McDonald's Franchisees Fight Bargaining Push as SDA Targets Better Pay for 115,000 Workers

The battle over fast food wages is heating up, with McDonald's South Australian franchisees launching a legal challenge to a Fair Work Commission (FWC) decision that compels them to negotiate with the Shop, Distributive and Allied Employees Association (SDA) under the new supported bargaining laws.

In June 2025, the Commission issued a supported bargaining authorisation covering 5000 McDonald's workers across more than 50 sites in South Australia, effectively requiring franchisees to sit down with the SDA to negotiate pay and conditions on a multi-employer basis. That ruling is now under attack in the Federal Court, with 18 McDonald's franchisees seeking judicial review of the decision (Ardeen Pty Ltd & Ors v SDA & Anor, SAD152/2025).

But the SDA isn’t backing down.

From One State to a National Campaign

Emboldened by the South Australian authorisation, the SDA has filed additional supported bargaining applications across every state and territory, aiming to bring as many as 115,000 McDonald's employees into a national campaign for fairer wages and secure conditions.

McDonald's Franchisees Fight Bargaining Push as SDA Targets Better Pay for 115,000 Workers

For the young workers who make up much of McDonald's workforce—many of whom are award-dependent and in casual employment—this could be a game-changing moment.

SDA National Secretary Gerard Dwyer was blunt in his response to the court challenge:

"It says a lot about McDonald’s true feelings about its workers."

He called the Commission’s decision “eminently justifiable” and reaffirmed the union's commitment to opening up real bargaining opportunities for some of Australia’s lowest-paid workers.

Employers Cry Foul Over New Laws

On the other side, employer representatives like the Australian Industry Group (Ai Group) are sounding the alarm. Chief Executive Innes Willox warned that the Commission’s approach could force employers in other sectors—such as hospitality and retail—to engage in multi-employer bargaining, even when it doesn’t suit their business models or reflect the wishes of individual employees.

Willox argued that supported bargaining was originally intended for sectors like aged care and childcare, where government funding affects bargaining outcomes. He believes that applying the model to fast food, where such funding factors don’t exist, stretches the law too far.

He has called on the Albanese Government to urgently amend the Fair Work Act to clarify the intended limits of the supported bargaining stream.

What's at Stake for Workers?

This case goes beyond burgers and fries. At its core, it’s about whether workers in large franchise networks—who often do the same work under the same brand but for different franchise owners—should have the right to bargain together for better conditions.

Under the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, supported bargaining was introduced to give low-paid workers a collective pathway to negotiate enterprise agreements where traditional, single-employer bargaining has failed or stalled.

The FWC’s approval of the SDA’s South Australian application marked a major turning point—signalling that supported bargaining is not confined to government-funded sectors, and could apply more broadly where low-paid workers share similar job roles and conditions.

Why This Matters

If McDonald's franchisees succeed in the Federal Court, it could halt the SDA’s nationwide campaign before it gains full traction. But if the court upholds the Commission’s decision, it could open the door to supported bargaining in every fast food outlet and retail chain in the country.

At 1800NOWINNOFEE, we know that workers in these sectors are often voiceless, casualised, and underpaid. Supported bargaining provides a way to change that. It empowers workers—especially young and vulnerable ones—to join together and bargain for real improvements in wages, rostering, job security, and safety.

Whether you’re flipping burgers or stacking shelves, your work has value. And you deserve a voice.

If you’re unsure about your rights at work or want to join the fight for better conditions, get in touch with us today. Our no-win-no-fee advocates are ready to support you every step of the way.