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McDonald’s Is Not Increasing Workers’ Pay, Cannot Follow Walmart's Move

| Feb 24, 2015 02:28 AM EST

McDonald’s

McDonald's admits that it cannot follow the move made by Walmart last week to increase its workers' entry level salary amid protests against low wages happens.  Walmart made an announcement last week that it is going to raise entry-level pay rates.  The largest retailer is currently paying its workers at least $9 per hour by April and at $10 per hour by next February.

 It was a brave move by Walmart, and the question lies is if McDonald's is about to follow suit.  Protesters have already made their points of making these companies to increase wages. The activists were asking for a $15 increase, though Walmart complied with the raise, it is lower than the asking rate, according to Daily Finance.

Reports say that McDonald's cannot follow the bold move made by Walmart. Both companies are consumer facing giants but McDonald's cannot follow suit. There are some factors explaining why, one is operations.  Walmart operates it 4,516 US stores while McDonald's depends on franchises.

Walmart's 500,000 employees will be affected by the pay rate increase. The restaurants and fast-food  businesses are feeling the pressure to follow the retailer giant's action but is not going to happen.

"With Walmart raising the bar on pay scale, the employee recruitment pool will become tighter for good, qualified employees," explained Darren Tristano Executive Vice President of Technomic, CBS News reported.

The fast food industry has been under scrutiny on the earlier months after the series of protests targeting the $15 per hour of pay in every city.

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