Former McDonald’s franchisee settles claim over anti-union bullying campaign for $275,000

In a national first, a McDonald’s franchisee has admitted leading an “unlawful” anti-union bullying campaign and has agreed to a landmark settlement. Read his confession.

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For the first time in Australian history a global fast food giant franchisee has admitted leading an “unlawful” anti-union campaign in his store as well as pressuring its employees to relinquish permanent employment.

Current and former workers at the Murray Bridge McDonald’s store have settled a claim bought by the SDA, which represents fast food workers, on their behalf against former franchisee Delbridge Investments Pty Ltd and will receive thousands of dollars in compensation.

The agreement between McDonald’s and the SDA came ahead of a 10 day trial in the Federal Court where it was expected numerous workers would take the stand and lay bare their working conditions.

Brayden Cranwell Jessica St Clair, iesha Taurima and Heather Hammond outside the McDonald’s at Murray Bridge. Picture: Roy VanDerVegt

The former franchisee agreed to pay $275,000 in fines and legal costs for contraventions of Fair Work Act.

As part of the settlement, a public statement was agreed upon in which the former franchisee of the store admitted creating a template form for employees to resign from the union and telling workers that they could not be promoted to manager if they were still members.

The franchisee also admitted pressuring permanent part time workers to return to casual employment. The workers said they felt their permanent hours were being threatened with unlawful cuts if they did not agree.

While not mentioned in the public statement, the SDA claim the franchisee also kept lists of union members posted on a public board and threatened to demote them.

The Murray Bridge McDonald’s store is now run by a different franchisee who was in no way involved in the previous workplace breaches.

The SDA launched action against Delbridge in April 2021. At the time the company also held franchisee licences for Rundle Mall East and Trinity Gardens and had previously run the Cross Roads store.

The claim initially joined Delbridge to a larger lawsuit which has grown to encompass hundreds of stores alleging workers have been underpaid their breaks.

However, a separate action was brought alleging anti-union activity and bullying in the workplace.

Former McDonald’s worker Iesha Taurima said senior managers had bullied her ceaselessly while working at the store, including about her membership of the SDA.

“When I became a manager, managers made it very clear the business owner didn’t like workers being in the union,” she said.

Brayden Cranwell Jessica St Clair, iesha Taurima and Heather Hammond outside the McDonald’s at Murray Bridge. Picture: Roy VanDerVegt

“A few months after I became a manager I was approached again – they said I was the only manager who’s in the union.

“Senior management pressured me to resign my union membership, but I managed to remain a member with the support of my mum.”

SDA state secretary Josh Peak said workers at the Murray Bridge store were “bullied, intimidated and threatened” when they stood up for their rights.

“It’s a disgrace that McDonald’s – one of the biggest and richest global corporations – has stores where management actively campaigns to deny workers the basic, democratic right to the protection of Union membership,” he said.

A spokeswoman for McDonald’s Australia said no allegations were made against the fast food giant itself.

“McDonald’s Australia does not accept or condone ‘anti-union’ conduct within our business or franchisee-owned restaurants,” she said.

“We have clear policies in place to ensure franchisees, managers and employees comply with the Fair Work Act, including freedom of association and right of entry requirements.”