Management Employees Relation

Running head: MANAGEMENT EMPLOYEES RELATION
Management Employees Relation
Name of the Student
Name of the University
Author’s Note

1MANAGEMENT EMPLOYEES RELATION
Table of Contents
Introduction......................................................................................................................................2
Industry Research............................................................................................................................4
Industry award.................................................................................................................................6
Enterprise Agreement......................................................................................................................8
Workplace and stakeholder diversity.............................................................................................10
Discussion and conclusion.............................................................................................................11
References......................................................................................................................................13

2MANAGEMENT EMPLOYEES RELATION
Introduction
The purpose of this study intends to compare on the business working of Australia’s
McDonald’s under the enterprise agreement and the relevant fast food industry award.
McDonald is one of the leading American fast food enterprise that is owned by Richard and
Maurice McDonald and headquartered in US. It rechristened its business operations as
hamburger stand and later identified as premier franchising enterprise. This company has near
around 35,000 restaurants in more than 100 nations. More than 90% of its restaurants worldwide
are mainly owned as well as operated by their independent franchises. Under franchising, this
company has license and conventional under franchise agreement. Under the conventional
franchise agreement, this enterprise offers capital for location that it then owns. Moreover, each
franchise gives certain portion of capital for equipment, signs. Seating and reinvestments in
business. Under license agreement, licensees give capital for location. It employs around four
million employees in their business and serves around 70 million consumers each day. It has
been ranked as the globe’s restaurant chain in terms of revenue that mainly generates from fees
paid by franchise, rent, royalties and sales in organizations operated restaurants (Oliver & Yu,
2018). This enterprise has been the leader in area of corporate social responsibility and is
committed to protect environment for the future generations. McDonalds is reliant upon its
workers for production of foods and quality of customer service (McDonald's, 2018). The
restaurant employees are the biggest group in enterprise’s employment structure. The restaurant
workforce consists of transitional workers, teenagers and students. The part-time and entry level
workforce of this enterprise are paid low wages with respect to other employees. The top
employees of this company attain bonuses based on mystery shopper scores. McDonalds assure
recognition and reward for its workforce in order to motivate them in work. The sector award

3MANAGEMENT EMPLOYEES RELATION
covers the employers throughout Australia in fast food sector. The award do not cover
employees those are covered by modern enterprise award or by the State reference public
industry transitional award. Moreover, this award mainly covers an employer that supplies
workers on hire basis in sector set out in clause. This award covers those employers that gives
group training services for individuals engaged in fast food industry. McDonalds has made
negotiation with SDA relating to proposed variations that is made under the enterprise agreement
2013. These proposed variations mainly relates to inclusion of classification of allowances, home
delivery driver and updating consultation term (Bray & Stewart, 2013).
Enterprise agreement and awards has comprised long- lasting system of the industrial
relations. Awards are the kind of employment contract that outlines basic terms and conditions
relating to specific jobs in an enterprise. The fast food industry set the award rates and the
workers across the industry receives basic wage rise over time. Bray and Stewart (2013) opines
that awards basically tends to assure that workers performing similar work must receive
minimum pay level. The employers in this industry offer above-award conditions for attracting
and retaining employees. On the other hand, the fair work act permits the employees as well as
employers to make enterprise agreement that might displace terms of awards. In enterprise
agreement, the employers have the possibility to reorganize different leave, work hours and pay
so long the agreement passes BOOT (Better Off Overall Test). Thus, the workers have to be
better-off rather than they might be under award. For example, the Australian employees with
university or vocational qualifications who are employed on awards have been reported higher
wage above the premium qualification attained by employees on enterprise arrangements.
However, it is necessary for the enterprises negotiated agreement in this industry for attracting