McDonald’s accused of cutting staff hours

David Marin-Guzman

Jan 14, 2020

AFR

McDonald’s has been accused of issuing new contracts to thousands of part-time workers that cut their minimum hours, as it prepares for penalty rate increases and new roster restrictions next month.

Franchisees at the fast-food giant have requested some 20,000 part-time workers sign the new contracts over the past few weeks, but unions say most of the contracts reduce minimum rostering requirements from 10 hours a week to three to four hours – the equivalent of just one shift.

The contracts come as McDonald’s is set to transition to the fast-food industry award on February 3 after ending decades of enterprise agreements with the Shop Distributive and Allied Employees Association (SDA), which traded penalty rates for higher base rates.

The move will see 109,000 workers paid full penalty rates for the first time, and will give part-timers set rosters rather than flexible but “reasonably predictable” rosters with a minimum 10 hours a week.

Retail and Fast Food Workers Union secretary Josh Cullinan said the “vast majority” of the new contracts were designed to “obliterate” current minimum hours and urged members not to sign them.

“For those with a 10-hour minimum contract, 15-hour minimum contract, or 20 hours … if you sign a minimum contract with a 3 to 4 hour shift you are recontracting with McDonald’s for just those hours,” he said in a message to members.

“They might promise all the extra hours in the world … don’t believe it. The reality is you will be cutting yourself off.”

Mr Cullinan also urged part-timers to insist on keeping weekend shifts because of the upcoming increase in penalty rates, which he estimated would cost the company as much as $150 million extra a year.

McDonald’s has warned there will be fewer enterprise agreements unless changes are made to the Fair Work Act’s better off overall test.

The Fair Work Commission decided to terminate McDonald’s expired EA last month off the back of an application by RAFFWU member Xzavier Kelly.

McDonald’s eventually agreed to termination after it ditched its new agreement with the SDA due to obstacles to its approval.

SDA national secretary Gerard Dwyer said the threat of reduced minimum hours was “precisely why” the union had tried to negotiate a new agreement and not return to the award.

“The SDA always feared that a return to the award would result in less security for permanent workers – fewer hours and less pay,” he said.

“The SDA believes McDonald’s needs to honour the existing part-time contracts as workers move from the EA to the award and not reduce the hours, pay and entitlements of its workers.”

‘Fixed hours’ push

McDonald’s corporate relations director James Rickards said the franchisor had recommended to store managers that part-time employees be offered “fixed hours that are equal to, or similar to, their current minimum part-time hours”.

“All new part-time contracts must be mutually agreed between individual employees and the restaurant,” he said.

He noted the award “does not provide the previous workplace flexibility valued by our employees under the EA”.

“Part-time employees who do not want to move to fixed shifts have the option to discuss moving to casual employment conditions instead.”

Part-timers are entitled to overtime for additional hours worked, as long as the hours are not an agreed variation to a set roster.

“We remain committed to engaging openly and transparently with our people throughout the transition to ensure any potential concerns are addressed,” Mr Rickards said.

A Business Council spokesman said the new roster restrictions showed how the decline of enterprise bargaining benefited neither workers or employers.

“This includes tens of thousands of part-time employees who will no longer be able to work the same shift rosters that they had themselves chosen to work under the terms of the EBA, as the more restrictive award will not allow for it,” he said.

“This outcome benefits no one and is a further example of the urgent need to fix Australia’s enterprise bargaining system.”