The Australian Retailers Association (ARA) and the National Retail Association (NRA) are concerned by a recent decision of the Fair Work Commission (FWC) to issue a Supported Bargaining Authorisation covering McDonald's franchisees in South Australia. This marks the first time such an authorisation has been granted in the retail and quick service restaurant industry.
This decision significantly expands the reach of the supported bargaining stream and confirms the longstanding concerns raised by employers about the scope and potential overreach of recent changes to Australia's industrial relations framework.
The supported bargaining stream was intended to assist sectors with clear barriers to bargaining-such as disability care or early childhood education-where there is a clear need for coordinated negotiation, for example due to the structure of government funding and sector-wide regulation. That intent does not apply to the quick service restaurant industry, where hundreds of enterprise agreements have been negotiated under the ordinary provisions of the Fair Work Act.
"This decision raises serious questions about the threshold for supported bargaining and whether the stream is being applied more broadly than Parliament intended," said ARA CEO Chris Rodwell.
"Small business operators in fast food and retail are already facing significant cost pressures and economic uncertainty. This decision heightens the prospect of those struggling businesses being drawn into multi-employer negotiations without a majority of employee support is deeply concerning."
The ARA and the NRA urge the Federal Government to closely review the implications of this decision and consider targeted amendments to the Fair Work Act to restore clarity around when supported bargaining can be used.
"Franchisees and other small employers need certainty that the bargaining system will remain focused on genuine enterprise-level negotiation, not union-driven coordination across unrelated employers," Mr Rodwell said. The ARA and the NRA will continue to advocate for balanced and practical industrial relations settings that support both employee engagement and business sustainability.
