McDonald's Promises Employees Raises, Paid Vacation, and Financial Aid for Education
As retailers and cities respond to political pressure to increase the minimum wage, McDonald's has taken the lead among fast food chains by announcing a 10 percent raise for some of its employees.
In a press release, McDonald's said that 90,000 employees, or 10 percent of McDonald's restaurants in the United States, will benefit from the new policies. The raise only affects employees at locations owned by McDonald's itself. Most McDonald's locations are not owned by McDonald's, but rather local franchise owners.
The policy will begin July 1, 2015 and at that time, the wage for all new employees will be one dollar higher than the minimum wage of in the given geographic area a McDonald's is located. Because of this, the company believes that by some point in 2016, the average wage of a McDonald's worker at company owned locations will exceed $10 an hour.
In addition to the wage increases, McDonald's said that some employees will now be eligible for paid vacation. The policy applies to people who have worked for the company for more than a year, but even part-time employees are eligible. The company uses the example of someone who works 20 hours a week and says that by the end of the year, that person would have 20 hours of paid time off.
The company also announced the expansion of a program that helps employees finish their high school or college education called Archways to Opportunities.
"Through the program, the company provides financial assistance to those who wish to further their own education and career prospects. "We've been working on a comprehensive benefits package for our employees -- the people who bring our brand to life for customers every day in our U.S. restaurants," said McDonald's President and CEO Steve Easterbrook. "We've listened to our employees and learned that -- in addition to increased wages -- paid personal leave and financial assistance for completing their education would make a real difference in their careers and lives."
