McDonald's Management Issues

Running head: MCDONALD’S MANAGEMENT ISSUES
MCDONALD’S MANAGEMENT ISSUES
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MCDONALD’S MANAGEMENT ISSUES1
Introduction:
The aim of this paper is to discuss an important entitlement in the Australian
workplace which are enjoyed by the employees of any organisation irrespective of their size
and capacities or for that matter the service area in the Australian business industries. This
entitlement is mainly related to have the proper payment according to the responsibilities of
the employees in a workplace. The employees in any workplace of Australia are empowered
with the entitlement to have correct wages or salary along with working conditions. This
paper will be discussing the background scenario of the issues taking pace in an Australian
workplace operating in the hospitality industry and how this issue relates to the entitlement
enjoyed by the employees. This paper will he also discussing the recent disputed about the
fulfilment of this entitlement and how the employees react actually.
A) Background to identify an entitlement in a workplace instrument:
Case with McDonald’s:
In this case the issue of payment can be seen in one of the largest restaurant chain of
McDonald’s which possesses international reputation for their products and customer service.
In this type of international company, the incident of unpaid work and exploitation of the
workers is not imaginable. However, the company has been accused for exploiting the
underage workers by paying them less than the expected minimum wage rate or what the
senior ones get. In this company, there are more than 100,000 workers working in all over the
branches of the country (Abc.net.au 2018). In this fast food giant, the nearly most of them are
aged between 14 and 18. Now youngest of these workers are paid 50 per cent of the
minimum wage under the Australian law. In addition to this, the company has been accused
to churn the older workers. Due to this, the older workers are getting fewer shifts (Abc.net.au
2018). This process by the company has been referred to an unspoken rule to get rid of the

MCDONALD’S MANAGEMENT ISSUES2
older employees. As the older employees are getting fewer shifts, they are not being able to
earn. This is leading company to present itself to be the largest employer of younger
population on the country and cost cutting severely. As the people from 14 to 18 years are
paid 50% less than the minimum wage rate, the company can employee two employees in an
expense of one. Similarly, the older employees if are expecting minimum wage according to
their age, are getting less shift so that the company does not have to pay higher wage
regularly.
Industrial instrument:
Fairwork.gov.au (2019), opines that the employees must get proper information about
their employment like hours of work and shift time based on which the payment will be done
by the employers. These rules are set in different places like as award, employment contract
and registered agreements. The entitlement of getting proper payment of salary or wages
from the employers is a part of employee rights. All the workers in Australia are entitled to
minimum wage based on which they get more salary when applicable but it is illegal to pay
the employees less than the minimum wage (Hradvance.com.au 2019). The employer is
needed to pay the employees at least once a month and provide pay slip within one day of
being paid. It can also be found in the code of conduct paper in the McDonald’s Australia. It
states that the company will operate according to the human rights practices of the
employees.
One term or entitlement:
The Fair Work Ombudsman Pay system help the employees to understand the minimum
rate of payment for the field of work. Under this entitlement, the employees are not to be
asked for doing unpaid work beyond what is reasonably required for demonstrating the skills