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Fast Food Giant McDonalds' Hit With $100 Million Class Action

McDonalds' has been hit with a $100 million class action for the alleged underpayment of tens of thousands of employees.

9 News Australia 8 DEC 2023

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In a significant development, McDonalds’ is facing a $100 million class action lawsuit filed in favor of an estimated 25,000 workers, alleging unpaid labor.

The crux of the lawsuit revolves around claims that McDonald’s managers and supervisors were compelled to perform tasks beyond their scheduled shifts, without any additional compensation.

This unpaid labor, referred to as a ‘pre-shift check’ and post-shift handover tasks, allegedly extended their workday by an hour, without reflecting on their paychecks.

Unpaid Labor: A Matter of Rights

The lawsuit underscores the need for fair compensation and adherence to labor laws. The Shop, Distributive and Allied Employees Association (SDA), the union behind the lawsuit, alleges that the unpaid labor has led to an average underpayment of more than $200 a week.

If proven, the implications could be severe, with the fast food giant potentially in violation of labor laws. The specifics of the lawsuit and the detailed allegations are yet to be fully disclosed, however, the overarching issue of fair compensation for work done stands clear and stark.

McDonald’s Expansion Amid Controversy

Intriguingly, the lawsuit arises alongside an aggressive expansion plan from McDonald’s. The fast-food giant announced its intention to open 10,000 new restaurants over the next four years, aiming for a global total of 50,000 restaurants by 2027.

This ambitious plan, named ‘Accelerating the Arches’, also includes a new partnership with Google Cloud to boost automation using AI, promising ‘hotter, fresher food’ to its customers. McDonald’s also plans to expand its loyalty rewards program, aiming to increase its active users from 150 to 250 million by 2027.