McDonald's wins temporary overhaul of fast food work rules
A hard fought change to pay and conditions rules at McDonald's has been approved by the national industrial tribunal.
The change to the Fast Food Industry Award, which traded some working hours and overtime pay for greater job security during the coronavirus pandemic and covers McDonald's' 107,000 mostly young employees, caused a stoush within the union movement.
McDonald's has won a temporary change to the fast food industry award.Credit:Jason South
The Retail and Fast Food Workers Union opposed the deal, arguing the changes would not save jobs but would effectively casualise part-time workers in the industry, and was joined by the CFMMEU's Victorian construction division in attacking the shopworkers' union and ACTU, which backed it.
Those groups, along with McDonald's representative the Australian Industry Group, said the changes were essential to save jobs and came with safeguards.
Along with a full bench of the Fair Work Commission, Justice Iain Ross decided to alter the award temporarily for businesses and workers that cannot get JobKeeper on Tuesday with immediate effect.
"We accept that the proposed variation may result in low paid employees receiving less pay than they would for the same hours under the current terms of the award," Justice Ross wrote in the decision.
He said that would mean workers would have a harder time meeting their needs, but that the changes would also help to keep "as many employees as possible in employment" was also an important consideration for the tribunal.
Though McDonald's and the Shop, Distributive and Allied Employees Association had agreed the changes should last for three months, the commission decided that they should end by July 31 because conditions in the industry are improving.
It rejected a provision allowing McDonald's to close down parts of outlets, finding it "lacks merit" and was not supported by any of the unions. Another provision giving McDonald's the power to direct its employees to take leave where it would "assist the employer to avoid or minimise the loss of employment" was approved.
About 17,400 McDonald's employees work in the company's own outlets, which are unlikely to be able to access JobKeeper because very large businesses have to have lost more than half their revenue to be eligible. Almost 80 per cent are casual workers while there are almost 3000 part-timers.
Under the new rules, part-time workers can have their hours reduced down to a minimum of eight and then be offered additional shifts beyond their set roster without the overtime that would usually attract.