Fair Work Commission rules in favour of 5000 Macca’s workers for better pay

The ruling will apply to 5000 McDonald’s workers across South Australia.

SDA Secretary Josh Peak speaks at McDonald’s on Hindley St. Picture: Kelly Barnes

Thousands of low-paid McDonald’s workers in South Australia have won the right to negotiate together for better pay in a landmark ruling by the Fair Work Commission.

This week, the SDA – the state’s largest union – won its bid, requiring McDonald’s franchises in SA to negotiate with their workforce and the union.

Secretary of the SDA, Josh Peak, said people who worked in the fast-food industry were low-paid and deserved the right to have their say.

“This is a landmark win for low-paid fast food workers in Australia,” he said.

“The fast-food industry has the highest proportion of award-reliant workers in the country, these workers deserve to be covered by Enterprise Agreements.

“For the first time in six years, this will give Macca’s workers the power to have a say on their wages and workplace entitlements.”

The decision will impact over 5000 workers across 18 employers, operating 53 McDonald’s restaurants in SA.

The SDA said McDonald’s was the largest fast-food chain in the country, and since 2020, it had only provided employees with the minimum pay and entitlements required in the fast-food sector.

Mr Peak said the major ruling was about bringing the largest and most profitable fast-food chain in the world back to the negotiating table, requiring them to give their workforce a say.

“This decision sends a clear message: Corporate America can no longer deny their low-paid Australian workers the right to bargain,” he said.

“This ruling confirms something that was always obvious – that McDonald’s stores share common interests and workers should be able to bargain together.”

5000 McDonald’s workers in South Australia have won the right to bargain together for an enterprise agreement. Picture: AFP

The SDA said they were able to achieve the outcome after the Albanese government introduced Supported Bargaining laws in 2023, designed to help low-paid workers access bargaining.

McDonald’s was the first employer to fight back against the laws – contesting that their franchises don’t share common interests.

At the bargaining table, the SDA said they would be seeking to lock in above-award wage increases, higher rates of pay at 18 years old and predictable hours among other improvements.

McDonald’s employee of eight years, Connor Boyle told the Advertiser that he gets paid around $30 per hour on a casual basis, and welcomed the news of a potential wage rise.

“I’m quite happy with it, it’s really exciting to know that the voices of McDonald’s workers will be taken seriously,” he said.

“I love working at Maccas, it’s a lot of fun, it’s high pressure, quite fast-paced and a lot of good teamwork.

McDonald’s casual employee, Connor Boyle.

“I get paid around $30 an hour as a casual, and it might sound like a lot, but when you realise that I could be getting paid more for the same work elsewhere, it gives you perspective.”

CEO of the Australia Industry Group, Innes Willox said he was “deeply disappointed” by the ruling of the Fair Work Commission, as the decision could have a widespread impact on thousands of employers and small businesses.

“The decision highlights the risk for thousands of employers in the fast food, retail, hospitality and many other sectors, of being dragged into multi-employer bargaining by unions against their will and without the support of the majority of their employees,” he said.

“This includes many small businesses that are struggling to survive in the current difficult trading environment.

“The union-friendly supported bargaining stream was intended to operate in sectors where the employers and employees need a lot of support to bargain, typically because of the government-funded nature of those sectors.”

Mr Willox said the ruling was the first time a supported bargaining authorisation had been issued outside of a government-funded sector, and that the decision needed to be reconsidered.

A spokesperson for McDonald’s Australia said the company would take time to review and consider its next steps.

Originally published as Fair Work Commission rules in favour of 5000 Macca’s workers for better pay