Franchisees file application for review of Fair Work Commission ruling
McDonald's is seeking a judicial review of the Fair Work Commission's supported bargaining authorisation that involved 18 of its South Australian franchisees.
The FWC ruled that it was appropriate for the franchisees and their employees to be covered by multi-enterprise bargaining, ordering them to negotiate pay and conditions with unions.
But the franchisees involved have filed for a review of the FWC's supported bargaining authorisation — a move supported by the Australian Industry Group.
"Ai Group welcomes the decision of McDonald's franchisees in South Australia to apply to the Federal Court for review of the recent supported bargaining decision of the FWC," said Ai Group Chief Executive Innes Willox in a statement to HRD.
"If the interpretation adopted by the FWC prevails, employers in a wide range of industry sectors could be forced to negotiate multi-employer agreements with unions, regardless of the needs of their businesses or the wishes of their own employees. This includes employers in the fast food, hospitality and retail industries."
McDonald's 'true feelings'
Meanwhile, the Shop, Distributive, and Allied Employees' Association (SDA) said McDonald's should be respecting the FWC's decision.
"This appeal says a lot about McDonald's true feelings about its workers," said SDA National Secretary Gerard Dwyer in a statement.
"As the biggest employer of young people, McDonald's should be respecting the umpire's decision and getting on with the job of opening up bargaining with some of the lowest-paid workers in the country."
According to Dwyer, supported bargaining laws are designed to give low-paid workers access to enterprise bargaining.
"The SDA will be supporting the FWC's eminently justifiable decision to give these low-paid workers a fair go at improved wages and conditions," he said.
The SDA lodged an application last week to extend the bargaining orders to McDonald's franchisees nationwide, calling it the "logical next step."
Urgent reforms urged
The FWC cited in its supported bargaining authorisation the prevailing low rates of pay in the industry, as well as the broad degree of similarity both in the substance of their operations and the way they are presented to the public.
It also pointed out that the work performed by employees across all McDonald's restaurants is "fundamentally the same."
The Ai Group has argued that supported bargaining authorisations have only been issued in government-funded sectors, such as aged care, childcare, and community services, because the outcomes of bargaining are heavily dependent upon the funding provided by the government.
"Similar issues are not present in the fast food industry and there is no reason why the regular bargaining laws should not apply, including the requirement that unions demonstrate that the majority of employees want to bargain," Willox said.
The Ai Group has reiterated its call to the government to amend supported bargaining laws to address the "unintended consequences" of the FWC's ruling.
"Regardless of the outcome of the upcoming Federal Court proceedings, Ai Group urges the Federal Government to introduce urgent amendments to the supported bargaining laws to ensure they only operate where intended, and to address the unintended consequences reflected in the FWC's decision," Willox told HRD.
