McDonald's Raises Pay To $1 Over Minimum Because Unemployment Is Falling

April 2, 2015 9:16 AM

57 0

An interesting announcement from McDonald's McDonald's this morning: the burger chain is going to increase the wages of its workers to $1 above the local minimum wage. There’s also going to be an increase in the benefits package, in that workers will earn paid vacation time. It’s true that this is only at the company’s directly owned locations: this isn’t going to make any difference to those working for franchisees (some 90% of the network). It’s also true that there’s no real surprise in this happening. We can just look at the falling unemployment rate and see that wages are going to start moving. Indeed, this is the very thing the Federal Reserve is looking at as it puzzles over when and how to raise interest rates. Falling unemployment is going to lead to increases in wages and this might feed through into inflation. That’s just the general way these things work out.

According to McDonald`s, this pay rise will lift the average hourly pay rate for its employees to $1 above the required minimum wage on July 1. McDonald also said that they are planning to increase the hourly pay rise more than $10 by the end of 2016. In a press release the company said they are als...

Read more

To category page

Loading...