Fast-food giants trying to avoid paying teens weekend penalties.   

Date
    August 15, 2012



Clay Lucas


Among the more significant submissions is a push by Hungry Jack's, McDonald's and other big chains to remove the requirement to pay compulsory weekend penalty rates.

AUSTRALIA'S fast-food chains are trying to wriggle out of changes to national wage laws that will soon force them to pay employees penalty rates on weekends.   

The move comes as an independent senator attempts to introduce laws that would remove double-time weekend wages, which, he says, are crippling small businesses.

Fast-food outlets, restaurants, retailers and unions have this week filed submissions to a major review of the nation's awards system by Fair Work Australia.

Among the more significant submissions is a push by Hungry Jack's, McDonald's, Red Rooster, Pizza Hut, KFC and other big chains - which together represent 47 per cent of the industry - to remove the requirement to pay compulsory weekend penalty rates.   


The fast-food companies' submission, made on their behalf by the Australian Industry Group, asks the workplace umpire to do away with weekend penalties altogether. Big fast-food outlets such as McDonald's have enterprise agreements, covering thousands of staff, which until now have not awarded penalty rates to most employees.

McDonald's current agreement, which expires in 2013, covers 80,000 employees - about a quarter of them young people. If nothing is changed, from next year it would be forced to pay these workers 25 per cent extra on Saturdays and 50 per cent more on Sundays.

McDonald's human resources director Joanne Taylor has told Fair Work Australia the chain could not enter into a new agreement with staff under the new award, because of the ''substantially higher costs''. Pizza Hut franchisees have also said they could not afford the penalties.

Under the plan put forward by fast-food retailers, workers at all fast-food outlets would get 10 per cent extra if they worked after 10 on any night of the week and 15 per cent extra after midnight.

All obligations to pay extra on weekends from next year would be removed. Penalties in the fast-food industry for most major employers were imposed for the first time in 2010, when the current award came into place.

The national secretary of the Shop Distributive and Allied Employees Association, Joe de Bruyn, said the fast-food chains were trying to wriggle out of new conditions they had known were coming since 2008. 

The push is part of a wider move by employers to remove penalty rates, particularly across the retail and hospitality sectors. ACTU president Ged Kearney said yesterday that unions would fight hard on the issue.   

Meanwhile, independent senator Nick Xenophon is attempting to change workplace laws over double-time weekend wages, which, he says, are costing young people their jobs.

Senator Xenophon's proposed amendment would see penalty rates still payable, but only where an employee worked more than 38 hours in seven days, or more than 10 hours in a day. The changes would only apply to small businesses employing fewer than 20 full-time staff.


Read more: http://www.theage.com.au/national/fastfood-giants-trying-to-avoid-paying-teens-weekend-penalties-20120814-246t6.html#ixzz23YY9ikaZ