McDonald’s franchises lose ‘David and Goliath’ fight against collective bargaining move

Maccas workers across South Australia have scored a huge win over their major employer in the Fair Work Commission (FWC).

The FWC has granted a huge win for unions, allowing thousands of workers across South Australian McDonald’s franchises to now bargain together to improve their pay and conditions – which was heavily disputed by the global fast-food giant.

The ruling gives the Shop, Distributive and Allied Employees Association (SDA) the go-ahead to bargain on behalf of more than 5,100 workers operating across 18 SA McDonald’s franchises.

“This is a landmark win for low-paid fast food workers in Australia,” said SDA South Australia secretary Josh Peak.

“The fast-food industry has the highest proportion of award-reliant workers in the country, these workers deserve to be covered by enterprise agreements.

“For the first time in six years, this will give Maccas workers the power to have a say on their wages and workplace entitlements.”

According to the Australian Council of Trade Unions (ACTU), McDonald’s is the first employer to contest a supported bargaining bid under strengthened laws implemented by the Albanese government.

In its decision, the FWC presented a plethora of reasons in favour of the supported bargaining approval – claiming that had the “SA licensees identified any alternative path, other than through supported bargaining, by which enterprise bargaining might proceed on a consensual basis, these matters may have been assigned greater and perhaps decisive weight”.

The commission found that it was appropriate for the South Australian licensees and their employees to be covered by the multi-enterprise agreement proposed by the SDA due to:

• “The prevailing pay and conditions within the fast-food industry are at or close to the minima provided for by the FFI Award, and low rates of pay prevail in the industry.”

• “The SA licensees have clearly identifiable common interests of direct relevance to enterprise bargaining.”

• “Unless the authorisation sought is granted, the SA licensees will not engage in bargaining, and as a result, their employees will not have access to bargaining.”

On top of these reasons, the commission noted that “a significant proportion of the employees support engagement in bargaining”.

“This has been a real David and Goliath struggle where Aussie values of a fair go have won out over multinational corporate America’s refusal to give workers the right to bargain together,” said ACTU president Michele O’Neil.

“McDonald’s and its franchises are the largest employers in the country that have been refusing to negotiate directly with their workers.

“Now they will have to, because their arguments that franchise owners don’t share common interests have failed to stack up in the Fair Work Commission.

“The Maccas ruling means more workers and their unions will be able to negotiate collective agreements that will deliver better wages and conditions.”

Peak said: “This decision sends a clear message: corporate America can no longer deny their low-paid Australian workers the right to bargain.”

Moving forward, the SDA will be seeking to lock in above-award wage increases and higher rates of pay for 18-year-olds and up, as well as predictable hours.