Washington: McDonald's has announced it will raise the wages of some of employees by about 10 per cent to an average US$9.90 ($13.02) per hour from around $9.01 per hour, higher than most minimum wages in the United States, including the federal minimum of $US7.25.
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The increase will only effect the 90,000 employees of outlets owned by McDonalds. Around 90 per cent of McDonalds restaurants in America are owned by franchisees.
It comes in the wake of a sustained campaign by labour groups for a $US15 minimum wage, and before a presidential election in which economic justice is expected to be key issue.
The movement was spurred by a report by the University of California in 2013 that found fast food wages were so low that 52 per cent of the industry's frontline workers were eligible for anti-poverty assistance from the federal government, which translated to a taxpayer subsidy to restaurant owners of around US$7 billion per year.
McDonalds made a profit of US$5.6 billion last year.
The campaign resulted in a series of strikes last year, and more are set to begin this year.
But in announcing the increases the McDonald's chief executive, Steve Easterbrook, said the increases were designed to attract more motivated staff in a bid to revive sales that have flagged for the past two years.
"What we need to underpin that is highly motivated teams in our restaurants," he told The Wall Street Journal. "Motivated teams deliver better customer service and delivering better customer service in our restaurants is clearly going to be a vital part of our turnaround."
Australia's high minimum wages have been used by US labour advocates as evidence that McDonald's could afford to pay more to its workers and remain profitable.
Even on the increased wages a McDonalds worker would earn just $US20,592, for working the standard 40 hour week without a holiday, though McDonald's plans to begin to pay full-time staff with over a years' service a week's paid leave.
McDonald's decision comes after US unemployment rates have dropped and after other major employers including Walmart, the nation's largest private employer, flagged pay increases.
