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| McDonald’s Will No Longer Lobby Against Federal, State and Local Minimum-Wage Increases | |
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| In an abrupt shift, a top McDonald’s official said Tuesday that the company would no longer lobby against minimum-wage increases at the federal, state or local levels. | In an abrupt shift, a top McDonald’s official said Tuesday that the company would no longer lobby against minimum-wage increases at the federal, state or local levels. |
| The announcement, which was simultaneously cheered by supporters of higher pay and criticized as a publicity stunt by some in the restaurant industry, was included in a letter that a McDonald’s vice president wrote to officials at the National Restaurant Association. | The announcement, which was simultaneously cheered by supporters of higher pay and criticized as a publicity stunt by some in the restaurant industry, was included in a letter that a McDonald’s vice president wrote to officials at the National Restaurant Association. |
| In the letter, a copy of which was obtained Wednesday by The New York Times, the McDonald’s vice president, Genna Gent, said that the company would “not use our resources, including lobbyists or staff, to oppose minimum wage increases” at any level, and that it would not “participate in association advocacy efforts designed expressly to defeat wage increases.” | In the letter, a copy of which was obtained Wednesday by The New York Times, the McDonald’s vice president, Genna Gent, said that the company would “not use our resources, including lobbyists or staff, to oppose minimum wage increases” at any level, and that it would not “participate in association advocacy efforts designed expressly to defeat wage increases.” |
| “We do have a perspective on elements of this discussion,” she wrote. “We believe increases should be phased in and that all industries should be treated the same way.” | “We do have a perspective on elements of this discussion,” she wrote. “We believe increases should be phased in and that all industries should be treated the same way.” |
| “The conversation about wages is an important one; it’s one we wish to advance, not impede,” she wrote. | “The conversation about wages is an important one; it’s one we wish to advance, not impede,” she wrote. |
| McDonald’s Corp. declined to comment on Wednesday. | McDonald’s Corp. declined to comment on Wednesday. |
| Ms. Gent’s remarks thrust McDonald’s into the middle of the ongoing and sometimes contentious national debate about worker pay and what constitutes a living wage. Federal lawmakers, including several Democratic presidential hopefuls, have increasingly sought to help lower-income workers whose wages have remained stagnant as corporate profits have grown, housing prices have skyrocketed, and a homelessness crisis is gripping many urban areas. | Ms. Gent’s remarks thrust McDonald’s into the middle of the ongoing and sometimes contentious national debate about worker pay and what constitutes a living wage. Federal lawmakers, including several Democratic presidential hopefuls, have increasingly sought to help lower-income workers whose wages have remained stagnant as corporate profits have grown, housing prices have skyrocketed, and a homelessness crisis is gripping many urban areas. |
| A bill that would gradually raise the minimum wage to $15 over five years from the current federal hourly rate of $7.25 was introduced in Congress earlier this year. In the meantime, several states, including New Jersey, California, New York and Massachusetts, have adopted plans to gradually move toward that milestone. Expensive cities like New York and the District of Columbia have also raised the minimum wage to that level while some major corporations, including Target, Amazon and the Gap, have increased pay for their own employees. | A bill that would gradually raise the minimum wage to $15 over five years from the current federal hourly rate of $7.25 was introduced in Congress earlier this year. In the meantime, several states, including New Jersey, California, New York and Massachusetts, have adopted plans to gradually move toward that milestone. Expensive cities like New York and the District of Columbia have also raised the minimum wage to that level while some major corporations, including Target, Amazon and the Gap, have increased pay for their own employees. |
| Still, advocates for higher minimum pay said that as one of the world’s largest employers with more than 800,000 workers in the United States, McDonald’s has long been a public face of low wages. They pointed to the change in the company’s stance as a signal that fighting wage increases has become untenable. | Still, advocates for higher minimum pay said that as one of the world’s largest employers with more than 800,000 workers in the United States, McDonald’s has long been a public face of low wages. They pointed to the change in the company’s stance as a signal that fighting wage increases has become untenable. |
