Brazil unions sue McDonald's, try to block new stores

Staff Writer
Columbus CEO

SAO PAULO (AP) — Brazilian labor unions are suing McDonald's and its local franchisee Arcos Dourados for allegedly violating labor laws for at least 30 years.

The suit filed Monday in Brasilia also seeks to prevent McDonald's from opening new stores until it complies with legislation and asks that it be slapped with penalties of up to 30 percent of its revenue in Brazil.

The suit was spearheaded by the union for fast food restaurant workers.

It says in a statement that the defendants have "violated minimum wage laws, committed timecard fraud, failed to pay overtime, denied employees regular schedules, and used underage workers, among other illegal actions."

Arcos Dourados said by email that it has not been notified of the lawsuit and that all of its labor practices conform to Brazilian legislation.