Domino’s wage hit

AN increase in staff wages is set to eat into Domino’s revenue but the pizza maker has knocked back claims it will lead to more loss-making stores. Chief executive Don Meij said union claims that Domino’s has been saving $35 million to $50 million a year on wages by sticking to an expired 2009 enterprise agreement are false.

The Fair Work Commission last week ordered the old agreement be terminated by January 24 next year and for workers to be paid award penalty rates and casual loadings.

Mr Meij maintains that the increased wages of delivery drivers and store staff across the group’s network in Australia will account for two per cent or less of sales, however the company has not given a dollar figure.