Much loved Domino’s Pizza may get hit with a 24% loss to their Australian profits, if they declare it under their new enterprise agreement. This came from a report by Deutsche Bank which they are currently with.
Michael Simotas, an Analyst from the bank showed their current wage agreement expired in June three years ago. They also still do not pay penalty rates, awarding employees to work after 9pm, Monday to Sunday and on public holidays. “While wage cost is technically franchisees’ responsibility, we do not believe they could afford to fund the entire impost without some assistance from Domino’s,” he said.
There are quite a few changes the Australian company will have to make if they are hit with the 24% loss. They will have to reduce their specials such as they’re extra value range pizza menu and cut back the refurbishments to some local stores. However, Domino’s have released a statement saying it has been working with the SDA Trade Union for the past 12 months on a new agreement that will award their employees fairly.
The new agreement plans to feature rates such as 150 per cent on public holidays, 50 per cent on Sundays and 25 per cent on Saturdays. Late work on Monday to Friday, also attracts loadings of up to 15 per cent.