Restaurant chains are under pressure to sweeten their benefits as they cope with a tighter labor market. (Photo: Shutterstock)
McDonald's Corp. plans to pump $150 million into tuition assistance for its U.S. employees, becoming the latest corporate giant to use the federal tax overhaul to boost benefits.
The money will help make 400,000 restaurant workers eligible for the program, the fast-food chain said on Thursday. To qualify, workers will only need to be with the company for 90 days, down from nine months, and work 15 hours a week, down from 20. The infusion, paid over five years, triples the current spending level.
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The move bolsters McDonald's Archways to Opportunity program, an effort started in 2015 to help workers earn a high school diploma, pay for college tuition or learn English. Restaurant chains are under pressure to sweeten their benefits as they cope with a tighter labor market. Starbucks Corp. said in January that it was spending $250 million on new worker perks, including higher pay and paid sick time.
At McDonald's, crew members will now be able to get up to $2,500 a year in tuition help, up from $700. Managers will get as much as $3,000 a year, compared with $1,050 previously. The Oak Brook, Illinois-based company cited U.S. tax changes, which lowered corporate rates to 21 percent from 35 percent.
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