McDonald's Plans to Boost Employee Pay, Offer Vacation Time


As a planned major wage protest bears down on McDonald’s this month, the company said Wednesday that it will raise pay at company-owned locations to at least $1 more than the local minimum wage and begin offering vacation benefits.

The move, which takes effect on July 1, will apply to more than 90,000 workers, the company said. It won’t affect the more than 90% of restaurants that are run by franchisees. By the end of 2016, the fast-food chain expects workers at company-owned locations to earn more than $10 an hour on average.

In its pledge to improve pay and benefits, McDonald’s is also joining a growing roster of major U.S. employers. In recent months, Wal-Mart, Target and TJX Cos. have all vowed to boost pay to at least $9 an hour this year. The companies are working to better retain workers and bolster productivity.

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