Domino’s issued a statement this afternoon noting that it was currently in negotiations with the SDA Trade Union on a new enterprise agreement and has been for the past 12 months. “The Fair Work Commission recently nullified Coles’ enterprise agreement on the basis that it did not include sufficient penalty rates to leave all employees better off overall than the relevant award. This prompted us to review enterprise agreements across the consumer space which highlighted Domino’s as the business most susceptible to higher wage costs. Franchisee profitability has been a key element of Domino’s success. If it fell sharply, franchisee appetite to invest in the new stores, refurbishments, technology and marketing which have underpinned strong sales growth in the past could be reduced and value range pizzas may no longer be a viable way to drive volumes. In fiscal 2016, Domino’s had 606 franchised stores across Australia and New Zealand and 64 corporate owned stores. Its Australia/New Zealand network accounts for about one-third of its more than 1,900 pizza stores around the globe. Last financial year, Australasia accounted for 56 per cent of Domino’s $127.8 million in pre-tax earnings, while pre-tax margins at its Australian and New Zealand outlets are three times stronger than margins sourced from Domino’s stores in Europe and Japan. The Deutsche Bank report argues that if Domino’s were forced to pay penalty rates, in line with the award, it would represent a significant cost impost because the hours of operation generally extend into times which attract penalty rates. It would result in a 14 per cent increase in wage expenses for the company — but Domino’s wouldn’t be alone in facing a higher wages bill. SECTION 14 CORPORATE GOVERNANCE Roles of the board, management and company secretary Board: The Board is responsible for guiding and monitoring DPE Limited on behalf of shareholders. While at all times the Board retains full responsibility, in discharging its stewardship it makes use of committees. Specialist committees can focus on a responsibility and
provide informed feedback to the Board. The Board seeks to identify the expectations of shareholders, as well as other regulatory obligations. In addition, the Board is also responsible for identifying areas of significant business risk and ensuring arrangements are in place to adequately manage those risks. The Board is responsible, and primarily accountable to the shareholders, for the effective Corporate Governance of the Company. The Board is responsible for directing management to optimise the Company’s performance and increase shareholder wealth by: providing leadership and strategic direction; overseeing management’s implementation of the Company’s strategic objectives; approving the annual operating budget; appointing the chair a deputy chair (or a senior independent director); appointing and appraising, and where necessary, replacing the Managing Director/ Group Chief Executive Officer and other senior executives; Those matters not specifically reserved for the Board are the responsibility of management, but are subject to oversight by the Board. The Corporate Governance of the Company is carried out
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- One '16
- Business, The American, pizza hut, Domino, Pizza delivery, Domino's Pizza