Mr. Easterbrook said the franchisees are expertsat setting the right pay levels in their local markets. Asked if McDonalds would consider requiring them to enhance pay or benefits in future contracts, he said absolutely not.A 47-year-old U.K. native, Mr. Easterbrookhas vowed bold changes to transform the Golden Archesinto what he calls a modern, progressive burger chain. Net income last year fell 15% to $4.76 billion, while revenue fell 2% to $27.4 billion, amid growing competition and discontent from some customers over McDonalds food and service.In addition to the pay increases and time off, McDonalds is instituting a program to allow all U.S. workerseven those at franchised restaurantsto get their high-school diploma free through an online program, which could otherwise cost anywhere from $200 to $1,500, depending on the program. McDonalds is also going to start providing eligible workers at both company-owned and franchised restaurants $700 in tuition assistance for college credits obtained through McDonalds training courses.In the interview, his first since becoming CEO, Mr. Easterbrook promised more changes. Dont be surprised to be surprised, he said. Im comfortable making the big decisions that are required to get the turnaround going.Days after Mr. Easterbook took the helm last month, McDonaldsannounced plans to curtail antibiotic usein its chicken in the U.S., an effort to address growing public-health concern around drug-resistant bacteria. The company next monthwill start testing sales of its breakfast itemsthroughout the daysomething customers have long clamored for but the company has resisted because of logistical limitations in its kitchens.The broader impact of U.S. wage increases might not be all positive. A Congressional Budget Office report last year found that raising the federal minimum wage to $10.10 an hour would eliminate about 500,000 jobs nationwide, even as it would be expected to increase pay for 16.5 million workers.Mr. Grimes, the University of Michigan economist, said recent pay increases at big companies could be driven by more by political pressure or fear of unionization than the labor market, and that the moves could cause employers to replace workers with machines, such as self-checkout registers, or pressure managers to limit the number of hours employees work each week.