McDonald's to Raise Pay 10% for Workers

But move doesn't affect most stores, those owned by franchisees
By John Johnson,  Newser Staff
Posted Apr 1, 2015 3:41 PM CDT
McDonald's to Raise Pay 10% for Workers
In this Sept. 4, 2014 file photo, a McDonald's employee chants slogans before being detained by police during a protest in Philadelphia.   (AP Photo/Matt Rourke, File)

It's good news for McDonald's workers in the US, or at least for the ones who happen to work in restaurants owned by the chain instead of by a franchisee: The Wall Street Journal reports that starting on July 1, the company will pay its workers at least $1 above the local minimum wage. The move will bring the average hourly pay to $9.90, an increase of about 10%, and the workers also will be able to get vacation time. The big caveat: The move affects 90,000 workers at the 1,500 stores owned by the company; the other 90% are owned by franchisees, and the franchisees are not obligated to follow suit.

"We understand that life balance is important, and believe that this will make a difference for our people," wrote CEO Steve Easterbrook, reports the Chicago Tribune. The decision follows intense pressure from labor groups to give fast-food workers more competitive wages. McDonald's also plans to offer all employees, including those at franchisee-owned facilities, education benefits that include help with college tuition. (More McDonald's stories.)

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