LOS ANGELES — McDonald’s Corp plans to raise the average pay of about 90,000 U.S. workers to around $10 an hour; but the increase will not benefit workers at the vast majority of the restaurants, because they are operated by franchisees, who make their own wage decisions.
Workers groups said the move by McDonald’s, which is also adding benefits such as paid vacations, fell short of their goals. They planned a nationwide protest for Thursday. Wal-Mart Stores Inc. and other retailers have introduced entry-level wage hikes in response to frequent worker protests calling for higher pay and better conditions.
McDonald’s, which announced the increases on Wednesday, has been fighting weak traffic and slumping sales in the United States. The pay increase, for workers at roughly 1,500 company-owned U.S. restaurants, will take effect on July 1.
Starting wages at the restaurants will move to $1 above the locally mandated minimum wage. The increase will take the average hourly rate for those workers to $9.90 on July 1, up from $9.01 currently, McDonald’s said.
By the end of 2016, McDonald’s said, the average hourly wage rate for McDonald’s employees at those restaurants will exceed $10.
Almost 90 percent of McDonald’s more than 14,000 U.S. restaurants are operated by franchisees, who set pay and benefits for their own workers. But the expectation is they will face pressure to follow suit to stay competitive as employers.
McDonald’s also said that full- and part-time crew employees at company-operated restaurants, with at least one year of service, will begin to accrue personal paid time-off. Workers said the company does not currently offer paid time-off. Beyond that, some employees at both company- and franchise-run stores will be eligible for education assistance.
Leave a Reply