McDonald’s ups U.S. workers’ pay in company-owned stores
Fast-food giant says wages will increase to $15 an hour by 2024
McDonald’s is raising pay at 650 company-owned stores in the U.S. as part of its push to hire thousands of new workers in a tight labour market.
The fast-food giant is also encouraging its franchisees — which make up 95 per cent of its restaurant base — to boost pay.
McDonald’s follows other chains including Chipotle, which said Monday that it will raise workers’ pay to an average of $15 (U.S.) per hour by the end of June. Darden Restaurants, the owner of Olive Garden and other chains, said it March that it will guarantee workers $12 per hour including tips by 2023.
Amazon, Costco and other big companies have all announced pay raises in recent weeks.
Wages and benefits for U.S. workers have been rising as vaccinations increase and employers try to meet growing demand at restaurants and other businesses. U.S. workers’ total compensation rose 0.9 per cent.
McDonald’s, based in Chicago, said Thursday that its hourly wages will increase an average of 10 per cent over the next few months to $13 per hour, rising to $15 per hour by 2024. Entrylevel workers will make at least $11 per hour; shift managers will make at least $15 per hour.
Fight for $15 and a Union, a labour group which is trying to unionize fast food workers, said the increases aren’t enough and it will continue to demand a starting wage of $15 per hour for all McDonald’s workers.
“Clearly, McDonald’s understands that in order to hire and retain talented workers, something needs to change,” union organizer and McDonald’s employee and union organizer Doneshia Babbitt said. “Now, they’re raising pay for some of us and using fancy math tricks to gloss over the fact that they’re selling most of us short.”
Fight for $15 is planning strikes in 15 cities Wednesday ahead of McDonald’s annual shareholders meeting. However, the vast majority of McDonald’s nearly 14,000 U.S. stores are owned by franchisees who set pay in their own restaurants.