Industrial Instrument - McDonalds - Case Study Example

A Report on Industrial Instrument Name Tutor Institution Course Date A Report on Industrial Instrument Background Since the establishment of the labour Act 2009, new systems and laws were available to enable the operation that governs most Australian workplaces. The government provided a set of safety net for all employees covered by the national workplace relations system. An industrial instrument is an award that has legal application with respect with the minimum entitlements accorded to those employees covered within its scope (Eberstadt, 2012, 12). McDonald is a franchise business specialist in fast foods with branches in 19 states. It is a workplace offering numerous opportunities to anyone interested in earning an extra income from dads, moms to students because of its flexible shifts. The restaurant operates on a 24/7 economy, serves many customers forcing its employers to work beyond the normal working hours. Moreover, during high season such as Christmas holiday, the company remains open targeting the high population caused by tourists thus earn millions of money. McDonald’s advertisers job opportunities based on volunteer in order to bring many staff on board but manage a low wage budget. This is a report reviewing overtime-industrial instrument as well as comparing it over with other entitlements in the workplace under the National Employment Standards (NES) as well as views of employees and media report. Comparison between overtime payment and other instruments The Trade Media (2004, 101) illustrates that an overtime entitlement just like any other industrial instrument is found in the employee’s written statement or work contract and agreed upon before an employee starts work. An employee who works hours on a holiday or after the usual shift is stands to benefit from the overtime penalty rates. The National Employment Standards (NES) prescribes the maximum weekly hours that a full-time employee is suppose to work is 38 hours plus reasonable additional hours. The Australian Fair Pay and Condition Standards is instrumental in implementing statutory entitlements for minimum wages, sick off pay and other industrial instruments introduced as part of the Howard Government’s Work- Choice in the workplace relations amendments (Forester & Griffiths, 2010,118). However, part time workers receive protection as stipulated in the Protection of Employee, Act 2001 that ensures they receive treatment in a manner similar to full-time employee with the exception of any hour threshold. There are several entitlements provided by the National Employment Standard (NES) that apply to all employees covered by the national workplace relations system, regardless of the industrial instrument or contract of employment. Statutory Sick Pay (SSP) is one of industrial instrument at McDonald where employees are entitled if they fall sick for four or more days in a row including on weekends and holiday. According to Bartelt (2010, 204) workers receive a certain percentage of their basic rate depending on the days absent also known as “qualifying days”. There is no minimum period over the Statutory Sick Pay (SSP) entitlement but just like the overtime industrial instrument some employee never receive their compensation. The entitlement to paid sick off is available in the Industrial Relations Act 1999 (the Act). Application of the overtime entitlement and views of employees The overtime entitlement is amid essential elements included in the modern award, under the Fair Work Act. The industrial instrument is applicable in cases where the employees are forces to work more than their normal work hours such as beyond the time during which the award requires the ordinary hours of service each day. The employers is always the one in charge of such entitlement that is supposed to be discussed in detailed and agreed upon by the employee before concerning duty. Beside its inclusion in the Fair Work Act, no employee is entitled to the payment unless the boss authorizes it (McMillan, 1999, 46). However, casual employees who work outside the span of usual working hours stand to benefit as illustrated by the particular industrial instrument. Overtime payment in most cases bases on negotiation between the employer and employee. An employee who legitimately works extra hour is entitled to an appropriate pay and an employer is banned from taking the position that the overtime pay was not authorized. According to Forester & Griffiths (2010, 36) private companies have put policies in place to protect themselves against employee accusations because at all time, such firms exist to make money. During the tenure when Ronald Beaver was the vice president of McDonald US, a crew- member sued the company over pending payment during the previous summer holiday and Mr. Beaver while defending the restaurant in court said none of the staff has guaranteed employment right. Such allegations are common with McDonald as occasions of employee complaining are the order of the day. One the eve of the new day, one of my colleague and I were asked to stay back and work for the night shift by the Shift Manager, Mr. Michael because only a few staff turn-up for their shift and since then we are yet to receive our