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McDonald’s hit with $250m wage theft claim over rest break entitlements

McDonald's hit with $250m wage theft claim over rest break entitlements

McDonald’s has been hit with a mammoth wage theft case over allegations more than 250,000 current and former workers were denied rest breaks.

The Shop, Distributive and Allied Employees Association (SDA) announced Friday it had lodged a “mega” federal court claim against 328 McDonald’s operators and the fast food giant itself over the alleged denial of paid rest breaks at nearly 1000 current and former restaurants.

The union, which has some 15 existing federal court claims against McDonald’s and its franchisees, said it was seeking $250 million in compensation plus penalties in one of the biggest wage theft claims of its kind in the country’s history, capturing more than 1.8 per cent of working Australians.

Under the Fast Food Award, all McDonald’s workers are entitled to an uninterrupted 10-minute break when working four hours or more. The SDA alleges that not only were employees not informed of their rest break entitlements, but they were also told breaks could be exchanged for a free soft drink or going to the toilet.

The union alleges that the conduct was systematic and deliberate and that McDonald’s Australia aided and abetted franchisees in the practice.

“The SDA has sought to fix this issue with McDonald’s and they’ve refused to resolve it, let alone admit any wrongdoing,” SDA secretary Gerard Dwyer said in a statement.

“As one of the largest employers of young people in Australia, McDonald’s shouldn’t have to be dragged through the Federal Court for workers to receive their most basic entitlements.

“Across their restaurants, McDonald’s demands consistency. They make sure each restaurant can put two beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun. It’s simply not believable that these breaks weren’t denied on purpose.

“Just because McDonald’s is a multinational, multi-billion-dollar fast food behemoth doesn’t mean they can pick and choose which laws to follow. McDonald’s has the capacity and a responsibility to ensure they’re giving workers all of their entitlements.

“These federal court claims are not just about compensation and penalizing McDonald’s, it’s about sending a clear message that this systematic exploitation of young workers will not be tolerated. We won’t stop calling out these exploitative behaviors until McDonald’s cleans up their act and compensates workers.”

The SDA is seeking thousands of dollars in compensation for workers who did not receive their legal break entitlements and is asking the court to penalize 400 employers who have operated McDonald’s sites in the past six years.

The union says the $250 million figure is a “conservative estimate”.

McDonald’s has more than 970 restaurants in Australia and employs more than 100,000 people.

The SDA’s existing federal court actions are against McDonald’s Australia and 14 franchisees, spanning 196 sites.

According to the union, more than 10,000 workers have assisted in its investigations into McDonald’s work conditions.

In a statement, a McDonald’s Australia spokeswoman the company “intends to fully defend the claim”.

“McDonald’s believes its restaurants complied with applicable instruments, provided rest breaks to employees and were consistent with historic working arrangements,” she said.

“Those arrangements have been known to the SDA for many years. The manner of taking breaks has not been challenged or raised by the SDA as a matter of concern throughout successive enterprise bargaining processes for new industrial agreements.

“We are very mindful of our obligations under applicable employment laws, including the former enterprise agreement and the Fast Food Industry Award, and continue to work closely with our restaurants to ensure employees receive all correct workplace entitlements and pay.

“We value our employees highly and the great contribution they make to the success of the business.”

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SDA seeks $250m compensation from McDonald’s operators who allegedly denied paid breaks to Australian workers

Accidents continue while road works stall

McDonald’s has been slapped with a wage theft claim of at least $250 million in the Federal Court over alleged denial of paid breaks to workers.

The Shop, Distributive and Allied Employees’ Association (SDA) is seeking compensation on behalf of more than 250,000 current and former McDonald’s workers across Australia.

If successful, the union said the claim would be one of the largest of its kind in Australia’s history.

The SDA is alleging workers at more than 1,000 current and former McDonald’s sites were denied their uninterrupted 10-minute break when working four hours or more during a shift.

South Australia branch secretary Josh Peak said McDonald’s workers were told if they want their paid break, they cannot get a drink or go to the toilet.

