McDonald’s staff underpaid at least $50m a year, investigation finds

AN INVESTIGATION into McDonald’s has found the fast food giant cut a deal that left staff seriously out of pocket.

McDonald’s has been forced to answer questions about underpaying its Australian staff.

AN investigation into Australia’s second largest employer — McDonald’s — has found the fast food giant cut a deal that left staff seriously out of pocket.

The deal between Macca’s and the Shop, Distributive and Allied Employees Association (SDA), signed in 2013, affects young workers who earn as little as $10.08 an hour. Collectively, Australian staff are worse off by $50 million a year.

The findings of a Fairfax Media investigation were based on pay slips and store rosters.

The SDA has more than 28,000 members and claims it has “looked after the rights of retail workers for more than 120 years”.

“Throughout the years, the SDA has won historic improvements for members,” the union’s website reads.

“With such an emphasis on the rights of its members, it’s no wonder the SDA continues to grow and prosper today.”

The deal was brokered on the basis that workers received slightly higher hourly wages than the award, but it did cover penalties. According to the agreement, it contains no weekend penalty rates and only pays staff who work from 1am to 5am 10 per cent extra.

McDonald’s has not yet issued an official statement but did say it was “wrong” to suggest McDonald’s was underpaying its staff.

“We are a 24-hour, seven-day-a-week business and our employees tell us they love the flexible working hours we provide,” spokesman Chris Grant said.

Fairfax claims a 19-year-old part-time worker in South Australia is more than $5700 worse off under the deal signed between McDonald’s and Labor’s largest union affiliate.

McDonald’s staff have been underpaid by as much as $50m a year, according to an investigation.

An 18-year-old casual staff member is almost $2500 worse off each year.

SDA national secretary Gerard Dwyer told Fairfax McDonald’s were among the best paid fast food workers in the world “in the vast majority of cases”.

Business Insider declared earlier this month that McDonald’s is “thriving” in Australia.

McDonald’s CEO Steve Easterbrook said the Australian brand was an international leader.

“Australia is in the early stages of turning around its business through a multifaceted approach to enhance brand appeal for consumers,” Mr Easterbrook said.

“This includes meaningful enhancements to our menu, including both core and new menu items across several categories, value platforms and better restaurant operations.”

McDonald’s outlets in Australia sold more than $4 billion worth of burgers and fries in 2015. Fairfax reported the company made $1 billion profit.

McDonald’s provided the following statement to news.com.au:

“McDonald’s Australia has always provided the best pay and conditions in our industry for our people.

“We are a 24 hour, seven day a week business and our employees tell us they love the flexible working hours we provide and they prefer a higher rate of pay across the week over penalty rates that only apply to limited times. Our current Enterprise Agreement delivers this.

“Our agreement provides a range of additional benefits that go above and beyond the Fast Food Award, including additional leave entitlements and guaranteed annual pay increases. Any inference that we “under-pay” our people by having an Enterprise Agreement is simply wrong.

“Enterprise Agreements are subject to the scrutiny of the Fair Work Commission who will only approve an Agreement if each of the employees covered are better off overall compared to the relevant standard. Our Agreement passed this test and that is why it was approved and implemented.

“McDonald’s is open and transparent about our wage structure and working conditions; our Enterprise Agreement is freely available to everyone.”