payment. Anytime the company offers bonuses is most likely those taking up the extra hours will never receive payment for overtime service. Views of McDonald’s Employees Despite McDonald’s vast revenues and multi-billion dollar annual profit, the company has been in the line light for bad reasons with employee complaints. Lopez, Zarate and I attached to McDonald Australia in different departments with varied shift hours. The work schedule at the restaurant is not well structured as workers are forced to work concurring shift and on holidays when sales are high. Lopez Genoveva is a fast-food restaurant who has been employed since 2003 and ever since her salary rate remains at 8.55 Euro per hours. Miss Lopez just like any other worker at McDonald she has been forced to work off the clock, placing her rest and meal breaks at the end of the shift and she has not received the overtime payment. She is aware of her right to the pay although efforts to voice her complain are in vain. Zarate, a senior operation manager at McDonald acknowledges alleges of the company’s illegal labor practices. Overtime entitlements are among benefits workers at the restaurant opt to gain, although it does not happen in all instances because of the huge numbers of employees and the business main mission is to make profit with little care about the employers. Zarate as the boss at the department receive orders from the senior managements that mostly go unquestioned, for example in a recent meeting, Zarate and other managers were instructed to reduce, “labor costs by requiring its restaurants to limit labor costs to a specific percentage of gross sales, causing them to violate state labor laws to keep costs in line.” The relevant of the overtime payment at McDonald is not viable as there is a tendency to erase certain employees’ actual work hours and prohibits meal breaks, withholding overtime pay. Am employed as a crewmember at the McDonald restaurant since 2012 working on different shifts, however during last summer while preparing to end my shift, my colleagues and I were asked to stay behind and work for an extra hours and since then, we are yet to receive the payment even with several trips at the accountant office. Wages and penalties from unpaid wages earned and due, including but not limited to upaid wages for time worked off the clock among others are daily complains at work. Media reports of disputes McDonald has been among the most high profile casualty with poor labor practices in Austria. Disputes are common and arise in any work place. In the recent media cases, McDonald employees in 19 cities have filed complaints over unresolved disputes with its employers tarnishing its repetition among the locals because the place has created vast employment opportunity for American population (Ayres 2012, 107). Last month, an ongoing campaign organized by the staff in support with a local group of labour team to win pay of about 15 euro an hour and unionization for fast-food workers by publicly pressuring the company to come to the bargaining tables. The lawsuit alleges McDonald’s workers were denied their rightful pay. The recent complaints lodged were supported by the Occupational Safety and Health Administration as workers organized a demonstration, complaining of being forced to work around the clock as the restaurant operate on a 24/7 economy with an aim to make profit.The company has few entitlements to its staff as it offers short time contracts and volunteer job opportunities. In a statement to defend the company, McDonald corp. explained that the company and its franchises are committed to providing suitable working conditions and salary issues will be reviewed The company has a long history of poor practice for employees work on holiday such as Thanks Giving and Christmas and goes without the overtime pay. A report realized by Mark E. Andersen indicates how the restaurants made about $36 million extra sales by opening during the recent holiday and yet continue to pay low rates to its staffs that choose to volunteer over the high season. Finance system are key evidence in the argument by labour groups that McDonald's exerts enough control over franchised restaurants to be considered a joint employer, yet the Commissioner McKenna has refused to approve the national McDonald’s Australia Enterprise Agreement 2009, despite the fact that the Shop Distributive and Allied Employees Union supported the agreement. McDonalds is appealing her decision and the appealing is awaited with great anticipation. List of References Ayres, I 2010, Optional law: the structure of legal entitlements,University of Chicago Press, Chicago. Bartelt, T 2010, Industrial automated systems: instrumentation and motion control, Cengage Learning Publisher New York. Eberstadt, N 2012, A nation of takers: America’s entitlement epidemic. New threats to freedom series, Templeton Press, New York. Forester, K. & Griffiths, D 2010, Essentials of law for health professionals, Elsevier Health Sciences, London. McMillian, G 1999, Process/industrial instruments and control handbook, Fifth edition, McGRAW-HILL, Washington. Trade Media Ltd, 2004, Market intelligence report: writing instruments: global sources market intelligence, Global Sources Publisher, Canada. Read More