He said in almost two years of investigation the union had heard more than 10,000 accounts from former and current employees, including young Australians, at McDonald’s stores across Australia.

“Workers were systematically, deliberately denied the rights to those breaks,” Mr Peak told ABC Radio Adelaide Breakfast.

“It’s just not good enough that a large employer such as McDonalds would create a scheme that leads to people not being paid correctly or getting base entitlements.”

The statement of claim alleged workers had to seek permission to get a drink or go to the bathroom and could be directed to resume work before their 10-minute break was up.

Mr Peak said workers were misled or not informed about their rest break entitlements and the multi-billion dollar corporation should be penalized for it.

“It is really outrageous behavior to be tricking young people into thinking they are not entitled to go the toilet if they used their paid entitlements,” he said.

“Workers never got their paid 10-minute rest break and when workers did ask for it, they were told ‘we don’t do that here because you can go the toilet whenever you like’, which is completely ludicrous.”

Josh Peak SDA
Josh Peak said McDonald’s workers should be entitled to paid breaks.(ABCNews)

The claim named 323 McDonald’s operators who allegedly denied paid rest breaks to workers over the past six years.

McDonald’s Australia issued a statement in which it denied the claims.

“McDonald’s believes its restaurants complied with applicable instruments, provided rest breaks to employees and were consistent with historic working arrangements,” a McDonald’s spokeswoman said.

“Those arrangements have been known to the SDA for many years. The manner of taking breaks has not been challenged or raised by the SDA as a matter of concern throughout successive enterprise bargaining processes for new industrial agreements.

“We are very mindful of our obligations under applicable employment laws, including the former enterprise agreement and the Fast Food Industry Award, and continue to work closely with our restaurants to ensure employees receive all correct workplace entitlements and pay.”

Claim originates from SA

The new claim is in conjunction with the SDA’s 15 existing Federal Court claims against McDonald’s Australia and 14 franchisees — seven of them in South Australia.

In December 2020, 14 McDonald’s employees at the Frewville and Mount Barker restaurants lodged a compensation claim after allegedly being denied their 10-minute rest break.

As a result of that action, the investigation extended nationwide.

A blond woman smiling in a dress with pink balloons in the background
Isabella worked at McDonald’s in Adelaide CBD.(Supplied)

Isabelle, who worked at McDonald’s in the Adelaide CBD for almost five years, said she was not given her entitled 10-minute break, but instead was allowed drink breaks freely during shifts.

“The drink break was only for 20 seconds, or as fast as you could drink and then come back to work straightaway,” she said.

“I’d spoken to my bosses about it and they just told us that we didn’t get them, they chose to do something different, and that it was legal, it was all fine.

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Business

Kyneton residents consider court action to fight development of McDonald’s, Bunnings complex

Three residents stand in front of a vacant paddock holding signs saying 'No Maccas here in Kyneton', 'More Cons than pros'.

Macedon Ranges residents are considering Supreme Court action following a state planning tribunal decision to overturn a council vote to halt a two-part commercial development.

A Kyneton development for a McDonald’s fast-food restaurant, another restaurant, Bunnings and a 24-hour service station was approved by the Victorian Civil and Administrative Tribunal (VCAT) last week after the applicant decided to challenge the council’s decision and the conditions imposed.

Susan McNab is one of the leaders of the fight against the development and said residents were disappointed by the court’s actions.

She said the group would look at viable options to counter the decision, but accepted that a loss in the Supreme Court would be costly.

an architectural drawing of a commercial development
The development will carry a McDonalds restaurant, another convenience restaurant, a Bunnings trade center, and a petrol station. (Supplied / VCAT)

“Naturally, we don’t feel the decision is to the benefit of Kyneton. That part of the town is the main access to nearby reserves and people often go out that way climbing and for classic car rallies and cycling,” she said.

“It’s difficult for many residents to not be considered at VCAT.

“It’s been about the economics of the matter. The council said that area would be developed at some point, but this particular style of development works against Kyneton’s character.”

Big brands coming down the highway

The decision almost confirms the introduction of commercial development in Kyneton, which one community group has labeled the ‘tide of overdevelopment’. Residents fear the big brands will take away the small country charm that the town is known for, with small businesses and well-known eateries losing out.

