Dominos back into the oven for wage theft

Back into the oven for the pizza giant, via the Herald Sun:

Pizza giant Domino’s will on Tuesday be hit with a class action by workers who claim to have been underpaid for almost five years.

The class action is being brought on behalf of delivery drivers and in-store workers employed across Domino’s franchise network.

It alleges key award entitlements were systemically avoided between June 24, 2013 and January 24, 2018.

…The issue came up after an investigation spearheaded by the Retail and Fast Food Workers’ Union.

“The scale of Domino’s misconduct is unprecedented, and we believe tens of thousands of workers were never paid for casual loading, penalty rates, travel costs and laundry allowances,” union secretary Josh Cullinan said.

Herein lies Australia’s current malaise. A businomics press has driven ScoMo to a new industrial relations reform push against unions when the real issue is collapsing wages growth, in part thanks to marginalised unions (which is not to say that many or most aren’t corrupt).

Not only is there zero chance of accelerating wages growth ahead, ensuring a weak domestic economy, it will get worse as the growth drivers we have enjoyed – dwelling and infrastructure building – fall away. Into this output gap will pour millions more cheap labour migrants, making it even worse. Read more here for the facts.

This economic and wages weakness would normally be punching a huge hole in the Budget via weak income taxes, leading to very ill-timed and pro-cyclical public austerity. However, for the time being, the domestic economy Budget black hole is being papered over by booming commodity prices and mining tax receipts.

When they crack again is when we’ll really need to worry. Then there will be nothing between the Government and a fiscal train wreck and the public employment boom will end. Nor will there be any monetary policy offset.

It is then that another downturn in property prices becomes quite problematic.

Comments are hidden for Membership Subscribers only.