Uploaded by Katherine Rachel Nguyen

ACCT 1081 RMIT.edited

Domino’s Pizza Enterprises Limited is the recognized franchisor of Domino’s Pizza, the world
leader in pizza delivery from the United State, and the largest pizza chain in Australia, the world
leader in pizza delivery from the United States. In recent years, Domino’s corporating with the
Fair Work Ombudsman (FWO) has conducted the auditing process on the franchisors and stores
as the requests by delivery-driver employees within the Domino’s Pizza. At the end of 2016, a
great deal of information from many sources was sent to the FWO for the indication of
underpayment happening commonly through the Domino's network.
1. What are the relevant facts?
Domino's franchisees and stores have been investigated by the Fair Work Ombudsman in order to
conduct the requests from many employees who are working in here and see whether they have
paid enough worker entitlements, such as wages, delivery allowances, and leave credits. The
investigation has been conducted in a sample of 33 Domino’s stores which are selected randomly
and intentionally due to reported issues. By focusing in-depth on 33 stores which includes twentyseven franchises, six corporate and one joint venture, some results have been collected:
Only 4 stores complied with workplace law.
10 out of 33 stores audited remain under investigation.
19 out of 23 finalized investigations had at least one breach of workplace law.
Non-payment for additional hours worked, allowance for delivery drivers, annual leave
loading, personal leave entitlements, and unauthorized deductions are the issues figured
17 formal cautions by the FWO have been given to Domino’s
Average of the underpayment is about $100 per worker (from 6 February to 5 March 2017
at each store).
The results highlighted systemic issues within the Domino’s network.
2. Who are the primary stakeholders?
Primary stakeholders are people who directly take benefits from or affected by the business
activity. In this case of Domino’s, primary stakeholders are employees who are working on the
Domino’s franchises and stores. They are delivery staffs who have been underpaid and not been
reimbursed for gas and miles. Besides, they are also over-time workers unpaid.
3. What are the ethical issues?
There are some ethical issues rising in Domino’s store chain. Firstly, the franchises and stores are
unfair in payment for workers. When employees work in additional hours, they have not been paid.
Delivery workers have also not been provided for traveling allowance. Moreover, employees have
not received annual leave loading and personal leave entitlements, and have incurred unauthorized
deductions. This shows the unconcern from the franchises and stores for their employees.
Secondly, Domino’s franchises and stores have not abided workplace law and labor law. They
have not followed laws, rules and regulations as the investigation of the FWO have shown that
each store has at least a breach. Thirdly, some Domino's store chain has not also corporate with
the FWO in the auditing and investigating the process. This illustrates the lack of honesty in the
business. The ethical issues can be seen and commented on these perspectives:
3.1 Utilitarianism
Utilitarianism argues that the best ethical alternative is the one that will produce the greatest
amount of net pleasure to the widest audience of relevant stakeholders. In this case, pleasure can
be measured in terms of employees satisfaction. Presumably, the staffs who work in the Domino's
franchises and stores are satisfied with the working condition, so there is no product dissatisfaction.
The only dissatisfaction is the underpayment or non-payment for the additional working hours,
delivery allowance. Utilitarianism requires that the businesses examine the consequences to all
stakeholders. The dissatisfied workers requested for assistance from the FWO to demand their
benefits and they could quit jobs. To relieve this, Domino’s should offer and pay enough for their
level of working. It should also take careful consideration for supporting the allowance. This can
satisfy the workers so that they keep loyalty and hard working in the stores.
3.2 Deontology
Deontology is the morality of action should be based on whether that action itself is right or wrong
under a series of rules, rather than based on the consequences of the action. From a deontological
perspective, the consequences are unimportant. What is important is that the decision was made
for the right reasons. In the case of Domino’s, they have no care about the benefits of employees
in order to maximize their profit. They have not concerned about the desire of employees when
they offered and paid them with low wages. The decision made by Domino's now is to immediately
improve and change wage policies and following the labor laws. This can create the shortage and
reduction of profit, however, these are not important when at the moment, the benefits should be
set above.
3.3 Justice and Fairness
Distributive justice argues that equals should be treated equally and that unequals should be treated
unequally in relationship to their relevant inequalities and differences. The problems of justice and
fairness in the Domino’s case were that the franchises and stores have not behavior fairly with
their employees. They have not looked at the work and responsibilities workers have taken and
evaluated their efforts in working. This is unfair for all workers when they could have received
their entitlements for their trying. Justice and fairness in the workplace for Domino’s employees
should be performed through right and fair payment for each situation. They have also received
the benefits as the same position in other companies.
Ferguson, A. (2016). Domino's Effect. [online] Sydney Morning Herald. Available at:
https://www.smh.com.au/interactive/2017/the-dominos-effect/ [Accessed 28 Mar. 2019].
Mario Christodoulou, A. (2017). Domino's Pizza workers kept in the dark about underpayment for
almost two years. [online] The Sydney Morning Herald. Available at:
[Accessed 28 Mar.
The Independent. (2017). Domino’s Pizza sued for systemically underpaying employees. [online]
Available at: https://www.independent.co.uk/news/world/americas/domino-s-pizza-suedfor-systemically-underpaying-employees-a7048431.html [Accessed 28 Mar. 2019].
Goldman, D. (2017). Domino's sued for underpaying its staff. [online] CNNMoney. Available at:
https://money.cnn.com/2016/05/24/news/companies/dominos-wages/index.html [Accessed
28 Mar. 2019].
The Guardian. (2017). Fair Work audit finds just four out of 23 Domino's stores comply with
workplace law. [online] Available at: https://www.theguardian.com/australianews/2018/sep/07/fair-work-audit-finds-just-four-out-of-23-dominos-stores-comply-withworkplace-law [Accessed 28 Mar. 2019].
Fair Work Ombudsman. (2016). Domino's Compliance Activity Report. [online] Available at:
[Accessed 28
Mar. 2019].
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