Pizza Hut employees will now be paid proper fast food industry award rates, including increased penalty rates.
The change comes as a result of the Fair Work Commission terminating 30 year-old expired workplace agreements.
The fast food chain is the latest business to have its so called ‘zombie’ agreements terminated.
The out-dated agreements allow employers to legally pay workers well below current modern award rates.
Pizza Hut has been paying low wages for too long
Industrial advocate Miles Heffernan from IR Claims welcomed the decision.
“Zombie agreements allow big companies like Pizza Hut to get away with paying below award wages and entitlements, and its gone on too long,” he said.
“In addition, the agreements give companies like Pizza Hut a competitive advantage, because of a cheaper wages bill.”
The Commission previously terminated zombie agreements in Justin Hemmes’ billion dollar pub and restaurant empire, The Merivale Group.
“FASHION RETAILER FORCED TO PAY PROPER WAGES AND ENTITLEMENTS”
Union failed to factor in annual wage increase
The Shop, Distributive and Allied Employees’ Association (SDA) initially negotiated the original Pizza Hut agreement on behalf of workers.
In it, they agreed to give up penalty rates for a higher hourly rate, however, they failed to factor in an annual 3.3 percent wage increase.
Therefore, over time, the annual wage increase resulted in the workers falling behind the industry award.
What it means for workers
As a result of the termination of the old agreement, 4000 Pizza Hut workers across 200 stores will receive higher hourly rates and penalty rates.
A spokesman for Pizza Hut told Nine Newspapers the company is happy to consent to the termination of the old enterprise agreement.
“We are pleased to announce that a move to the Award will simplify processes throughout the network and further improve the working conditions of our people.
“Our franchisee partners are looking to mitigate the increase in labour costs through benefits unlocked under the Award and a savvy use of their existing labour force.”
“WORKERS RIPPED OFF WITH ZOMBIE WORKPLACE AGREEMENTS”
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