wage – Michmutters
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Business

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

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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Categories
Australia

Federal government promises to fund potential pay rise for aged care workers

The Federal Government has promised to pick up the bill for any potential pay rise for aged care workers in a submission to the Fair Work Commission (FWC).

The independent wages umpire is considering a case brought forward by the unions, calling for a 25-per-cent pay increase for 200,000 residential and home care workers.

While stopping short of nominating how much wages should rise, the Commonwealth argued in its submission that the existing award rates do not reflect the value and skills of the sector.

Minister for Employment and Workplace Relations Tony Burke said the COVID pandemic had exacerbated pressures on the workforce and underlined the case for a pay increase.

“Right now, there is no doubt their work is undervalued. We need to change that,” he said.

“Our government is prioritizing these workers as we fight to get wages moving again.”

Unions celebrate commitment

The Health Services Union welcomed the government’s submission, arguing the aging population and changing expectations had made the roles more complex.

National president Gerard Hayes said the government’s submission was a shot in the arm for the sector.

“Older Australians will not get the care they deserve until we can attract and retain a workforce to look after them,” he said.

“The Government has understood this and taken action.

“We are hopeful the Fair Work Commission will make a decision that recognizes the work value of aged care.

“A decent pay rise is beyond overdue.”

A man in a black shirt and glasses sits at a desk
Health Services Union president Gerard Hayes says Australia has allowed aged care workers to be exploited and overworked for too long.(ABC News: Laura Brierley Newton)

The Interim CEO of employer group Aged and Community Care Providers Association Paul Sadler said the case for a pay rise was strongest for registered and enrolled nurses and personal care workers.

“It would not surprise me to see that the increase for these key workers will be certainly up towards that 25 per cent level,” he said.

“The sooner this decision is made the better, but we do support a staged implementation of the increase.”

An election promise

Lifting the pay of aged care workers was a key recommendation of the Royal Commission into Aged Care Quality and Safety’s final report last year.

During the election campaign, Labor promised if it won the government it would make a submission to the FWC in support of a pay rise for the workforce.

The commitment was criticized by then-prime minister Scott Morrison, who questioned how Labor would fund any increase, instead opting to give aged care workers across the country two standalone payments of $400.

Workforce shortages

Unions and industry groups have argued pay increases are needed to attract and retain skilled workers for the sector.

Aged Care Minister Anika Wells said a pay rise was the first step to addressing workforce shortages.

“We need more staff in aged care and a pay rise is the start of ensuring workers are rewarded for the crucial roles they play,” she said.

“One of the main causes of the gender pay gap is low pay and poor conditions in care sectors like aged care, where the majority of workers are women.

“Increasing wages in aged care is essential to ensuring that men and women are paid equally.”

Wells is sitting next to some out-of-focus colleagues.  She has her hand under her chin.
The Albanian government has committed to funding any proposed wage increase.(ABC News: Matt Roberts)

If the unions’ case is successful, the FWC would vary the aged care award, the document outlining minimum pay rates and conditions for the sector.

That change could see the minimum wage for aged care workers rise by at least $5 an hour.

The minimum wage of a qualified personal carer would be bumped up from $23.09 to $28.86 an hour, dependent on salaries when the application was lodged.

Under the union’s proposal a level 1 aged care worker could see their weekly pay increased from just over $800 to more than $1,000.

The case has been before the FWC since 2020.

It is due to hear from the government and unions when it holds hearings this month.

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