Enterprise Agreements vs. Industry Award: Mc. Donald: 816458


Introduction (introduction & Presentation worth 5 Marks)

Recommend 2 paragraphs

Paragraph 1 –

  • Provide overview of workplace; what it is, where it is, who owns it, nature of work; nature of workforce (no need for references here)
  • What is the RELEVANT industry award (i.e. Hospitality, Fast Food, Nursing etc.)?
  • What is the Enterprise Agreement that the Business / Workplace currently operates under (note: this may be an “expired” agreement)?
  • With whom did the business negotiate the Agreement?
  • NOTE: details of Awards and agreements are found at the Fair Work Commission site: https://www.fwc.gov.au/

Paragraph 2 – introduces;

  • Provide a BRIEF overview of the industry award that applies to this workplace
  • Provide a BRIEF overview of the Enterprise Agreement that applies to this workplace
  • Summarise the main differences between the Award and the Agreement. In doing so provide:
    1. A brief summary of the benefit to the EMPLOYER
    2. A brief summary of the benefit to the EMPLOYEE
    3. Provide a brief EXAMPLE of how the wage of an employee on the enterprise agreement would be different compared to the award
    4. Outline the major differences between the Award and the Enterprise Agreement as to provisions regarding workforce and stakeholder diversity. These will include such things as:
      1. Provisions relating to Individual Flexibility Agreements as to leave to balance individual needs
      2. Provisions that ensure there are no discriminatory practices as per Fair Work Act s.172 (permitted matters) and FW.s.351 (provisions outlining discriminatory clauses)
  • Conclusion: why do you think the business negotiated the Agreement? Was the business the main instigator or was it pressure from unions and / or employees?

Industry research (Industry research worth 10 Marks)

Recommend 2 paragraphs

Paragraph 1

  • Provide overview of the industry: how many people does it employ? Are workers mainly male or female? Are workers mainly casual, part-time, full-time? What percentage of the workforce is in a union? What is the average wage
  • Discuss LABOUR MARKET circumstances – is it is a COMPETITIVE or NON-COMPETIVE LABOUR MARKET; is it a competitive or non-competitive PRODUCT MARKET

Paragraph 2 – summarise information you have found on the INDUSTRIAL STRATEGIES PURSUED by employers and unions in this industry. This information may come from employer websites, union websites or academic journals.

Industry Award – Summarize the main clauses in the award and explain relevance to business (worth 6 Marks)

            Recommend 3 paragraphs

Paragraph 1

  • Summarize the main clauses in the award that are relevant to this industry and business. For example, in retail the key provisions relate to shift-work.
  • Explain any operational problems that the award may cause for a business (i.e. double-time penalty rates on Sunday may make it too expensive for Sunday work)

Paragraph 2

  • Summarize the main clauses in the award that would be particularly relevant to employees
  • Briefly explain provisions that ensure stakeholder and workplace diversity. These may include: flexibility agreements, leave for culturally significant events, prohibitions on discriminatory conduct
  • Explain any issues that may cause employees to seek alternatives through an Enterprise Agreements

Paragraph 3

  • Give your views as to who mainly benefits from the current award and why.
  • NOTE: this may be someone outside the actual business. For example, most people believe that Woolworths and Coles gain from Awards in Retailing as they can afford higher costs better than smaller businesses

Enterprise Agreement – Summarize the main clauses in the Agreement and explain relevance to business (worth 10 Marks)

Recommend 3 paragraphs

Paragraph 1

  • Summarize the main clauses in the Agreement that are beneficial to the business. For example, in retail the key provisions typically relate to reduced shift / penalty payments
  • Explain any operational problems that the Agreement may cause for a business
  • Assess whether the employer is a net beneficiary

Paragraph 2

  • Summarize the main clauses in the Agreement that would be particularly benefit to employees
  • Explain any issues that may cause employees to be worse off because of Enterprise Agreements
  • Briefly explain provisions that ensure stakeholder and workplace diversity. These may include: flexibility agreements, leave for culturally significant events, prohibitions on discriminatory conduct
  • Assess whether the employees are net beneficiaries

Paragraph 3

  • Give your views as to who mainly benefits from the Agreement and why.

