McDonald's boosts pay, adds paid leave at 1,500 restaurants

McDonald's is giving a raise and new benefits to the roughly 90,000 employees who work at the 1,500 U.S. restaurants the company owns and operates, the fast food giant announced Wednesday. Starting July 1, workers will get at least $1 over minimum wage, for an average pay of $9.90 an hour. Employees with at least a year on the job will also be eligible for up to five days of paid leave a year.

The across-the-board pay raise won't directly affect the bulk of McDonald's workers — 750,000 people work at 12,500 McDonald's eateries owned by 3,100 franchisees in the U.S. alone — but all U.S. workers will be able to take advantage of a new program allowing employees to get their high school diploma online free of charge, plus some assistance with college tuition.

"Motivated teams deliver better customer service," new McDonald's CEO Steve Easterbrook told The Wall Street Journal, "and delivering better customer service in our restaurants is clearly going to be a vital part of our turnaround." Outside analysts say the move by McDonald's is in response to wage pressures from the improving economy and raises handed down to hourly employees by other large U.S. customer-interacting companies.

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