McDonald’s urgently raising wages in US after workers threaten to walk-off the job in 15 major cities

The workers in 650 company-owned stores across the U.S. will get their wage increased in the upcoming period as the franchise confirmed in an announcement to reach the $15 mark by the end of 2024.

According to McDonalds’ announcement, its hourly wages will increase an average of 10% over the next few months to $13 per hour, rising to $15 per hour by 2024.

Experts say this was more than expected since businesses are facing major issues following the Covid-19 pandemic period. They say McDonalds is currently facing three major issues that led to this decision.

The first reason for the wage increase is the tight labor market. Businesses, especially in the low-wage range, are having hard times finding workers. Many people are still using Covid-19 monthly benefits and most of them will hardly get back to work soon.

The second reason for the wage increase is the latest McDonalds workers threat to walk-off the job in 15 major cities if the franchise doesn’t increase their pay.

The last reason is the pressure from other fast-food chains. Many fast-foods chains including Chipotle announced they will increase their workers’ pay to an average of $15 per hour by the end of June. Costco and Amazon were among the many companies also increasing their workers’ pay.

The fast-food giant is now also encouraging its franchisees — which make up 95% of its restaurant base — to boost pay.

Wages and benefits in the first 3 months of this year has seen a general increase across the country. That being said, the wages have been increased for 0.9% on average in United States. This came after restaurants are trying to meet the increased demand as many people are being vaccinated and getting their everyday lives to normal.

However, Fight for $15 and a Union, a labor group which is trying to unionize fast food workers said that this is not enough and they will put all their effort in making companies pay $15 per hours starting as soon as now.

“Clearly, McDonald’s understands that in order to hire and retain talented workers, something needs to change,” union organizer and McDonald’s employee and union organizer Doneshia Babbitt said in a statement. “Now, they’re raising pay for some of us and using fancy math tricks to gloss over the fact that they’re selling most of us short.”

McDonald’s said it didn’t have data on wages at franchised restaurants but said that it’s asking them to follow suit.