“The proposal will not detract from the rural character of the Shire. The proposal will reinforce the rural character of the Shire by its location [in a commercial zone] within the protected settlement boundary; [and the] containment of its impacts within the subject land,” VCAT’s decision said.

A woman holds a cardboard sign in each hand. One says 'protect cultural land' and the other says 'support local business'
Lenka Thompson started the Keep Kyneton Country group to fight the proposed development.(Supplied: Lenka Thompson)

The decision by VCAT has caused a stir on social media after attracting hundreds of submissions airing concerns about traffic and safety, and the effect the development could have on the nearby environment and local economy.

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Categories
Business

Kyneton residents consider court action to fight development of McDonald’s, Bunnings complex

Three residents stand in front of a vacant paddock holding signs saying 'No Maccas here in Kyneton', 'More Cons than pros'.

Macedon Ranges residents are considering Supreme Court action following a state planning tribunal decision to overturn a council vote to halt a two-part commercial development.

A Kyneton development for a McDonald’s fast-food restaurant, another restaurant, Bunnings and a 24-hour service station was approved by the Victorian Civil and Administrative Tribunal (VCAT) last week after the applicant decided to challenge the council’s decision and the conditions imposed.

Susan McNab is one of the leaders of the fight against the development and said residents were disappointed by the court’s actions.

She said the group would look at viable options to counter the decision, but accepted that a loss in the Supreme Court would be costly.

an architectural drawing of a commercial development
The development will carry a McDonalds restaurant, another convenience restaurant, a Bunnings trade center, and a petrol station. (Supplied / VCAT)

“Naturally, we don’t feel the decision is to the benefit of Kyneton. That part of the town is the main access to nearby reserves and people often go out that way climbing and for classic car rallies and cycling,” she said.

“It’s difficult for many residents to not be considered at VCAT.

“It’s been about the economics of the matter. The council said that area would be developed at some point, but this particular style of development works against Kyneton’s character.”

Big brands coming down the highway

The decision almost confirms the introduction of commercial development in Kyneton, which one community group has labeled the ‘tide of overdevelopment’. Residents fear the big brands will take away the small country charm that the town is known for, with small businesses and well-known eateries losing out.

“The proposal will not detract from the rural character of the Shire. The proposal will reinforce the rural character of the Shire by its location [in a commercial zone] within the protected settlement boundary; [and the] containment of its impacts within the subject land,” VCAT’s decision said.

A woman holds a cardboard sign in each hand. One says 'protect cultural land' and the other says 'support local business'
Lenka Thompson started the Keep Kyneton Country group to fight the proposed development.(Supplied: Lenka Thompson)

The decision by VCAT has caused a stir on social media after attracting hundreds of submissions airing concerns about traffic and safety, and the effect the development could have on the nearby environment and local economy.

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Categories
Business

KFC launches plant-based popcorn chicken, Wicked Wings

KFC launches plant-based popcorn chicken, Wicked Wings

Fans of fast food giant KFC have gotten a hot new take on a favorite menu item for a limited time only – but not everyone’s convinced.

KFC has announced a new meat-free option that takes the iconic spice of Wicked Wings and packs it into delectable bite-sized morsels known from the fast-food giant’s Popcorn Chicken.

Wicked Popcorn is completely plant-based – however the menu item is currently only being trialled at select outlets in NSW.

A sampling of the Wicked Popcorn in news.com.au’s newsroom had those tasting it divided.

“The weird fake chicken is actually pretty good?” one offered, while another admitted, “I think I prefer it to normal popcorn chicken.”

But not everyone agreed – others found it “rubbery” and that it “tasted like broccoli”.

From August 9 to September 5, Wicked Popcorn, the Wicked Popcorn Bowl and Wicked

Popcorn Combo can be purchased from 14 KFC restaurants on the South Coast.

In addition, KFC has dropped a brand-new Lime Ranch dipping sauce to combine spicy, zest and crunch.

