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

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