| “Having a player like McDonald’s say ‘We’re not going to fight this any more’ is a big deal,” said Tsedeye Gebreselassie, a lawyer for the National Employment Law Project, which advocates for low-wage workers. “I think it shows that a $15 minimal wage has been normalized.” | “Having a player like McDonald’s say ‘We’re not going to fight this any more’ is a big deal,” said Tsedeye Gebreselassie, a lawyer for the National Employment Law Project, which advocates for low-wage workers. “I think it shows that a $15 minimal wage has been normalized.” |
| But the announcement was also greeted with some skepticism. An expert on restaurant lobbying who requested anonymity because of McDonald’s power in the industry said the chain’s repositioning appeared to be at least in part a political publicity stunt. More than 90 percent of McDonald’s restaurants worldwide are owned and operated by independent franchisees, according to the company’s website. It is those franchisees, not McDonald’s Corp.’s bottom line, that the expert worried could be most affected. | But the announcement was also greeted with some skepticism. An expert on restaurant lobbying who requested anonymity because of McDonald’s power in the industry said the chain’s repositioning appeared to be at least in part a political publicity stunt. More than 90 percent of McDonald’s restaurants worldwide are owned and operated by independent franchisees, according to the company’s website. It is those franchisees, not McDonald’s Corp.’s bottom line, that the expert worried could be most affected. |
| Officials with the National Owners Association, an independent advocacy group of McDonald’s franchisees, did not immediately respond to a request for comment on Wednesday. A spokesman for the U.S. Chamber of Commerce said it would not comment “on individual company decisions.” | Officials with the National Owners Association, an independent advocacy group of McDonald’s franchisees, did not immediately respond to a request for comment on Wednesday. A spokesman for the U.S. Chamber of Commerce said it would not comment “on individual company decisions.” |
| The National Restaurant Association has argued that only a small fraction of food service workers earn the federal minimum wage, and that most get a raise within six months. | The National Restaurant Association has argued that only a small fraction of food service workers earn the federal minimum wage, and that most get a raise within six months. |
| “The National Restaurant Association is the largest food service trade association in the world, representing every aspect of the industry,” the association said in a statement on Wednesday. “Our members are as diverse as the communities they serve, and the economies of every region are different.” McDonald’s, the association added, is “a valued member.” | “The National Restaurant Association is the largest food service trade association in the world, representing every aspect of the industry,” the association said in a statement on Wednesday. “Our members are as diverse as the communities they serve, and the economies of every region are different.” McDonald’s, the association added, is “a valued member.” |
| In her letter, which was first reported by Politico, Ms. Gent, the McDonald’s vice president, said the average starting wage in the company’s corporate-owned stores is already more than $10 per hour, above the federal minimum set a decade ago. Though the company does not control the wages franchisees pay their employees, she said the average starting wages for those workers were “likely similar.” | In her letter, which was first reported by Politico, Ms. Gent, the McDonald’s vice president, said the average starting wage in the company’s corporate-owned stores is already more than $10 per hour, above the federal minimum set a decade ago. Though the company does not control the wages franchisees pay their employees, she said the average starting wages for those workers were “likely similar.” |
| “We recognize that overall wages reflect the realities of different communities and that elected leaders have the responsibility to set, debate and change mandated minimum wages,” the letter said. | “We recognize that overall wages reflect the realities of different communities and that elected leaders have the responsibility to set, debate and change mandated minimum wages,” the letter said. |
| Terrance Wise, a McDonald’s worker in Kansas City and a leader of the Fight for $15 campaign, said its fight would continue even after the announcement. | |
| Workers have long called both for a $15 minimum wage and union rights, he said, “and we’re not going to stop marching, speaking out and striking until we win both.” | Workers have long called both for a $15 minimum wage and union rights, he said, “and we’re not going to stop marching, speaking out and striking until we win both.” |