Fast-food union estimates 2300 past and present Top End McDonald’s employees eligible in court claim

Thousands of past and present Top End McDonald’s employees may be eligible to receive compensation for allegedly being ‘denied’ 10-minute rest breaks over a five-year period.

THE union representing McDonald’s workers has estimated more than 2000 past and present Territory employees could be eligible to seek compensation in a national $250m court claim.

The claim, launched by fast-food union the Shop, Distributive and Allied Employees Association (SDA), alleges past and present employees of Top End franchisees VIGR Holdings Pty Ltd and Trophi Restaurants Pty Limited were “deliberately” denied their entitled 10-minute rest breaks from 2017 to May 2022.

Thousands of past and present workers could be eligible for the claim. Picture: Glenn Campbell.

VIGR Holdings Pty Ltd operates McDonald’s sites in Casuarina, Coolalinga, Johnston, Katherine, Ludmilla and Palmerston, while Trophi Restaurants Pty Ltd operates stores in the Darwin CBD and Stuart Park.

All eight sites are involved in the claim.

According to the SDA, there are 2300 potential past and present VIGR Holdings and Trophi Restaurants claimants eligible, with 61 witnesses that have provided statements that support the claim, which was first launched in March this year.

The NT franchisees are two out of 323 McDonald’s operators around the country involved in the federal court claim.

SDA SA/NT secretary Josh Peak said the 2300 employees across the Territory were allegedly owed thousands in compensation by McDonald’s.

“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,” Mr Peak said.

The SDA is seeking $250m in compensation for past and present Maccas employees. Picture: Glenn Campbell

“These Federal Court claims are not just about compensation and penalising McDonald’s, it’s about sending a clear message that this systematic exploitation of young Territorians will not be tolerated.”

The SDA is seeking $250m in compensation, plus penalties.

The claim comes as Australians are being forced to tighten their belts amid rising cost of living expenses, with one family declaring it’s actually cheaper to buy Maccas than shop at some supermarkets.

McDonald’s Australia said the fast-food giant intended to “fully defend” the compensation claim.

“McDonald’s strongly denies it has ever engaged in any practice amounting to ‘wage theft’,” a statement from the fast food giant said.

“McDonald’s restaurants have always complied with applicable instruments, provided rest breaks to employees and were consistent with historic working arrangements.”

Under the Fast Food Award, all McDonald’s workers are entitled to an uninterrupted 10-minute break when working four hours or more.

The SDA alleges the denial of paid rest breaks and “exploitation” was “systematic” and “deliberate” and that McDonald’s Australia “aided and abetted franchisees in this practice”.