A recent decision of the Fair Work Commission (FWC) to authorise supported bargaining on behalf of staff working for McDonald’s franchisees in South Australia has alarmed retail groups.
The soon-to-be merged Australian Retailers Association (ARA) and National Retail Association (NRA) say the ruling marks the first time such an authorisation has been granted in the retail and quick service restaurant industry. The bodies worry about the potential impact on all small businesses, not just retailers.
“This decision raises serious questions about the threshold for supported bargaining and whether the stream is being applied more broadly than Parliament intended,” said ARA CEO Chris Rodwell.
“Small business operators in fast food and retail are already facing significant cost pressures and economic uncertainty. This decision heightens the prospect of those struggling businesses being drawn into multi-employer negotiations without a majority of employee support is deeply concerning.”
By issuing a Supported Bargaining Authorisation covering the McDonald’s franchisees, the FWC has – in the view of business groups – significantly expanded the reach of the supported bargaining stream. They say it confirms the longstanding concerns raised by employers about the scope and potential overreach of recent changes to Australia’s industrial relations framework.
“The supported bargaining stream was intended to assist sectors with clear barriers to bargaining, such as disability care or early childhood education, where there is a clear need for coordinated negotiation, for example, due to the structure of government funding and sector-wide regulation,” the ARA and NRA said in a joint statement.
“That intent does not apply to the quick service restaurant industry, where hundreds of enterprise agreements have been negotiated under the ordinary provisions of the Fair Work Act.”
The retail bodies have called on the Federal Government to “closely review” the implications of the FWC decision and consider amendments to the Fair Work Act to “restore clarity” around when supported bargaining can be used.
“Franchisees and other small employers need certainty that the bargaining system will remain focused on genuine enterprise-level negotiation, not union-driven coordination across unrelated employers,” Rodwell said.
This article was first published on sibling website Inside Small Business.
