McDonald’s increases wages by 10 percent due to labor shortage

McDonald’s increases wages by 10 percent due to labor shortage

McDonald’s said on Thursday that it would increase the hourly pay of its rank-and-file employees by 10 percent as it seeks to add 10,000 workers to its company-owned eateries amid a nationwide labor shortage.

The world’s largest restaurant company said entry-level employees would now be paid between $ 11 and $ 17 an hour, while managers would make anywhere from $ 15 to $ 20 to an hour. The wage increase will also apply to 35,600 existing McDonald’s employees, some of whom have already received the increase, the company said.

McDonald’s USA President Joe Erlinger said in a message to American workers, “Together with our franchisees, we face a challenging work environment, and staying ahead means that we are among the leading employment packages in the industry One must continually renew its commitment to offer. “

McDonald’s said it expects all of its company-owned stores to pay workers an average of $ 15 an hour by 2024, with some coming in early this year.

Wage increases among one of the toughest labor markets in history with a record 8.1 million job openings in March. Critics have partially blamed generous unemployment benefits including a $ 300 weekly COVID-19 sweetener from the federal government. Workers have also cited lack of childcare services and health and safety concerns.

A worker cleans the floor at McDonald's in Chicago on March 19.  Some workers say they are reluctant to return to health and safety concerns.
A worker cleans the floor on March 19 at McDonald’s in Chicago. Some workers say they are reluctant to return to health and safety concerns.
Scott Olson / Getty Images

Some of McDonald’s franchises are handing out hiring and referral bonuses to attract employees. As previously reported by The Post, a McDonald’s manager in Florida offered $ 50 to interview potential candidates for the job – and said he had no takers after two weeks.

This week Chipotle Mexican Grill said its average salary would reach $ 15 per hour by the end of June as it pushed 20,000 workers to work.

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