[US] McDonald’s wage increase puts average hourly wage above $13 for some

McDonald's Corp. is going to increase its hourly wages to help with recruitment and retaining workers in a labour market which is becoming increasingly tight for US restaurants, The Day reports.

The raises average about 10 per cent, bring hourly entry-level salaries to a range of $11 to $17. Managers’ pay starts at $15 to $20, depending on location. Once the raises are completed, McDonald's said the average hourly pay at company-owned restaurants will be over $13.

More than 36,500 employees will benefit from the raises this round, which has already started and will be fully rolled out in the coming months, the company said. Average hourly wages across all company-owned locations are expected to reach $15 by 2024.

The pay hikes are another indication of inflationary pressures building in the US economy, as bottlenecks in the supply of goods and labour encounter climbing demand in the economic reopening. Consumer prices had the biggest jump in over a decade in April and companies report costs soaring for everything from construction materials to food.

There is concern among some economists that wage and price increases could feed off each other to create an inflationary spiral, though most expect living costs to settle down after a temporary spike this year.

The restaurant industry is among several forced to reconsider how much they pay workers who have been understandably reluctant to resume potentially high-risk low-wage jobs during a health crisis. Earlier this week, Chipotle Mexican Grill announced it was boosting its average wage to $15 an hour.

Even before the COVID-19 pandemic, labour was reportedly a major concern for the food industry. Now companies are trying to boost staff numbers anticipating a busy summer season as Americans start to venture out. McDonald's hopes to hire 10,000 new employees at its company-owned stores over the next three months alone.

Under current plans, only employees at the chain's 650 company-owned stores will get the pay increases. At franchised locations management makes its own individual decisions on wages. But franchisees are reassessing wages too, Mark Salebra - chairman of the US National Franchisee Leadership Alliance - said.

In a message seen by Bloomberg, Joe Erlinger - president of McDonald's USA - said, "Together with our franchisees, we face a challenging hiring environment, and staying ahead means we must constantly renew our commitment to offer one of the leading employment packages in the industry." 

He continued, "Simply put: putting our people first and doing the right thing for them will drive continued growth for our business."

However, as things currently stand, employees in a majority of the roughly 14,000 McDonald’s restaurants that are independently - not corporate - owned will not benefit from the wage rises. The raises will impact less than 5 per cent of locations.

US Representative Alexandria Ocasio-Cortez and Senator Bernie Sanders joined striking McDonald's employees at a virtual event yesterday to show their support.

In her address to the workers, AOC said, “If you want to look like you’re raising wages to $15 an hour, then you should actually raise wages to $15 an hour, for every McDonald’s worker in this country, minimum.”

She added, “We’re not buying it. We’re not falling for it.”

Employees at McDonald's stores in 15 cities including Los Angeles, Chicago, Kansas City, and Detroit organised Walkout Wednesday together with national advocacy group Fight for $15. Sen. Sanders and Rep. Ocasio-Cortez appeared on the #FightFor15 livestream event.

Source: The Day

McDonald's Corp. is going to increase its hourly wages to help with recruitment and retaining workers in a labour market which is becoming increasingly tight for US restaurants, The Day reports.

The raises average about 10 per cent, bring hourly entry-level salaries to a range of $11 to $17. Managers’ pay starts at $15 to $20, depending on location. Once the raises are completed, McDonald's said the average hourly pay at company-owned restaurants will be over $13.

More than 36,500 employees will benefit from the raises this round, which has already started and will be fully rolled out in the coming months, the company said. Average hourly wages across all company-owned locations are expected to reach $15 by 2024.

The pay hikes are another indication of inflationary pressures building in the US economy, as bottlenecks in the supply of goods and labour encounter climbing demand in the economic reopening. Consumer prices had the biggest jump in over a decade in April and companies report costs soaring for everything from construction materials to food.

There is concern among some economists that wage and price increases could feed off each other to create an inflationary spiral, though most expect living costs to settle down after a temporary spike this year.

The restaurant industry is among several forced to reconsider how much they pay workers who have been understandably reluctant to resume potentially high-risk low-wage jobs during a health crisis. Earlier this week, Chipotle Mexican Grill announced it was boosting its average wage to $15 an hour.

Even before the COVID-19 pandemic, labour was reportedly a major concern for the food industry. Now companies are trying to boost staff numbers anticipating a busy summer season as Americans start to venture out. McDonald's hopes to hire 10,000 new employees at its company-owned stores over the next three months alone.

Under current plans, only employees at the chain's 650 company-owned stores will get the pay increases. At franchised locations management makes its own individual decisions on wages. But franchisees are reassessing wages too, Mark Salebra - chairman of the US National Franchisee Leadership Alliance - said.

In a message seen by Bloomberg, Joe Erlinger - president of McDonald's USA - said, "Together with our franchisees, we face a challenging hiring environment, and staying ahead means we must constantly renew our commitment to offer one of the leading employment packages in the industry." 

He continued, "Simply put: putting our people first and doing the right thing for them will drive continued growth for our business."

However, as things currently stand, employees in a majority of the roughly 14,000 McDonald’s restaurants that are independently - not corporate - owned will not benefit from the wage rises. The raises will impact less than 5 per cent of locations.

US Representative Alexandria Ocasio-Cortez and Senator Bernie Sanders joined striking McDonald's employees at a virtual event yesterday to show their support.

In her address to the workers, AOC said, “If you want to look like you’re raising wages to $15 an hour, then you should actually raise wages to $15 an hour, for every McDonald’s worker in this country, minimum.”

She added, “We’re not buying it. We’re not falling for it.”

Employees at McDonald's stores in 15 cities including Los Angeles, Chicago, Kansas City, and Detroit organised Walkout Wednesday together with national advocacy group Fight for $15. Sen. Sanders and Rep. Ocasio-Cortez appeared on the #FightFor15 livestream event.

Source: The Day