Enterprise Agreements vs. Industry Award: Mc. Donald’s

This report discusses the relationship between enterprise agreement and industry award with Mc. Donald’s as an example. It covers the fast food industry award 2010, enterprise agreement, industry research, workplace stakeholder diversity, and more.

Running head: ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
Enterprise Agreements vs. Industry Award: Mc. Donald’s
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1ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
Introduction
The report will be written with the agenda of presenting the relationship between
enterprise agreement and industry award. The chosen company for demonstrating that is Mc.
Donald’s, largest fast food chain of the world and currently employer of more than 1 million
people. It was first opened in America as a form of restaurant owned by Richard and Maurice
McDonald. After that, it differentiated its business into franchised fast food chain. The nature
of work is to handle live food delivery and customers within scheduled time maintaining the
quality of service. Staffs are bound to serve within a stipulated time with efficiency targeting
the profitability (Fwc.gov.au, 2018). The universal feedback from the employees is not
entirely positive. The most common complaints against McJobs are that ,it is not prestigious,
long working hours, chances of future growth is zero; moreover employees are not provided
with adequate salary and benefits (Forth et al., 2013).
On the contrary, the workplace is example of efficient teamwork. Management
provides uniform and free meal for crew too. According to the decision of Fair Work
Commission as described in fast food industry award 2010, casual employees as well will be
paid for overtime. This is applied to all the casual employees including juniors, trainees and
handicapped candidates who carry out responsibilities of taking orders, delivery and sales of
foods and beverages (Waring & Lewer, 2013).
Overview of the industry award
Fast food industry award 2010 carries references of relevant awards. These are
subjects of approval as a part of the agreement, which is filed with Fair Work Commission.
There are awards for overtime for all the levels, which is 175% of the wages. In case the
employee is working on Sunday wages will be 225% more than the regular and on public
holidays 275% of wages must be provided (Fwc.gov.au, 2018).

2ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
Overview of the Enterprise Agreement
This agreement is going to be applied to the employers of McDonalds and all the
employees engaged with the company and franchised outlets around Australia. This
agreement is subjected to approve by fair work commission and expiry date is on 24th June
2017. In collaboration with The National Employment Standard, this agreement has covered
minimum conditions of employment with the approval of legislation for potential and
existing employees (Fwc.gov.au, 2018).
Industry research
The fast food industry in Australia is quite a vast one. This industry employs
more than 150,000 people all over the country (Forth et al., 2013). The fast food industry
grown is something more than 3% per year. It has always provided good job opportunities for
the unemployed people (Fwc.gov.au, 2018). The employees of the fast food industry are
generally male (Waring & Lewer, 2013). The industry always provides an easy access for
their clients. Around 20-30% of the employees of the fast food industry of Australia are
associated with the labor union. The average wage of the industry is around $10-15 for an
hour. As per the experts, the labor market in the fast food industry is quite competitive
indeed. There are several competitors in the market to give challenges to McDonalds.
As of July, 2018, the minimum wage rate in Australia has increase by 3.5% to an
amount of AUD 719.2 which can be stated to be quite above the current inflation rate. The
wage has been an all time high at this time. With the help of the unions, the plight of the
wage workers has been adhered to an over the past few years whereby the wages have
increased at a steady rate of approximately 15$ per year.

3ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
(Source: Tradingeconomics.com , 2018)
The Australian Food and Grocery industry has reflected upon the fact that there has
been considerable rise in the industry whereby the industry has reflected that there is a figure
of $127.4 bn and the given industry has added around 7500 jobs in the year 2015 to 2016
which shows that the industry has added a significant resilience. Moreover, it can be stated
that there has been a considerable high employment growth and capital investment which has
been good for the overall economy. The chosen industry employees around 320300 people
which tends to represent around 33% of Australian jobs in the specific industry. This figure
can be stated to be considerably good despite the decrease in the turnover of the industry.
Although the costs on the industry are rising, the retail deflation assists to control the margins
whereby the sector has been under pressure (Afgc.org.au ,2018). There has been a
considerable increase of 4.7 per cent which can be a turnaround with respect to the
investment and employment. These investments will be beneficial for those areas where
around 40 per cent of the jobs are located. As compared to the year 2017 from the year 2016,
the employment has increased considerably to rate of 12620700 in general whereby the
employment has decreased to 711900. Hence, this figure reflects that there has been a

4ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
considerable increase in the employment level which has been directed by substantial
investments into the sector. However, in order to ensure that these rates improve
considerable, the unions play a lead role.
The unions will look to implement some strategies that would be very important to get
the rights for the employees. The labor unions would try to tie up with the tie up with the
several communities because this will be beneficial from the end of the employees. The labor
unions would try to implement the community unionismin their society. This will surely be
helpful for the unions to push the employers of McDonalds to increase the wages. As per the
employers of McDonalds, they will stress on the employees to work sincerely and effectively.
The employers will go on to create the online forum through which they would keep
connected with all the employees. This strategy will pursue for the best interest of the
employers indeed. The labor union will focus mainly on creating the professional identity of
the workers of McDonalds and make connections through the digital unionism strategy. The
Dispute Settlement Team will take prompt actions against the violation of the employment
bargaining issues.
Industry award
There are some points or clauses that could be the most effective things in the
case of the industry awards in the fast food industry. Nankervis et al., 2016).The payments in
this industry are fairly well and this is one of the most positive points for the sustainability of
the organization as well as the industry. The hourly pay rates are quite high as well. There are
some operational problems that could be considered as much vital for the business. On
Sundays the crowd is more because of the holiday. The online deliveries are more on these
days as well. As per the industry awards, the wages of the workers of McDonalds have a
negative impact if the workers are unable to deliver the food products on time. The penalties

5ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
are imposed on the daily wages of the employees. The penalty rates are as high as 50% on the
employees. It is because this delay in the delivery on Sundays will definitely hamper the
customer satisfaction. This is why it has become quite expensive for the employees of
McDonalds to work on the Sundays. The payment in the night shift works is quite high
(Townsend, Wilkinson & Burgess, 2014). However, the employees can be sent to the lower
paid duties if they are accused of the redundancy (Cunningham, 2012). The travelling time
reimbursement is also provided to the employees as well. The transport charges are being
paid by the fast food industry organizations for the benefit of the employees. The redundancy
can cause some operational problems within the organization sometimes (Charlesworth &
Macdonald, 2015).
The relevant things in the industry award are the payment facilities for the employees
on the different occasions. The performance appraisals prove to be much beneficial for the
employees in different ways. The recruitment policies of the fast food industry are quite
impressive and there are good chances for the promotion (Charlesworth & Macdonald, 2015).
It is both the male and female employees who would benefit mostly from these industry
awards. It is because they are provided with the opportunities for the promotion, financial
benefits for working on the night shifts and on Sundays. The employment bargaining related
to the fast food industry should have a positive impact on the employees as their salaries
might get increased and they might get double payments by working on the public holidays.
However, they might get the extra leaves on the various cultural events in an alternative
manner. The employment negotiations will have to be made in terms of providing a better
workplace environment for the employees. McDonalds will surely look into these issues as
they have a high market reputation in the fast food industry. McDonalds will also have to
think of the welfare of their employees as well. If any problems arise, McDonalds employees

6ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
will consult with the labor union regarding getting of the daily wages and getting sick leaves
on time (Mishra, Boynton& Mishra, 2014).
Enterprise agreement
There are several things that would be highly beneficial for the business.
McDonalds would be able retain their best talents and will be able to meet their
organizational requirements through them as well. The company would be able to gain new
production targets and optimize them for the benefit of their higher margin of profits.
McDonalds will be able to satisfy their clients by providing the best quality of food. These
enterprise agreements will also help them to achieve their objectives and expand into various
new locations with the help of their employees. The production costs are reduced as well.
Thus the employers would be the net beneficiary (Andrew & Sofian, 2012).The shift
payments had been reduced by McDonalds due to the inflation in the last few years. The
employees have revealed that the casual employees were being made as the part-timers and
this hampered in their shift timings as well. This meant their payments had been affected
because of this as well. McDonalds have not paid much on the weekends and on public
holidays as compared to the other organizations in the fast food industry. This had been the
major concerns of some of the employees. The employees had to work on long shifts on
weekends due to the work pressure but they were not being paid well on the night shifts also.
The enterprise agreements might cause some problems due to the various clauses. The notice
of termination by an employee will have some serious implications on the business. If the
employee decides not to work on the 1 week notice period, this will surely have a negative
impact on the productivity and service delivery of the organization.
Through these enterprise agreements, the employees would be highly benefitted from
various ways. The productivity of the employees would be increased in a lot of ways (Oliver,
2016).Some problems caused because of the clauses of the enterprise agreements in the

7ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
business. The workplace diversity is encouraged largely in this context. The workplace safety
should be given the utmost importance and McDonalds should look after this issue in the best
manner as well. Thus it would be obvious that the employees would be highly benefitted in
this matter (Andrew & Sofian, 2012). It has been seen in some cases that the payments for the
employees under 16 years or age is around $328.41 and it could go up as high as $821.02 for
the employees over 21 years of age. The hourly payment rate of the employees will also rise
with age and experience. The employees under 20 years of age will get up to $19.45 whereas
the employees over 21 years of age will paid up to $21.61. There are different levels of
employees like the Level 2 and 2A, Level 3 and Level 4 employees. The payment rates of the
Level 4 employees above 21 years will be $881.69 per week and around $23.20 per hour. On
the contrary the payment rates of the employees under 16 years of age will be around $391.86
per week and $10.31 per hour. There is simply a striking difference in the hourly and weekly
payment rates that will be important for the distribution of work among the employees.
Some examples can be given in this section as to how the payment of the employees
could be affected by the enterprise agreements (Pruitt, 2013). The employees can be accused
of the redundancy sometimes. This will be considered as a punishable offence by the
management of McDonalds. In these circumstances, the company might not be able to
terminate the employees from the agreement but they will surely be able to decrease the
salaries of the employees. On the other hand, the overtime shifts can also earn them higher
amount of money through the incentives. These are the two ways the enterprise agreements
can affect the payment of the employees (Pruitt, 2013).

8ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD

9ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
Workplace stakeholder diversity
The individual flexibility provisions should reflect in the ability of the employees
within the realms of working with the employees belonging to the different cultural
backgrounds (Cuppen, 2012).The personal carers’ leave should be sanctioned in order to
show the employees that McDonalds cares for their employees. This will surely bear a
positive impact on the minds of the employees in the best ways. The trade union membership
has a special place in the undertaking of the different provisions within the workplace. If
there is any mismanagement issue within McDonalds, this should reflect in the protests by
the members of the trade union (Baldwin, Bommer&Rubin, 2012).The discriminatory

10ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
conducts of the employees and the managers should be protested in the best ways to drag the
attraction of the higher authorities. The workplace safety should be maintained properly. The
specific leaves should be approved by the managers to the employees of different religious
groups. These things would be highly important for the organization McDonalds to
implement in the best ways (Conchie, 2013).The employees would be benefitted financially
and from the aspects of their career growth. The employers, too, will be benefitted by the
expansion of the business to new areas by rapid annual growth.
Conclusion
As per the above discussion, the paper can be concluded by saying that McDonalds
will have to implement the various strategies in order to attract the attention of their
customers. However, the employee negotiations, enterprise agreements and industry awards
would be highly important as well. The company will have to provide the best facilities to
their employees to keep the workplace environment at the best place. Both the employees and
the employers would be largely benefitted by the industry awards. The stakeholder diversity
will have to be maintained in the positive ways to be the market leaders once again. The
statistics showed in the report describes that McDonalds have not been able to provide the
proper parameters for the employee welfare in the best possible ways. It will be very much
important for the company to abide by the national standards of the wage payments. This will
be highly important for the employee retention in the best ways. The employees want the
proper facilities being provided to them and in turn they will also provide the best works for
the company. McDonalds should always try to meet the enterprise agreements suitable for the
employees. The industry awards should also be given to the employees on proper time in
Queensland. As the employees have some grievances about the ways they are being treated
and they have also said that they are not being given their wages on proper time. These
problems should be resolved in order to maintain their brand reputation in the best ways.

11ENTERPRISE AGREEMENTS VS. INDUSTRY AWARD
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