Roughly 90,000 people working in restaurants operated by McDonald's will be a little better off starting in July as the fast food chain has announced it will pay employees $1 above the mandated minimum wage. The bump will mean the average hourly worker will be earning $10 an hour working at McDonald's by the end of next year.
McDonald's, which has been the focus of labor protests because of the low wages paid workers in its 14,000 restaurants in the U.S., is also going to offer paid vacation time to full- and part-time workers who have been with the company at least a year. Workers who average 20 hours a week, for example, will be given 20 hours a year in paid time off. Employees who do not use the time they've earned will get paid for it instead.
"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 Steve Easterbrook, president and CEO of McDonald's, in a statement. "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."
While workers at company stores will benefit, it remains unclear what McDonald's franchisees will do. Roughly 90 percent of McDonald's in the U.S. are operated by franchisees and those companies make their own decisions about wages and benefits.
McDonald's also announced an expansion of its Archways to Opportunities program, which includes a free high school completion program and tuition assistance for college courses. Archways to Opportunities covers workers at company-owned and franchised locations.
"Businesses like ours have a vested interest in helping to create an educated and well-trained workforce," said Mike Andres, president of McDonald's U.S., in a statement.
Critics dismissed the chain's announcement as being insufficient.
Kwanza Brooks, who works at a McDonald's in North Carolina and is part of the Fight for $15 group advocating for higher wages, called the move a "PR stunt" and "a weak move for a company that made $5.6 billion in profits last year" on a conference call with reporters.