McDonald’s to Raise Minimum Wage for Employees at Company-Owned Restaurants
Published at
McDonalds(NEW YORK) — Some McDonald’s employees will see their wages increase later this year, after the company announced new benefits for workers at its company-owned restaurants.
“We’ve been working on a comprehensive benefits package for our employees — the people who bring our brand to life for customers every day in our U.S. restaurants,” President and CEO Steve Easterbrook said in a statement. “We’ve listened to our employees and learned that — in addition to increased wages — paid personal leave and financial assistance for completing their education would make a real difference in their careers and lives.”
Beginning on July 1, starting wages at company-owned locations will be $1 more than the locally-mandated minimum wage. Wages for all employees, including managers, will be adjusted based on tenure and performance, the company release says.
“By the end of 2016, McDonald’s projects that the average hourly wage rate for McDonald’s employees at company-owned restaurants will be in excess of $10,” the release notes.
Workers at company-owned restaurants with at least one year of service will also begin to accrue personal paid time off. McDonald’s says that an employee who works an average of 20 hours per week would be eligible to accrue about 20 hours of paid time off per year.
About 10 percent of McDonald’s restaurants nationwide are company-owned. The rest, run by more than 3,100 franchisees, “operate their individual businesses and make their own decisions on pay and benefits for their employees,” the statement says.
“We know that a motivated workforce leads to better customer service,” Easterbrook said. “So we believe this initial step not only benefits our employees, it will improve the McDonald’s restaurant experience.”
Kwanza Brooks, a McDonald’s worker from Charlotte, North Carolina, said in a statement that the company’s actions are “too little to make a real difference, and covers only a fraction of workers.”
“It’s a weak move for a company that made $5.6 billion in profits last year,” Brooks says. “We’re going to keep fighting until we win $15 [per hour] and union rights for all fast-food workers and our families.”
Follow @ABCNewsRadio
Copyright © 2015, ABC Radio. All rights reserved.