Chiselling fools. Domino’s Pizza Enterprises has been one of the country’s better performing companies, expanding its pizza reach via fast home delivery service in Australia, Asia (especially Japan) and deeper into Europe, with a big deal in France mid-year. The shares have surged from just over $22 to more than $51 in the past year as investors have cottoned onto the growth story. But a story on news.com.au yesterday reveals that the WorkChoices mentality of screwing employees, especially teenagers, is alive and thriving among the board and senior management of this star stock. It is a high-flying performer on the ASX. But at store level, it’s another story.
“Brisbane-based Domino’s has confirmed that as of 7 December, all in-store and supervisor casual employees will be ‘offered’ permanent part-time roles instead — but it’s an offer they can’t refuse.
“Staff were informed two weeks ago of the new national policy, but many were told they had to sign the new contracts and accept a $2.37 pay cut from $11.86 to $9.49 an hour, or they would simply not be given any more shifts.”
— Glenn Dyer
Who, us? Domino’s would defend the move by claiming the part time staff will be entitled to some holiday leave and other benefits — but what use is access to holidays for a teenager when they get school holidays, and have to go to school anyway? It is a meaningless benefit that is being used to cloak the real reason: cost cutting through slashing wages.
In a statement to news.com.au, a Domino’s spokesman didn’t dispute the pay cut, saying: “This is contrary to what was instructed to our corporate store managers. We are happy to receive more information so we can address this with the store and management in question.” She further clarified that staff at the Runaway Bay store “were instructed to think about the conversion for no less than 24 hours and if wishing to convert could they please return the contracts by Saturday 28 November”. — Glenn Dyer
But take a closer look. When you look more closely at Domino’s you find out just how mean-spirited and nasty this cost-cutting move it because you find there’s one rule for the board and management and another for the staff.
The notice of meeting for the company’s AGM, held on November 4, reveals that shareholders were asked (and then approved) a proposal to boost the fees paid to non-executive directors by 25%, or $200,000 — taking fees to $1 million. The last pay rise for these hard-working folk was back in 2013. Obviously they are desperately overworked. The Domino’s board is in need of sustenance. After all, it only includes three multimillionaires: Domino’s chairman Jack Cowin (he’s a director of Fairfax and of Ten and also the founder Hungry Jack’s in Australia); Ross Adler, a former CEO of oil and gas group Santos until 2000; and Don Meij, Domino’s CEO and a very rich man indeed. — Glenn Dyer
Follow the money. The 2014-15 annual report reveals that Cowin (who is worth hundreds of millions of dollars) was paid $179,378 for playing the role of director and chairman at Domino’s. Adler was paid the same amount. And poor Don Meij was paid $3.115 million for CEOing one of the best-performing companies on the ASX in the past year or more. His pay jumped from $2.2 million in 2013-14, a rise of nearly 50%. No pay cut for Don. He also has 1.4 million options to buy shares, which, if exercised now, would be worth a gross $70 million at current prices on the ASX. So Domino’s wants to up the pay of executive directors while cutting $2.37 an hour from part-time teenage employees and others. That is unfair and is redolent of the discredited WorkChoices thinking of John Howard.
When did WorkChoices work its way back into everyday Australian business life? No wonder so many young people don’t trust business and regard them as out to feather their own nests at the expense of others. That might be unfair, but this move of Domino’s is pretty sneaky (coming just before Christmas) and the company and its management should know better. Real wages are weak, inflation is low and consumers are spending money — Domino’s net profit jumped 51% to just over $64 million in the year to June. Greed is good, so long as its from the senior managers and the board, but not employees. Those $5 pizzas have to be paid for somehow! — Glenn Dyer
The only power the public has is to hit the company in its profits. We need to know the wage rates at all pizza outlets and then ensure we only buy from those paying a decent wage. I’m sure the public can survive eating homemade food for a few weeks.
RutaM – if only that were true. What sort of fool eats take-away when not drunk?
Unfortunately a heart stopping proportion of the poorest quintile.
Glen, whilst I can see your point about executive pay and perk rises, the rest of your story is poorly informed and/or researched.
I like a good beat up as much as the next reader but the fact is that casual employment rates are the normal award rates plus a 25% penalty to cover the lack of annual holiday and personal carers/sick leave. Casual is employment based on a shift by shift basis, not entitled to unfair dismissal rights, and insecure in many other ways. Permanent part time removes the 25% loading but returns it via paid holidays. Permanent part time employees are entitled to public holiday pay if such a holiday falls on their normal shift date. Casuals are not. Permanent part-time employees are entitled, after the qualifying period, to unfair dismissal protection.
Part time employees will get the pro-rata equivalent of 4 weeks PAID annual holidays and 2 weeks of PAID sick leave. Whether or not they take the holidays when they are at school or not is beside the point. They still get paid when they take the holidays – and in fact when they resign or are terminated they get their holiday pay as a lump sum.
Permanent part-time also requires a set and agreed amount of hours per week (minimum) which must be placed in the contract. Casual means you may or may not get a shift.
Also, just in case you’re wondering re I do not work for Pizza Hut or Dominos or any equivalent (in fact I do not even eat their products) – but if you are going to write for an independent newspaper that prides itself in seeking the truth, please remember just writing stuff like this as if it’s true does not make it true – it makes for stir-mongering, and it poorly represents your trade.