Investing.com -- McDonald's (NYSE:MCD) announced an enhanced benefit packages for its employees on Wednesday, which will include a wage hike to roughly $10 an hour for approximately 90,000 workers nationwide, the company said in a statement.
On July 1, starting wages at McDonald’s restaurants in the U.S. will be one dollar over the locally-mandated minimum wage, the company said. By the end of 2016, McDonald’s projects that the average hourly wage rate for all employees at company-owned restaurants will be over $10. In addition, an employee with one year of service who works an average of 20 hours per week will be eligible to accrue approximately 20 hours of paid time off a year starting July 1.
While the enhanced benefits apply to McDonald's company-owned restaurants, the company said its franchise-operated restaurants reserve the right to make their own decisions on wages and benefits. There are more than 3,100 franchise-run McDonald's restaurants in the U.S.
“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,” McDonald’s President and CEO Steve Easterbrook said 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.”
The wage hikes come in the wake of a flurry of protests by McDonald's workers nationwide demanding higher wages and increased benefits. In late-December, an attorney from the National Labor and Relations Board (NLRB) filed a complaint against the company alleging worker abuse over wage protests.
Easterbrook was named CEO of McDonald's in January, following the retirement of predecessor Don Thompson. At the time, McDonald's stock only increased roughly 1% in Thompson's 31 months as company CEO. The company also endured a period of 13 consecutive months when it failed to post a gain in sales.
On Wednesday, shares of McDonald's fell 1.18% or 1.15 to 96.29.