Regions

McDonald's hit with labor and tax malpractice allegations during Brazil hearing

August 21
7:28 PM 2015

Fast-food giant, McDonald's was recently hit with allegations suggesting that the company has been avoiding making tax payments and abusing their employees during a hearing held in Brazil.

The fast-food company has allegedly committed numerous health and safey violations with regards to their employees, which ultimately led to the hearing. McDonald's has also been accused of providing low salaries to their employees.

To be more specific, some union representatives have said that Brazilian franchisees of McDonald's have been denying extra time pay for their workers while also preventing them from signing up to join unions. McDonald's has also been accused of allowing some of their employees to work inside kitchens even without any protective gear, leading to some obtaining burns from grease and cooking equipment, according to Reuters.

Several people from different walks of life made an appearance at the hearing, including employees of the company, trade union representatives and politicians. The people who made an appearance at the hearing came from five different continents, according to The Guardian.

Notable individuals who testified at the hearing included Adriana Alvarez, a McDonald's cashier from Chicago. According to Alvarez, after five years of working for McDonald's, she makes $10.50 per hour, which she said is not enough to even pay for the care that her child is in need of.

Scott Courtney, from the Service Employees International Union based in the United States also testified at the hearing. According to Courtney, McDonald's business practices have forced people into dead-end jobs while they simply skirt taxes they are obligated to pay.

Jutta Steinruck, a member of the European Parliament, also spoke during the hearing. Steinruck said that it is important that the entire world understands that McDonald's has been unfair towards their employees and that they should be facing pressure from the entire global community not just to pay their taxes as the law dictates but also to give their employees proper wages.

Steinruck has also revealed that McDonald's is currently being investigated for supposedly avoiding a tax bill that is already in excess of one billion euros.

Arcos Dorados Holdings Inc., the largest McDonald's franchisee in the entire world received an invite to the hearing but ultimately opted not to attend. Instead, a representative for the company offered a statement, suggesting that the fast-food company has complied with all the labor laws. Arcos Dorados also said that McDonald's is proud to be an employer of many young Brazilians inside the country.

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