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Strategist.com – 08 April 2015 – According to thinkprogess.org Domino’s C.E.O. is to follow the footprints of McDonald by increase their gross payment.
Sometimes, during last week, McDonald made an announcement about the increment on its salary wages. The employees working in the stores that are owned by the company would enjoy the benefits. However, the announcement relates to only ten percent of all the “company-owned” store locations.
However, the afore mentioned announcement was only a subsequent step of similar announcements made by various companies like Gap, Walmart, Target, Marshall’s and TJ Max, who showed their consent on raising the salary bar of their lowest wage amounts.
Likewise, the C.E.O. of Domino’s, Mr. Patrick Doyle, in his correspondence with the CNBC on Monday, 07 April 2015, answered in the similar tone to the question of the Domino’s position and view on the “increment of payment” talk in the market. In fact, Bryce Covert writes:
Sometimes, during last week, McDonald made an announcement about the increment on its salary wages. The employees working in the stores that are owned by the company would enjoy the benefits. However, the announcement relates to only ten percent of all the “company-owned” store locations.
However, the afore mentioned announcement was only a subsequent step of similar announcements made by various companies like Gap, Walmart, Target, Marshall’s and TJ Max, who showed their consent on raising the salary bar of their lowest wage amounts.
Likewise, the C.E.O. of Domino’s, Mr. Patrick Doyle, in his correspondence with the CNBC on Monday, 07 April 2015, answered in the similar tone to the question of the Domino’s position and view on the “increment of payment” talk in the market. In fact, Bryce Covert writes:
“He (Mr. Patrick Doyle) responded that with an improving job market, employers will have to raise wages to attract workers, including his own.”
In Doyle’s own words:
“The great news is the economy is moving, it is getting better, it’s getting harder to hire people, it’s why i think you’ve seen a lot of these announcements around pay. I think the reality is the labor market is tightening up, you know, and we’ve got to respond to that. It’s getting harder to hire people, that drives wages up and that’s a great thing.”
Moreover, in answer to the specific question of whether Domino’s too plan on increasing the wage margin, he promptly replied that almost over ninety percent of Domino’s outlet locations operate on a franchise basis. Therefore, the company being the franchisor cannot exercise any right to increase wages own decision as that decision can only be made by the respective franchisees.
Nevertheless, talking about the remaining ten percent of Domino’s outlets, which amounts to about four hundred stores that are directly operated by the company Mr. Doyle adds:
“we’ve got to pay more to get people right now.”
As per Domino’s wage records, the company doesn’t show very promising evidences. Even though, it pays the workers in an average of $7.42 per hour and $8 per hour for delivery boys and in-store employees respectively, two New York based franchisees of Domino’s had to intervene to settle over a “wage theft last year”. The payment made towards settlement of wages in one case amounted to $1.3 Million whereas the other one amounted to “$448,000”.
Yet, sources inform that recent “wage theft” by the workers are creating commotions in Georgia. It seems due to such complaints the company had earlier fired about twenty five workers but eventually they had to be retained as instructed by the Attorney General of New York.
Nonetheless, Domino’s, as mentioned earlier, is not the only company who is thinking about raising the wage margin in order to recruit more employees. Bryce Covert writes:
“Research has found that higher wages reduce turnover and attract better job candidates while also increasing productivity, performance, and customer experience.”
Consequently, all major market figures, like TJX and Gap among others made the announcement in regards to augmentation of salaries. Moreover, many of them are also under the pressure of various “labor activists”.
References:
http://thinkprogress.org/economy/2015/04/07/3643649/dominos-wages/
