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# McDonald's Issues Minimum Wage Hike

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<!-- video src="https://cdn.jwplayer.com/manifests/GgaloBTm.m3u8" -->
## Video: McDonald's Issues Minimum Wage Hike

[Watch (HLS stream): McDonald's Issues Minimum Wage Hike](https://cdn.jwplayer.com/manifests/GgaloBTm.m3u8) (2:06)

![McDonald's Issues Minimum Wage Hike](https://cdn.jwplayer.com/v2/media/GgaloBTm/poster.jpg?width=720)

_Published 2015-04-02. On Wednesday, McDonald's announced a wage raise for some of its workers. It joins other large retailers in raising wages without a federal push._


---

Jul 27, 2023 6:07 PM UTC

---

## More From This Series

[All Videos](https://time.com/video/)

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### Minimum Wage Hike? GOP Candidates Say No

[McDonald's Wage Protests Continue as Shareholders Meet](/video/JOSYkT0X/)

### McDonald's Wage Protests Continue as Shareholders Meet

[Minimum Wage Hike in Californa](/video/mUKKJz7M/)

### Minimum Wage Hike in Californa

---


## Transcript

On Wednesday, McDonald's announced it's raising wages by a dollar an hour for some of it's lowest paid workers, but the raise won't apply to franchise employees which is about 90 percent of McDonald's workers. The company is the latest in a trend of large retailers announcing plans to hike up wages without a mandate. From the Federal Government. The Federal minimum wage has been set at 7. 25 an hour since 2009. Last year, a bill to raise it to 10. 10 an hour stalled in the Senate. That 10. 10 rate is backed by the White House. Ask yourself, could you live on $ 14, 500 a year? That's what someone working full time on the minimum wage makes.

States have had more success mandating higher wages, with 29 states having raised their minimum wage higher than the federal level and many cities have as well, including Seattle. With this vote. Seattle will become the first major city in the United States to win a $ 15 an hour minimum wage. On Wednesday, Seattle began a gradual process to raise its minimum wage to that $ 15 mark by 2017. Conservatives typically oppose minimum wage laws, saying wages should be set by the market and high profile companies raising their lowest rages as unemployment slips below 5. 5 %. Would seem to support that.

Former Florida Governor Jeb Bush voiced that position during a campaign stop in South Carolina earlier this month. We need to leave it to the private sector. But those private sector changes are still much lower than the 15 dollars an hour workers have been calling for during protests across the country. A worker at a McDonald's franchise told The Wall Street Journal, they say they're raising wages, but this is nothing near a living wage. It's just smoke and mirrors. And analysts are also questioning the motivation behind the move. You don't know how much of this is a, is, is for PR advertising, Right.

how much. For wage pressure. That's my question, is this intrinsically motivated or is this extrinsically motivated? In the announcement, McDonald's CEO Steve Easterbrook explained the raise, saying we know that a motivated workforce leads to better customer service. McDonald's workers at corporate owned stores will see their wages increase by $ 1 over the local minimum starting July 1st.

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