Workplace and Stakeholder Diversity

(worth 5 Marks)

In discussing the provisions relating to both the awards and enterprise agreements, highlight the provisions relating that strengthen workplace and stakeholder diversity. This discussion should include but not be restricted to the following:

  • Provisions relating to individual flexibility agreements
  • Provisions relating to personal / carers’ leave
  • Provisions that facilitate trade union membership
  • Provisions that prohibit discriminatory conduct
  • Provisions that facilitate leave for events of cultural significance for particular ethnic or religious groups
  • Outline the benefits of this for employees, and any possible costs
  • Outline the benefits and costs of these provisions for employers

Discussion and Conclusion (worth 9 Marks) – Reflect on what this Enterprise Agreement says about Industrial Relations in this Industry

Recommend 2 paragraphs

Paragraph 1

  • Outline any research that has been written about employment relations in this industry or research that is relevant. You may wish to look at journals such as: Journal of Industrial Relations, Labour History, Journal of Management History

Paragraph 2

  • Summarize why you think the outcomes that you have described have occurred.
  • Do outcomes primarily reflect the business using Enterprise Agreements to further its business interests?
  • Does the Agreement – instead – reflect trade union strength in this industry?
  • Who is better off?
  • Who is worse off?
  • WHY?


2001EHR Assignment – Business Assessment: Enterprise Agreement v Industry Award – Marking Guide



The report will be written with the agenda of presenting the relationship between enterprise agreement and industry award. The chosen company for demonstrating that is Mc. Donald’s, largest fast food chain of the world and currently employer of more than 1 million people. It was first opened in America as a form of restaurant owned by Richard and Maurice McDonald. After that, it differentiated its business into franchised fast food chain. The nature of work is to handle live food delivery and customers within scheduled time maintaining the quality of service. Staffs are bound to serve within a stipulated time with efficiency targeting the profitability (Fwc.gov.au, 2018). The universal feedback from the employees is not entirely positive. The most common complaints against McJobs are that ,it is not prestigious, long working hours, chances of future growth is zero; moreover employees are not provided with adequate salary and benefits (Forth et al., 2013).

On the contrary, the workplace is example of efficient teamwork. Management provides uniform and free meal for crew too. According to the decision of Fair Work Commission as described in fast food industry award 2010, casual employees as well will be paid for overtime. This is applied to all the casual employees including juniors, trainees and handicapped candidates who carry out responsibilities of taking orders, delivery and sales of foods and beverages (Waring & Lewer, 2013).

Overview of the industry award

Fast food industry award 2010 carries references of relevant awards. These are subjects of approval as a part of the agreement, which is filed with Fair Work Commission. There are awards for overtime for all the levels, which is 175% of the wages. In case the employee is working on Sunday wages will be 225% more than the regular and on public holidays 275% of wages must be provided (Fwc.gov.au, 2018).

Overview of the Enterprise Agreement

This agreement is going to be applied to the employers of McDonalds and all the employees engaged with the company and franchised outlets around Australia. This agreement is subjected to approve by fair work commission and expiry date is on 24th June 2017.  In collaboration with The National Employment Standard, this agreement has covered minimum conditions of employment with the approval of legislation for potential and existing employees (Fwc.gov.au, 2018).

Industry research

            The fast food industry in Australia is quite a vast one. This industry employs more than 150,000 people all over the country (Forth et al., 2013). The fast food industry grown is something more than 3% per year. It has always provided good job opportunities for the unemployed people (Fwc.gov.au, 2018). The employees of the fast food industry are generally male (Waring & Lewer, 2013). The industry always provides an easy access for their clients. Around 20-30% of the employees of the fast food industry of Australia are associated with the labor union. The average wage of the industry is around $10-15 for an hour. As per the experts, the labor market in the fast food industry is quite competitive indeed. There are several competitors in the market to give challenges to McDonalds.

As of July, 2018, the minimum wage rate in Australia has increase by 3.5% to an amount of AUD 719.2 which can be stated to be quite above the current inflation rate. The wage has been an all time high at this time. With the help of the unions, the plight of the wage workers has been adhered to an over the past few years whereby the wages have increased at a steady rate of approximately 15$ per year.


