The Multinational Monitor

NOVEMBER 1982 - VOLUME 3 - NUMBER 11


G L O B A L   N E W S W A T C H

McDonalds Burns Canada Labor

Saskatoon, Saskatchewan - Canadian labor and consumer groups have been telling the McDonald's Corporation that they deserve a break today.

The American fast food giant decided in September to switch from its Canadian to an American supplier of buns, resulting in the dismissal of 78 workers from McGavin Foods, Ltd, which had the contract with McDonalds.

While the numbers of lost jobs may seem small, the move provoked swift and angry reactions. The New Democratic Party and various labor organizations launched a boycott of the chain, and editorials in western Canadian papers denounced McDonald's decision.

The anti-McDonald's campaign in western Canada, however, does not seem to ruffle McDonald's management. The company has opened successful outlets across the country, now totaling 350, with an expansion rate of about 40% a year. McDonald's Canadian president, George A Cohon recognizes no limits to growth: "Saturation is for sponges," he says.

- This report was written by Walter Davis, a researcher with the Saskatchewan Cross-Cultural Centre.


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