,” said Edward Rensi in an appearance on Fox Business Network on May 24.  “It’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries.”

“It’s not just going to be in the fast food business. Franchising is the best business model in the United States. It’s dependent on people that have low job skills that have to grow. Well if you can’t get people a reasonable wage, you’re going to get machines to do the work. It’s just common sense. It’s going to happen whether you like it or not. And the more you push this it’s going to happen faster,” Rensi added.

Protestors were outside McDonald’s headquarters in Chicago much of the week, pushing for a higher minimum wage.

The company was forced to shut down the building due to the disruptions.

McDonald’s released a statement saying it raised wages for all employees at company-owned restaurants in July to $1 above the local minimum wage.