(Source: Tradingeconomics.com , 2018)

The Australian Food and Grocery industry has reflected upon the fact that there has been considerable rise in the industry whereby the industry has reflected that there is a figure of $127.4 bn and the given industry has added around 7500 jobs in the year 2015 to 2016 which shows that the industry has added a significant resilience. Moreover, it can be stated that there has been a considerable high employment growth and capital investment which has been good for the overall economy. The chosen industry employees around 320300 people which tends to represent around 33% of Australian jobs in the specific industry. This figure can be stated to be considerably good despite the decrease in the turnover of the industry. Although the costs on the industry are rising, the retail deflation assists to control the margins whereby the sector has been under pressure (Afgc.org.au ,2018). There has been a considerable increase of 4.7 per cent which can be a turnaround with respect to the investment and employment. These investments will be beneficial for those areas where around 40 per cent of the jobs are located. As compared to the year 2017 from the year 2016, the employment has increased considerably to rate of 12620700 in general whereby the employment has decreased to 711900. Hence, this figure reflects that there has been a considerable increase in the employment level which has been directed by substantial investments into the sector. However, in order to ensure that these rates improve considerable, the unions play a lead role.

The unions will look to implement some strategies that would be very important to get the rights for the employees. The labor unions would try to tie up with the tie up with the several communities because this will be beneficial from the end of the employees. The labor unions would try to implement the community unionismin their society. This will surely be helpful for the unions to push the employers of McDonalds to increase the wages. As per the employers of McDonalds, they will stress on the employees to work sincerely and effectively. The employers will go on to create the online forum through which they would keep connected with all the employees. This strategy will pursue for the best interest of the employers indeed. The labor union will focus mainly on creating the professional identity of the workers of McDonalds and make connections through the digital unionism strategy. The Dispute Settlement Team will take prompt actions against the violation of the employment bargaining issues.

Industry award

            There are some points or clauses that could be the most effective things in the case of the industry awards in the fast food industry. Nankervis et al., 2016).The payments in this industry are fairly well and this is one of the most positive points for the sustainability of the organization as well as the industry. The hourly pay rates are quite high as well. There are some operational problems that could be considered as much vital for the business. On Sundays the crowd is more because of the holiday. The online deliveries are more on these days as well. As per the industry awards, the wages of the workers of McDonalds have a negative impact if the workers are unable to deliver the food products on time. The penalties are imposed on the daily wages of the employees. The penalty rates are as high as 50% on the employees. It is because this delay in the delivery on Sundays will definitely hamper the customer satisfaction. This is why it has become quite expensive for the employees of McDonalds to work on the Sundays. The payment in the night shift works is quite high (Townsend, Wilkinson & Burgess, 2014). However, the employees can be sent to the lower paid duties if they are accused of the redundancy (Cunningham, 2012). The travelling time reimbursement is also provided to the employees as well. The transport charges are being paid by the fast food industry organizations for the benefit of the employees. The redundancy can cause some operational problems within the organization sometimes (Charlesworth & Macdonald, 2015).

The relevant things in the industry award are the payment facilities for the employees on the different occasions. The performance appraisals prove to be much beneficial for the employees in different ways. The recruitment policies of the fast food industry are quite impressive and there are good chances for the promotion (Charlesworth & Macdonald, 2015). It is both the male and female employees who would benefit mostly from these industry awards. It is because they are provided with the opportunities for the promotion, financial benefits for working on the night shifts and on Sundays. The employment bargaining related to the fast food industry should have a positive impact on the employees as their salaries might get increased and they might get double payments by working on the public holidays. However, they might get the extra leaves on the various cultural events in an alternative manner. The employment negotiations will have to be made in terms of providing a better workplace environment for the employees. McDonalds will surely look into these issues as they have a high market reputation in the fast food industry. McDonalds will also have to think of the welfare of their employees as well. If any problems arise, McDonalds employees will consult with the labor union regarding getting of the daily wages and getting sick leaves on time (Mishra, Boynton& Mishra, 2014).

