Labor organizers displeased with McDonald's Corp.'s decision to raise wages only for workers at company-owned stores, leaving out employees at franchises, organized nationwide protests against the new policy Thursday.
Planners said that workers in dozens of cities including Los Angeles, New York, Detroit and Las Vegas were protesting what some called a disingenuous strategy from the fast-food giant, which is based in suburban Chicago.
On Wednesday, McDonald's said it would start paying U.S. workers at least a dollar more than the local minimum wage at corporate restaurants beginning in July. It also said it would offer paid time off for some workers.
Company-owned U.S. restaurants represent about 10 percent of more than 14,300 locations.
The move marks the first time McDonald's has set a national policy on wages, according to the company. McDonald's has been a primary target for ongoing demonstrations by those who want to unionize and receive hourly pay of $15. Other companies, including Wal-Mart Stores Inc., have announced pay increases at a time when the economy is improving and worker issues are getting widespread attention.
Immediately after the announcement by McDonald's, however, labor organizers denounced it as a publicity strategy that did little to improve the situations of workers.
"Raising wages only a little for only a small fraction isn't change. It's a PR stunt," said Kwanza Brooks, a McDonald's worker in North Carolina, on a conference call set up by organizers.
Protests were planned for McDonald's stores in about 24 cities, although turnout for the events have varied in the past.
In New York City, a crowd of about 30 people gathered outside a McDonald's across the street from the Empire State Building before marching several blocks to another McDonald's. Demonstrators filed into the restaurant, chanting and waving signs until they were ushered out by police.
A customer who was inside the store buying lunch, Rich Roman, said he didn't support the push and that he disliked unions.
"They make everything escalate in price," he said.
In addition to the push to raise public awareness, the Fight for $15 campaign, which is being led by the Service Employees International Union, has been pressuring McDonald's on multiple legal fronts. This week, the National Labor Relations Board began a hearing on complaints that named McDonald's as a joint employer over purported violations at franchised restaurants.
The case is a reflection of a primary goal of organizers: to hold McDonald's Corp. accountable for labor practices at its franchised locations. McDonald's on Wednesday emphasized its position that it doesn't have control over employment decisions at those restaurants and that franchisees "make their own decisions on pay and benefits."
In a phone interview, McDonald's USA President Mike Andres said few McDonald's workers have participated in the demonstrations and that the actions haven't hurt the company.
"They're not taking a toll," he said.
Instead, he said the decision to increase pay and provide paid time off at company-owned restaurants was driven by the marketplace.
"It's a very competitive environment, and a significant rationale for this plan is that we want to be the most competitive and attractive employer," he said.
Beginning July 1, McDonald's said, starting wages will be a dollar more than the local minimum wage where company-owned restaurants are located. By the end of 2016, it said, the average hourly wage for McDonald's workers at those stores will be more than $10 an hour, up from $9 an hour.
More than a dozen states and multiple cities raised their minimum wages last year, according to the National Employment Law Project.
McDonald's said that employees at company-owned stores who have worked for at least a year for an average of 20 hours a week will be eligible to accrue about 20 hours of paid time off a year.
McDonald's Chief Administrative Officer Pete Bensen has said that a big part of the effort to turn around the company's struggling U.S. business would be what the company is doing "around the employment image and our employee-employer relationship."
Information for this article was contributed by Tiffany Hsu of the Los Angeles Times and Candice Choi and Josh Boak of The Associated Press.
Business on 04/03/2015