Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

McDonalds Workers Respond To Wage Hike Announcement With Protests

Published 04/02/2015, 09:16 AM
Updated 04/02/2015, 09:45 AM
© Reuters/Eduardo Munoz. A member of the liberal protest group 'MoveOn' holds up a poster during a protest in front of McDonald's restaurant in Times Square, New York, on Dec. 4, 2013. On Thursday, McDonald's workers around the country plan to protest the company's recent announcement of a wage hike that doesn't cover all of its workers.

By Aaron Morrison -

© Reuters/Eduardo Munoz. A member of the liberal protest group 'MoveOn' holds up a poster during a protest in front of McDonald's restaurant in Times Square, New York, on Dec. 4, 2013. On Thursday, McDonald's workers around the country plan to protest the company's recent announcement of a wage hike that doesn't cover all of its workers.

Fast-food employees are not “lovin” McDonald’s announcement this week that it will raise wages one dollar above locally-mandated minimum wages. The pay hike, they say, doesn’t cover the vast majority of minimum wage earning employees in its 12,500 franchise stores. On Thursday, hundreds were expected to temper the fast-food giant’s announcement with protests at chain locations in more than two dozen U.S. stores.

The workers, who are part of the group “Fight for $15,” a movement demanding $15 per hour for all fast-food workers in the U.S., will criticize McDonald’s move and demand larger raises and the right to form a union without retaliation, said Barteees Cox, a spokesperson for the workers group. Many of McDonald’s cooks and cashiers make wages that put them at or below the poverty like, and many say they cannot support their families at the rates offered by McDonald’-owned locations and franchisees’ stores.

McDonalds announced Wednesday that it will boost pay for 90,000 of 750,000 U.S. employees to $1 above the mandated minimum wages in July, reaching more than $10 by 2017. However, the pay hike only applies to workers at restaurants officially owned by McDonald’s, or about 10 percent of the company’s locations nationwide. According to Fight for $15, about 1.6 million workers worldwide will not see a raise at all. Franchisees set their own wages.

“Nearly everyone who works at McDonald’s will still get paid less than $10 an hour – not enough to pay the bills,” said Emma Stieglitz, a representative of the protest group. “In many places, McDonald's (NYSE:MCD) workers earn the federal minimum of $7.25, which means even those who will see an increase as a result of Wednesday's publicity stunt will still be stuck trying to support families on $8.25 an hour.”

McDonald’s wage announcement came a day after workers announced they would stage the biggest-ever strike in fast-food industry — a 200-city restaurant walkout on April 15. The wage hike also comes on the heels of pay increases in the low-paying retail sector: Walmart (NYSE:WMT), Target and TJX, which owns T.J. Maxx and Marshall’s, have boosted pay over the last two months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.