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July 19, 2018

NLRB judge rejects fast food chain McDonald’s labour settlement proposal

A federal administrative law judge has rejected a McDonald's labour settlement following numerous labour law violations.

A federal administrative law judge has rejected a McDonald’s labour settlement following numerous labour law violations.

In March this year, McDonald’s agreed to settle a multi-year litigation on whether the company is accountable for its franchisees’ alleged labour law violations.

The terms and other details listed in McDonald’s labour settlement remain unclear.

“The proposed settlement is fair, reasonable, and provides the opportunity now for full and complete relief to all franchisee employees.”

In 2012, the chain faced a series of legal claims filed by workers who were fired for participating in nationwide protests calling for higher wages and a union.

As per the proposed settlement, the company agreed to pay $20 to $50,000 to individual workers who claimed they were affected.

A trial, which started in 2015, was paused in January this year to allow the National Labour Relations Board’s general counsel Peter Robb to pursue settlement talks with McDonald’s.

Rejecting the settlement, federal judge Lauren Esposito was quoted by The New York Times as saying it was not “a reasonable resolution based on the nature and scope of the violations alleged and the settlements’ limited remedial impact.”

A statement from McDonald’s was quoted by Reuters as saying: “The proposed settlement is fair, reasonable, and provides the opportunity now for full and complete relief to all current and former franchisee employees affected by the litigation.”

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