McDonald’s is raising salaries at 650 company-owned stores in the United States as part of its efforts to hire thousands of new workers in a tight labor market.
The fast food giant is also encouraging its franchisees – who make up 95% of its restaurant base – to increase their wages.
McDonald’s is following other chains, including Chipotle, which said Monday it would raise workers’ wages to an average of $ 15 an hour by the end of June. Darden Restaurants, owner of Olive Garden and other chains, said in March it would guarantee workers $ 12 an hour, including tips by 2023.
Amazon, Costco and other big companies have all announced pay increases in recent weeks.
The wages and benefits of American workers have increased rapidly as vaccinations increase and employers try to meet growing demand from restaurants and other businesses. Total U.S. workers’ compensation rose 0.9% in the first three months of this year, the biggest gain in more than 13 years, according to the Department of Labor.
Chicago-based McDonald’s said on Thursday its hourly wages will rise an average of 10% over the next few months to $ 13 an hour, rising to $ 15 an hour by 2024. Entry-level workers will earn at least 11 $ the hour; shift managers will earn at least $ 15 per hour.
Fight for $ 15 and a union, a group of workers trying to unionize fast food workers, said the increases were not enough and they would continue to demand a starting wage of $ 15 an hour for all McDonald’s workers.
âClearly, McDonald’s understands that in order to hire and retain talented workers, something has to change,â Doneshia Babbitt, union organizer and McDonald’s employee and union organizer, said in a statement. “Now they are raising the wages of some of us and using sophisticated math tricks to ignore the fact that they are selling most of us short.”
The $ 15 fight calls for strikes in 15 cities next Wednesday ahead of McDonald’s annual shareholders meeting.
However, the vast majority of the nearly 14,000 McDonald’s stores in the United States are owned by franchisees who set wages in their own restaurants.
McDonald’s said it does not have data on wages at franchise restaurants, but said it is asking them to do the same.
âWe encourage all of our owners / operators to make that same commitment to their restaurant teams in the way that makes most sense for their community, their employees and their long-term growth,â McDonald’s U.S. President Joe Erlinger wrote in a letter to employees.
In a prepared statement, the US National Franchisee Leadership Alliance __ which negotiates with the company on behalf of franchisees __ expressed support for wage increases and encouraged restaurants to remain competitive in their local markets.