McDonald's plans to raise wages of the 90000 employees in U.S. Other benefits would be provided to the employees that would include paid vacations. This policy would only be covering those employees who are working in the restaurants directly owned by McDonald's and not their franchise restaurants.
McDonald's plans to raise wages by more than 10% for workers at U.S. restaurants, one of the foremost reasons for this is rising wage pressure and protest for increase in wage rate within the American labour market, according to The Wall Street Journal.
The new wage rate policy will be applicable from July 1. The 1,500 company-operated U.S. restaurants will be receiving $1 above the locally mandated minimum wage. McDonald's s stated that by the end of 2016, they are expecting the hourly average wage rate to be above $10 for the employees working in the restaurants owned by them, according to Al Jazeera America.
McDonald's will also provide the workers who have been served for than a year with five days of paid time off each year. The company will pay for workers to earn a high school diploma and offer some college tuition assistance. The Franchise workers will be getting educational perks, but they will not be getting paid time offs, according to The Huffington Post.
Labour groups have become vocal about their criticism of wages and working conditions at McDonald's and the other restaurants owned by them. But the food giant claimed that the protests were not the reason for increasing the wage rates.
Critics of McDonald's still say that the wage hike is not enough since the wage rates are not in pace with the increasing inflation.
The increases in wages will still have some payback; it will reduce the level of employee attrition since, employees who were skilled left in search for better jobs with better pay scales.