How McDonald's Australia makes its millions

 

On 27 April 2010 The Australian reported:

 

THE local arm of fast-food giant McDonald's doubled its profit last year to $364 million, despite reporting modest sales growth.

McDonald's Australia, which oversees almost 800 franchised restaurants around the country, reported a 6 per cent rise in sales revenue to $898m during the 12 months to December 31, on the strength of restaurant refurbishments and introduction of a premium range of products and healthier menu choices.

Overall revenue for the group rose 40 per cent to $1.7 billion, bolstered by a $308m payment for the sale of intellectual property rights to a related entity, McDonald's Asia Pacific.

This is how McDonald's Australia achieves those profits........

From Smart Company on 28 April 2010:

 

Fast-food giant McDonald's has been referred to the Fair Work Ombudsman for allegedly underpaying some of its workers, after the industrial relations commissioner has thrown out an agreement which would cover the company's 80,000 employees.

Commissioner Donna McKenna rejected a deal between the company and the Shop Distributive and Allied Employees Association, saying it fails a no-disadvantage test. The deal would have seen standardised conditions imposed in all states and territories, including rules for rostering, penalty rates and entitlements.

The no-disadvantage test states that employers may remove certain entitlements from work agreements but these must be offset by other benefits.

While McKenna wrote in her ruling that the agreement, which is 111 pages long, contains both advantages and disadvantages, it ultimately poses no net benefit for employees. She also suggested workers could have been underpaid, referring the matter to the Ombudsman.

"I have concluded the agreement would represent an emphatic diminution in overall terms and conditions for the employees who would be subject to its proposed operation," she wrote in the judgement.

"The Agreement not only fails to satisfy the no disadvantage test, on various levels it significantly compromises industrial standards that would be expected for agreement-reliant employees – considering, in particular, that these employees are mostly young and mostly casually employed."

Specifically, the judgement referred to situations that would have seen employees in New South Wales, Victoria and Queensland receive pay rises below minimum pay deals over the three-year period of the proposed agreement.

From News Ltd's Business Smarts on the same day:

This year, McDonald's employees would have received the national minimum wage rise, less between $3.84 and $7.50 a week, depending on their state. McDonald's argued this was to offset other benefits.

From July 2011 and July 2012, the increases would be the minimum wage adjustment plus either $2 or $5, depending on the state.....

employees could be asked to work unlimited shifts without a break.