Compensation is being sought for over 250,000 current and former McDonald’s workers across Australia as part of the SDA’s latest legal action against McDonald’s.
Following almost two years of investigating exploitation and Award contraventions across the fast food chain, the SDA – the Union for workers in retail, fast food and warehousing – has 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 McDonald’s sites. The SDA alleges that the denial of paid rest breaks and exploitation was systematic and deliberate, and that McDonald’s Australia aided and abetted franchisees in this practice.
“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,” said SDA Secretary Gerard Dwyer.
Other Federal Court claims
Under the Fast Food Award, all McDonald’s workers are entitled to an uninterrupted 10-minute break when working for four hours or more. The SDA is alleging that not only were McDonald’s workers not informed of their rest break entitlements, they were also told breaks could be exchanged for a free soft drink or going to the toilet.
The SDA is seeking thousands of dollars in compensation for workers who did not receive their legal break entitlements and asking the Court to award penalties against the 400 employers who have operated McDonald’s sites in the past six years. As a conservative estimate, the SDA is seeking $250 million plus penalties.
This new claim is one of the biggest of its kind in Australian history, capturing over 1.8 per cent of working Australians. It is also in conjunction with the SDA’s 15 existing Federal Court claims against McDonald’s Australia and 14 franchisees, which span 196 sites.
