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McDonald's Raising Average Worker Wage to About $10 an Hour

Wednesday, 01 Apr 2015 04:05 PM

McDonald's Corp. plans to raise the average pay of roughly 90,000 U.S. restaurant workers to around $10 and to tack on benefits such as paid vacations, the fast-food giant said on Wednesday.

The move from McDonald's follows entry-level wage hikes by Wal-Mart Stores Inc. and other retailers and comes amid frequent fast-food and retail worker protests calling for higher pay and better working conditions.

On July 1, starting wages at McDonald's roughly 1,500 company-operated U.S. restaurants will be $1 above the locally mandated minimum wage. By the end of 2016, McDonald's projects that the average hourly wage rate for McDonald's employees at those restaurants will be above $10, the company said.

The increase will take the average hourly rate those workers to $9.90 on July 1, up from $9.01 currently, according to the Wall Street Journal.

The immediate impact of the move will be limited. 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.

Shares in McDonald's, which has been fighting to reverse slumping sales and traffic declines, were essentially flat at $96.29 in extended trading.

McDonald's move could put pressure on franchisees to increase worker wages. That could force those business owners to raise food prices to cover additional labor costs, a move that could benefit McDonald's because its franchisees pay the company royalties based on sales.

"They'll try to paint this as altruistic, but they're increasing their corporate income by doing this. It's not as nice as it sounds," said Richard Adams, a former McDonald's franchisee who now consults for current ones.

© 2017 Thomson/Reuters. All rights reserved.

   
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McDonald's Corp.plans to raise the average pay of roughly 90,000 U.S. restaurant workers to around $10 and to tack on benefits such as paid vacations, the fast-food giant said on Wednesday.
McDonalds, pay, wage, restaurant
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2015-05-01
Wednesday, 01 Apr 2015 04:05 PM
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