On Wednesday, McDonald’s declared that it will increase the pay of 90,000 employees working in 1,500 of its restaurants across the country. Additionally, it will also offer benefits to staff.
The decision came after the hamburger chain received pressure for a tighter job market.
However, the move will only affect employees working at stores operated by McDonald’s, not the franchise-operated ones, which constitute almost 90% of 14,350 locations, according to USA Today.
The New York Times reported that payments will be upped by at least $1 on the local legal minimum wage to $9.90 an hour on average by July 1. In 2016, it is speculated to further increase to $10.
Moreover, paid time off will be granted to full and part-time workers who have been employed with McDonald’s for more than a year. The policy the company will adopt in this regard allows 20 hours of paid time a year for an employee who works 20 hours a week.
McDonald’s will provide financial assistance to students working at its restaurants and the ones operated by franchisees.
According to The Wall Street Journal, CEO Steve Easterbrook said, “We know that a motivated work force leads to better customer service, so we believe this initial step not only benefits our employees, it will improve McDonald’s restaurant experience.”
However, McDonald’s decision to offer pay rises is meeting a wave of criticism. Kwanza Brooks, a McDonald’s employee, who is also associated with Fight For $15, an organization protesting against low wages, said, “It’s a weak move for a company that made $5.6 billion in profits last year.”
Brooks said the pay hike was a “PR stunt.” She receives $7.25 an hour.
Members of Fight For $15 say that the rise is not adequate, and that only 5% of the employees across the country will be benefited.
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