McDonald’s has been hit by a mammoth wage theft case over allegations that more than 250,000 current and former workers were denied breaks.
The Store, Distributor and Allied Workers Association (SDA) announced Friday that it had filed a “mega” federal lawsuit against 328 McDonald’s operators and the fast-food giant itself over alleged denials of paid breaks near 1,000 current and old restaurants.
The union, which has about 15 existing federal lawsuits against McDonald’s and its franchisees, said it was seeking $250 million in damages plus penalties in one of the largest wage theft claims of its kind in the history of the country, capturing more than 1.8 percent of working Australians.
Under the Fast Food award, all McDonald’s workers are entitled to an uninterrupted 10-minute break when they work four hours or more. The SDA alleges that not only were employees not informed of their break rights, they were also told that breaks could be exchanged for a free soda or to go to the restroom.
The union alleges that the conduct was systematic and deliberate and that McDonald’s Australia aided and abetted franchisees in the practice.
“The SDA has attempted to resolve this issue with McDonald’s and they have refused to resolve it, let alone admit any wrongdoing,” SDA Secretary Gerard Dwyer said in a statement.
“As one of Australia’s leading employers of young people, McDonald’s should not be dragged through the Federal Court for workers to receive their most basic rights.
“In their restaurants, McDonald’s demands consistency. They make sure that every restaurant can put two beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun. It’s just not believable that these breaks have not refused on purpose.
“Just because McDonald’s is a multi-billion dollar fast food corporation doesn’t mean they can pick and choose which laws to follow. McDonald’s has the ability and the responsibility to make sure they give workers all their rights.
“These federal court claims are not only about compensating and penalizing McDonald’s, but about sending a clear message that this systematic exploitation of young workers will not be tolerated. We will not stop reporting these exploitative behaviors until McDonald’s cleans up its act and compensate the workers”.
The SDA is seeking thousands of dollars in compensation for workers who did not receive their statutory rest rights and is asking the court to sanction 400 employers who have operated McDonald’s locations in the past six years.
The union says the $250 million figure is a “conservative estimate.”
McDonald’s has more than 970 restaurants in Australia and employs more than 100,000 people.
The SDA’s existing federal court actions are against McDonald’s Australia and 14 franchisees, covering 196 locations.
According to the union, more than 10,000 workers have cooperated in its investigations into working conditions at McDonald’s.
In a statement, a spokeswoman for McDonald’s Australia said the company “intends to fully defend the claim”.
“McDonald’s believes that its restaurants complied with the applicable instruments, provided breaks to employees and were consistent with historical labor agreements,” he said.
“These agreements have been known to the SDA for many years. The manner in which the breaks are taken has not been questioned or raised by the SDA as a cause for concern throughout successive business negotiation processes for new industrial agreements.
“We are very aware of our obligations under applicable labor laws, including the old enterprise agreement and the Fast Food Industry Award, and we continue to work closely with our restaurants to ensure that employees receive all rights and the right pay in the workplace.
“We greatly value our employees and the great contribution they make to the success of the business.”
frank.chung@news.com.au