Sally Spriggs, CMO at KFC Australia, commented: “We’re excited to serve up Wicked Popcorn – an innovative product that offers more choice on our menu.

“We’re always looking to treat our fans with new products, so we hope they’ll enjoy this meat-free option which offers that great KFC taste our fans know and love.

“South Coast locals should head down to KFC for the limited-time offer and try it while they can.”

The Wicked Popcorn can be purchased from the 14 restaurants or the KFC app.

A snack-sized Wicked Popcorn and Lime Ranch sauce retails for just $2.95.

The offer is for a limited time only.

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Categories
Business

Teal MP Sophie Scamps plans private member’s Bill on junk food advertising and marketing

Teal MP Sophie Scamps plans private member's Bill on junk food advertising and marketing

A teal independent is pushing to change the way junk food advertising and marketing is regulated in a bid to stop Australia’s growing childhood obesity “epidemic”.

Sophie Scamps, who was a GP on Sydney’s northern beaches until recently becoming the MP for Mackellar, will put together a private member’s Bill to target fast-food advertisement and sponsorship.

The Bill is focused on the impact junk food has on children’s health, with Dr Scamps seeking to tackle the industry’s prevalent advertising during prime-time television, promotion on social media and its sponsorship of children’s sport.

“We do have an epidemic of overweight and obesity in this country and children are affected by that,” she told NCA NewsWire.

“We need to make the healthy food choices that parents are providing for their children the easy choice, we need to minimize that pest power.

“What I’m calling for really is a regulation of junk food advertising to children across TV and social media channels.”

Dr Scamps said childhood obesity not only creates issues for the individual involved, but the whole Australian health industry.

She said this makes taking preventive measures early on in people’s lives so important.

“Obesity and being overweight creates so many chronic diseases, everything from cancers, to diabetes, to heart disease, strokes, even depression,” she said.

“We also know with children that it’s much harder to gain a normal weight into the future if you have the problem when you’re a child.

“You can see into the future there’ll be a massive burden of disease created by this epidemic. So we either act now or we start investing in our public hospital system.”

But junk-food advertising remains a fixture of any prime-time television viewing experience, and some of the industry’s biggest restaurant chains sponsor the largest sports codes and teams from around the country.

Dr Scamps said junk food advertising through sport can have a big impact on a child’s health choices.

“We know that sport does influence children’s decisions, and we no longer advertise tobacco or alcohol to sport,” she said.

It’s another thing to look at, who is advertising or children’s sport?

The National Obesity Strategy, which was released in March earlier this year, noted that Australians “are regularly exposed to unhealthy food and drink marketing”, which included multimedia advertising and sports sponsorship.

It revealed an average five to eight-year-old child who watches around 80 minutes of television per day is exposed to 827 advertisements and four hours of “unhealthy food advertising” each year on free-to-air television.

A key potential strategy in the 10-year framework is reducing “unhealthy food and drink advertising, branding and sponsorship” to stop childhood obesity.

While the Bill is in its “early stages”, Dr Scamps believed it would be supported by parents and other MPs.

“It’s a common sense measure, it’s something that there’s precedent for. Mindsets change quite quickly once they’re introduced,” she said.

“I think parents will welcome because parents want the best for their children. They want those healthy choices to be the easy choices, they don’t want to be pestered at the checkout.

“As we’ve seen, there’s a lot of doctors who are new in the parliament as well.”

The Bill has the support of the Obesity Policy Coalition, with the group’s executive manager Jane Martin calling for urgent action to improve children’s diet habits.

“Our children deserve to go about their daily lives without being bombarded by ads for unhealthy food and sugary drinks which is the wallpaper that surrounds their lives,” Ms Martin said.

“Kids should be free to enjoy their favorite prime-time TV shows like Lego Masters without seeing ads for cookies or attend their weekend footy or netball games without fast-food sponsorships.

“This marketing influences children’s diets and impacts what kids want to eat, what they ask for and shapes their palates from an early age.”

The practices of the advertising industry are generally self-regulated through the Australian Association of National Advertisers’ Ad Standards code.

The code was updated last year to stop images of junk food being used in sponsorship advertising targeting children.

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