Enterprise agreement

            There are several things that would be highly beneficial for the business. McDonalds would be able retain their best talents and will be able to meet their organizational requirements through them as well. The company would be able to gain new production targets and optimize them for the benefit of their higher margin of profits. McDonalds will be able to satisfy their clients by providing the best quality of food. These enterprise agreements will also help them to achieve their objectives and expand into various new locations with the help of their employees. The production costs are reduced as well. Thus the employers would be the net beneficiary (Andrew & Sofian, 2012).The shift payments had been reduced by McDonalds due to the inflation in the last few years. The employees have revealed that the casual employees were being made as the part-timers and this hampered in their shift timings as well. This meant their payments had been affected because of this as well. McDonalds have not paid much on the weekends and on public holidays as compared to the other organizations in the fast food industry. This had been the major concerns of some of the employees. The employees had to work on long shifts on weekends due to the work pressure but they were not being paid well on the night shifts also. The enterprise agreements might cause some problems due to the various clauses. The notice of termination by an employee will have some serious implications on the business. If the employee decides not to work on the 1 week notice period, this will surely have a negative impact on the productivity and service delivery of the organization.

Through these enterprise agreements, the employees would be highly benefitted from various ways. The productivity of the employees would be increased in a lot of ways (Oliver, 2016).Some problems caused because of the clauses of the enterprise agreements in the business. The workplace diversity is encouraged largely in this context. The workplace safety should be given the utmost importance and McDonalds should look after this issue in the best manner as well. Thus it would be obvious that the employees would be highly benefitted in this matter (Andrew & Sofian, 2012). It has been seen in some cases that the payments for the employees under 16 years or age is around $328.41 and it could go up as high as  $821.02 for the employees over 21 years of age. The hourly payment rate of the employees will also rise with age and experience. The employees under 20 years of age will get up to $19.45 whereas the employees over 21 years of age will paid up to $21.61. There are different levels of employees like the Level 2 and 2A, Level 3 and Level 4 employees. The payment rates of the Level 4 employees above 21 years will be $881.69 per week and around $23.20 per hour. On the contrary the payment rates of the employees under 16 years of age will be around $391.86 per week and $10.31 per hour. There is simply a striking difference in the hourly and weekly payment rates that will be important for the distribution of work among the employees.

Some examples can be given in this section as to how the payment of the employees could be affected by the enterprise agreements (Pruitt, 2013). The employees can be accused of the redundancy sometimes. This will be considered as a punishable offence by the management of McDonalds. In these circumstances, the company might not be able to terminate the employees from the agreement but they will surely be able to decrease the salaries of the employees. On the other hand, the overtime shifts can also earn them higher amount of money through the incentives. These are the two ways the enterprise agreements can affect the payment of the employees (Pruitt, 2013).

10 9

Workplace stakeholder diversity

            The individual flexibility provisions should reflect in the ability of the employees within the realms of working with the employees belonging to the different cultural backgrounds (Cuppen, 2012).The personal carers’ leave should be sanctioned in order to show the employees that McDonalds cares for their employees. This will surely bear a positive impact on the minds of the employees in the best ways. The trade union membership has a special place in the undertaking of the different provisions within the workplace. If there is any mismanagement issue within McDonalds, this should reflect in the protests by the members of the trade union (Baldwin, Bommer&Rubin, 2012).The discriminatory conducts of the employees and the managers should be protested in the best ways to drag the attraction of the higher authorities. The workplace safety should be maintained properly. The specific leaves should be approved by the managers to the employees of different religious groups. These things would be highly important for the organization McDonalds to implement in the best ways (Conchie, 2013).The employees would be benefitted financially and from the aspects of their career growth. The employers, too, will be benefitted by the expansion of the business to new areas by rapid annual growth.


            As per the above discussion, the paper can be concluded by saying that McDonalds will have to implement the various strategies in order to attract the attention of their customers. However, the employee negotiations, enterprise agreements and industry awards would be highly important as well. The company will have to provide the best facilities to their employees to keep the workplace environment at the best place. Both the employees and the employers would be largely benefitted by the industry awards. The stakeholder diversity will have to be maintained in the positive ways to be the market leaders once again. The statistics showed in the report describes that McDonalds have not been able to provide the proper parameters for the employee welfare in the best possible ways. It will be very much important for the company to abide by the national standards of the wage payments. This will be highly important for the employee retention in the best ways. The employees want the proper facilities being provided to them and in turn they will also provide the best works for the company. McDonalds should always try to meet the enterprise agreements suitable for the employees. The industry awards should also be given to the employees on proper time in Queensland. As the employees have some grievances about the ways they are being treated and they have also said that they are not being given their wages on proper time. These problems should be resolved in order to maintain their brand reputation in the best ways.


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