Dow Jones reported the news exclusively, and it was cited at CNBC before being posted at The Wall Street Journal.
McDonald’s also will add paid vacation and perhaps other benefits. The motive, according to new CEO Steve Easterbrook, is to revive sales:
What we need to underpin [improved sales] is highly motivated teams in our restaurants. Motivated teams deliver better customer service and delivering better customer service in our restaurants is clearly going to be a vital part of our turnaround.
ALSO READ: 10 Retailers Closing the Most Stores
In mid-February, Wal-Mart Stores Inc. (NYSE: WMT) announced that approximately 500,000 U.S. employees will receive a pay hike in the first half of the 2016 fiscal year, raising their hourly wage to at least $1.75 above the current federal minimum wage of $7.25. By February 1, 2016, current associates will earn at least $10 an hour.
Workers who have been picketing McDonald’s and other low-wage employers are not satisfied with the hike. In a press release a McDonald’s worker said:
Because we joined together and stood up, McDonald’s was forced to raise pay. Still, this is too little to make a real difference, and covers only a fraction of workers. It’s a weak move for a company that made $5.6 billion in profits last year. We’re going to keep fighting until we win $15 and union rights for all fast-food workers and our families.
McDonald’s is currently battling a ruling by the National Labor Relations Board that would force the company to share the responsibility for franchise employees. Wednesday’s announced wage hike does not include the hundreds of thousands U.S. workers at McDonald’s franchises in the United States.
While McDonald’s does not set wages at franchised stores, critics argue that by setting every other fee that franchisees pay the company is in fact setting the workers’ wages.
ALSO READ: The Worst Product Flops of All Time
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.