Hangover saviour and noted kitchen frankensteiner Pizza Hut is today finding themselves in severe hot water over the alleged underpayment of some of its delivery drivers.
For quite a while now, the company has been at loggerheads with its franchisees over corporate demands to continually slash pizza prices in order to compete with rival chains like Dominos.
Franchisees have, as a result, claimed issues of business downturn and even collapse as a result of the plummeting bottom line.
And today, the company’s corporate headquarters finds itself falling out of the frypan and into the fire, as it’s being claimed that some franchisees have been using “sham” contracts to pay delivery drivers as little as $12 an hour.
Fairfax Media reports that the contracts are being offered by some franchises to delivery drivers, that either offer $6 per delivery – with a maximum of two deliveries per round trip – or a base rate of $8 an hour, with $4 per delivery on top.
The agreements are not covered by WorkCover, and contain no superannuation contributions. They also stipulate that a driver must provide their own vehicle, and contains no provision for fuel or maintenance allowances.
In essence, the contracts are treating drivers like independent contractors running their own pizza delivery businesses. An idea that is a complete sham, according to Maurice Blackburn principal Josh Bornstein.
“Is this driver an independent business person in the business of delivering pizzas? In my view, absolutely not.”
“He is employed to deliver the company’s product as and when directed. He is not genuinely running a pizza delivery business. In other words, in my view, the contract is a sham.”
Pizza Hut themselves reacted to the alleged contracts, with a spokesperson claiming no knowledge of the documents – reasserting that the company’s delivery drivers are entitled to the proper AWARD wages, as stipulated by the SDA.
“This contract, if authentic, is inconsistent with Pizza Hut’s enterprise agreement which is in place for Pizza Hut franchisees.”
“Pizza Hut with its franchisees have negotiated a national enterprise agreement with the Shop, Distributive and Allied Employees Association (SDA) under which includes rates of pay for drivers and team members.”
Under SDA agreements, pizza delivery drivers are entitled to rates of pay of $20.35 per hour for full time workers, and $25.44 per hour for casual workers. Vehicle costs are covered by an additional payment of $2.13 per delivery.
UPDATE: Pizza Hut General Manager Graham Houston issued the following statement on the matter.
“Pizza Hut is investigating claims that some franchisees are not acting in accordance with our existing enterprise agreement with the Shop, Distributive and Allied Employees Association (SDA). We have not seen the contract referred to in media coverage and therefore cannot make specific comments at this stage. We take these claims very seriously and will ensure our investigation is a priority for the business.”
