Staffing
McDonald's makes major labor play, raises wages 10%
May 13, 2021
In advance of a planned strike next week of McDonald's workers in 15 cities, the company said its U.S. corporate stores will raise hourly wages for more than 36,500 employees at McDonald's-owned restaurants by an average of 10%, according to an email from the chain Thursday. Approximately 650 of the chain's 39,000 stores are company-owned, though it's unclear if that is nationally or globally.
A McDonald's spokeswoman said the pay increases are already underway and will continue to roll out incoming months. That means at corporate stores, entry-level pay at the chain's company-owned unit will be raised to $11 to $17 an hour, and the starting range for shift managers will grow to at least $15 to $20 an hour, based on restaurant location.
In a written message sent to U.S. employees and owner/operators this morning, McDonald's USA President Joe Erlinger said, "The decision was informed by thoughtful wage and benefit analysis conducted to inform the Employee Value Proposition, a set of competitive rewards and benefits initiatives that restaurants can implement; and feedback from our hardworking employees who told us that taking care of their loved ones is their highest priority. …
"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. The existing programs at company-owned restaurants, and these moves, are intended to ensure our company-owned restaurants continue competing for the talent we need, while also recognizing the hard work of our crew and managers. … We encourage all owner/operators to make this same commitment to their restaurant teams in ways that make the most sense for their community, their people, and their long-term growth."
In a letter this morning to corporate store employees, the vice president of the corporate-owned group, McOpCo's Gregg Ereio, told workers the move will help the restaurants remain competitive in a hiring environment that has closed stores and led to pay raises at other chains, like Chipotle.
"At a time when the market for talent is getting more challenging, our continued growth will depend on our ability to recognize, recruit, and retain outstanding people. That's why we are committed to offering a comprehensive, industry-leading pay and benefits package. … This is how we will win the future: with well-trained and engaged crew who continue to feed and foster community while providing delicious, feel good moments — one customer, crew member, and community at a time."
Recently the fast casual chainChipotle raised its wages to $15 an hour and many other companies are strategizing to attract employees who've left the business over the last year.
