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Sonal in Smart Investing & Retirement Plans,

Wages hike by McDonald's will put new pressure on Franchises !

McDonald (NASDAQ:MCD) Who has recently announced the hike will be start in July and applies to 90,000 workers at corporate-owned restaurants now the pressure is lying over local franchisees because they have local labour charges. From the Staring of July company will increase the minimum labour charge by $1 and it is estimating that the hourly average will be higher than 10$ in end of 2016.

McDonald has more than 3100 franchises across the nation and they are individually operated and they have their own charges of payment and benefits. Other companies to recently increases there labour charges include Target , Wal-Mart , T.J. Maxx and the Gap among others.

McDonald labour charges increment comes between the cases of National Labour Relations Board. McDonald's and labour unions are categorising accusations of labour charges and unfair working conditions.The labour board is weighing whether McDonald's is defined as a joint employer with its individual franchisees.

Such a ruling against a major franchisor must first such decision. And for individual franchisees, joint employer status of a ruling in favour of the now independent business owners and corporate regulations will mean more grateful. Business groups such franchise business model will have to get a ruling say.

Comment by the readers:

"Most of the rich do not get any of the tax law benefits. They are phased out of them. EITC, child tax credit, personal exemptions, itemized deductions and savers credit, just to name a few."

"I don't know what the correct hourly rate is but I would rather a worker got paid a decent wage so that a worker receives more money than some one on welfare. We need to start using common sense. A person on welfare receives money and a government worker is paid a salary for administering this program."