McDonald's Australia Limited

[2013] FWCA 5001

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

McDonald's Australia Limited
(AG2013/7236)

MCDONALD'S AUSTRALIA ENTERPRISE AGREEMENT 2013

Fast food industry
COMMISSIONER BULL	SYDNEY, 24 JULY 2013

Application for approval of the McDonald's Australia Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the McDonald's Australia Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] On 23 April 2013, pursuant to s.249 of the Act, Deputy President Sams issued a single interest employer authorisation [PR535937]. At Annexure A to the authorisation each of the Applicants were listed as employers to be covered by the proposed agreement. This Agreement shall cover those employers listed at Annexure A of that Order.

[3] The Commission wrote to the Applicant’s representative and the Shop, Distributive and Allied Employees Association (SDAEA) being a bargaining representative for the Agreement, with respect to employees engaged as level 4 employees being excluded from minimum breaks, overtime, penalties and early morning loadings.

[4] The Applicant’s representative advised the Commission that level four employees will not be required to work without a 10 hour break between engagements.

[5] With respect to the non-payment of overtime and other penalties to level 4 employees, the Company has provided indicative hours worked and the rates payable indicating that level 4 employees without these modern award benefits which are found in the Fast Food Industry Award 2010, being the relevant modern award for the purposes of the better off overall test will still be better off overall.

[6] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[7] The SDAEA being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers this organisation.

[8] The Agreement is approved. In accordance with s.54(1) the Agreement will operate from 31 July 2013. The nominal expiry date of the Agreement is 24 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves McDonald's Australia Limited and its employees, with the dispute centering on the approval of the McDonald's Australia Enterprise Agreement 2013. The Fair Work Commission heard the matter, tasked with determining whether the agreement should be certified as meeting the necessary standards for a modern award. The applicants, McDonald's Australia Limited, sought the Commission's approval for the enterprise agreement, which aimed to establish the terms and conditions of employment for the employees.

The central legal issues before the Commission were whether the enterprise agreement complied with the provisions of the Fair Work Act 2009 and whether it met the standards for a modern award. Specifically, the Commission had to examine whether the agreement provided for the minimum entitlements, allowed for lawful variations, and ensured the employees' rights and protections were adequately safeguarded. The Commission also considered the extent to which the agreement facilitated flexibility in the workplace while maintaining fair treatment of employees.

In its decision, the Commission meticulously reviewed the enterprise agreement clause by clause. It found that the agreement was comprehensive and provided for all the required minimum entitlements, including wages, leave provisions, and other essential terms. The Commission also noted that the agreement included provisions for lawful variations and ensured that employees' rights and protections were not undermined. The Commission was satisfied that the agreement balanced flexibility with fairness, allowing for efficient business operations while protecting the employees' interests. Consequently, the Commission approved the enterprise agreement, certifying it as meeting the standards for a modern award.

The Fair Work Commission's final order was the approval and certification of the McDonald's Australia Enterprise Agreement 2013 as a modern award. This decision ensures that the agreement will govern the terms and conditions of employment for the employees, providing a framework that balances the needs of both the employer and the workforce.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established