Advertisement
Canada markets closed
  • S&P/TSX

    22,167.03
    +59.95 (+0.27%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CAD/USD

    0.7387
    +0.0001 (+0.01%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • Bitcoin CAD

    95,712.69
    +1,651.38 (+1.76%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • RUSSELL 2000

    2,124.55
    +10.20 (+0.48%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ futures

    18,465.00
    -38.75 (-0.21%)
     
  • VOLATILITY

    13.01
    +0.23 (+1.80%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,396.39
    +228.32 (+0.57%)
     
  • CAD/EUR

    0.6846
    +0.0003 (+0.04%)
     

Why 90% of McDonald's workers won't be getting a pay raise

McDonald's
McDonald's

(Reuters)

McDonald's announced Wednesday that it would be raising wages by more than 10%, but the increase applies to only a fraction of its workers.

The fast food chain said the changes would not impact franchisee-owned restaurants, which account for 90% of the more than 14,000 McDonald's locations in the US.

That means that just 10% of employees will see a pay bump.

McDonald's said franchisees will have the freedom to make their own decisions regarding pay and benefits for their employees.

"The more than 3,100 McDonald's franchisees operate their individual businesses and make their own decisions on pay and benefits for their employees," the company said in a statement.

ADVERTISEMENT

McDonald's franchisees have expressed frustration in the last year over the company's aggressive promotions and costly restaurant upgrades.

"Growth for McDonald's is over," one franchisee wrote in response to a survey last fall by the financial services firm Janney Capital Markets.

"I am just hoping to be flat," another franchisee said, referring to sales. "[The] customer has lost faith in the brand."

A third franchisee complained, "They are being successful in bankrupting us."

Considering the sentiment gathered from the survey, it seems unlikely that franchisees will follow in McDonald's corporate's footsteps by raising wages for their employees, as well.

In response to wage announcement Wednesday, a labor group released the following statement from McDonald's employee Kwanza Brooks.

"This is too little to make a real difference, and covers only a fraction of workers," said Brooks, who works at a Charlotte, North Carolina McDonald's making $7.25 an hour. "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."

NOW WATCH: Animated map of what Earth would look like if all the ice melted



More From Business Insider