Addressing Labor Exploitation Concerns in Australian Businesses: Domino’s Pizza assignment's Commitment to Ethical Employment Practices
Question
Task: How is Domino’s Pizza assignment addressing labor exploitation concerns in Australia, and what measures are they implementing to ensure fair and legal employment practices?
Answer
Name and Background of Your Client
Domino’s Pizza assignment was founded in 1960 in Ypsilanti, Michigan, USA and the brand has gradually spread across the globe. Domino’s established its operations in Australia at Springwood, Queensland, in 1983 and has since gradually spread its operations across Australia. As of 2016, Domino’s Pizza assignment had 571 Stores spread across Australia making it one of the largest MNC in the country (Llanas 2014).
Domino’s Pizza assignment has built its reputation over the years and is deeply concerned regarding the recent reports of International student and migrants being exploited by Australia businesses which have been identified to exploit international student and migrants. Having built a positive brands image over the past 77 years Dominos condemns this acts and would like to assist towards eliminating this problem.
We express our commitment towards abiding my legal labour laws and human rights concerns and will offer assistant in all possible ways to fight labour exploitation by businesses like 7-Eleven. Transparency has always been a priority Domino’s Pizza assignment has emphasized on and would like to once again demonstrate our operations transparency by expressing our resentment of labour exploitation publicly. All employees are hired through legal channels and provided with the freedom to raise their concerns which we use to improve our performance, policies and approaches so as to deliver the best working environment (Mössler 2003).
The issue(s) you are Addressing
Dominoes has managed to build a positive brand image over the past 70+ years and today has over 13,800 stores across the globe. Dominoes registered a turnover of US$ 2.47 billion in 2016 with a profit US$ 214.7 million in the same year. Dominos has over 571 Stores in Australia alone which generated AUD 588.7 million between 2013 and 2014 and a profit of AUD 45.3 million. The brand has 26,000 employees in Australia making Dominos among the largest employers in the country (Syed 2016).
This also makes the brand a susceptible target for labour related concerns such as the underpayment of employees and exploitation by 7-Eleven. This makes it important for Domino’s Pizza assignment to intervene in this matter and make a public statement.
The scale of the Matter
2016 would see Australia registered an all-time high with regard to international student admissions from other countries with statistics places international student admissions close to 500,000 in 2016. 90% of the international students seek employment from the local communities, businesses, and industries but they are limited to only working for 20 hours per week. Many of the students want to utilize their time in Australia to earn money which results in them accepting unregistered and illegal employment opportunities from businesses like 7-Eleven so as to earn more money and this is the main reason the employers exploit the student.
With a working cap limited to 20 hours per week, students and illegal migrants are forced to take up additional work from businesses like 7-Eleven for half the pay rates (Kneebone & Debeljak 2012, p. 19). A large number of international students and migrants also results in labour market becoming over saturated who leads to a limited number of available job opportunities which further placing pressure on the international students and migrants. 7-Eleven mainly offered illegal employment opportunities for back office operations which prevent the exploited employees raising alarm of exploitation to legal authorities.
How Dominos protects its staff
Dominos has developed universal labour employment rights program and guidelines which are utilized while hiring all Domino’s staff. Unlike 7-Eleven, Dominos does not hire contractual or temporary workers and all employees are legally registered and all paper work completed before any staff joins the company (Vyuptakesh 2013, p. 463).
International student who express an interest towards working with Dominos are paid the standards pay scales and only work for the legally authorized number of hours as prescribed on their student permits. They are also expected to perform at the same level as other employees and no discretion or favour is offered to any employee over the other.
Why come forwards and present facts
The recent media coverage related to labour exploitation concerns linked to 7-Eleven has also raised the Australian public’s interest and many have begun asking questions. Many are also questioning major brands like Domino’s Pizza assignment regarding their labour hiring norms. To make a stand and express Dominos concern and resentment towards labour exploitation practices, Dominos has filed this report on the brand's labour hiring process and will also make suggestions on how to curb this problem (Calkins 2012).
Dominos understand that the brand has protected all labour directly hired and working for Dominos but we also understand illegal hiring and labour exploitation may be happening among Dominos supply contractors. While this is not directly controlled by Dominos, the brand will set up a task force to investigate the raw materials supplier and contractors to determine their labour hiring processes and operations. Any contractor or supplier found hiring illegally or exploiting labour will be a strict warning and/or their contract cancelled. Domino’s Pizza assignment will not be associated with any business, contractor or individual that is hiring labour illegally or exploits skilled professionals, labour or students seeking employment.
The Historical Background of the Issue
Australia, New Zealand, Canada, UK and the USA among several other developed nations have seen an increasing number of international students in recent years. Many of the students come to Australia to perform their further studies but also want to utilize their spare time to earn some extra pocket money and many are willing to work below the standard and legal pay scales and wages (Shelley 2013). This is due to many having come from developing and under developed nations which pay meagre wages making even the low pay rate look attractive.
The problem develops when they begin indulging in illegal employment which forces many to be exploited under threat of being reported to the immigration department and having their student permits cancelled and being deported from the nation. Every business wants to maximize profits and labour tends to be very expensive making it an attractive option to hire international student and migrants for half the pay scale under illegal terms. To retain their labour and ensure the skilled professionals continue working for half the pay scale the business exploit their vulnerabilities by threatening to expose their illegal employment to the authorities resulting in many being forced to remain under illegal employment (Forward & Frazier 1998).
Proposed Solution to the Labour Exploitation Concern
The labour exploitation scandal facing 7-Eleven is just one example of labour being exploited by Australian based businesses and industries? But rather than focus only on 7-Eleven scandal it’s important for the government, public, businesses, and industry to understand the cause of the problem so as to propose and implement suitable solutions (Scott 2017). First, the reason linked to Australia businesses indulging in labour exploitation are linked to them attempting to save money and secure employee commitment towards working for the business.
Every business wants to save money and the businesses will pick up any opportunities which help them save money and cut costs. Labour security is another major concern since high employee turnover rates affect productivity, performance and eventually the businesses profits. This makes it important for the government and businesses to review the laws and current limitations international student and migrants are facing and revise the laws to eliminate the handicap facing the international students and migrants.
The main factors linked to international student and migrant exploitation is related to the cap imposed international student and migrant working hours in Australia. Limiting students to only 20 hours a week forces many to seek additional employment illegally and once involved in illegal employment the employment their employers exploit this opportunity to offer low wages as well as use this information to blackmail the students (Allain 2012).
The black mailing strategy is specifically aimed at ensuring the illegal employees continue working for the businesses indefinitely. This ensures the business always has cheap employees and the students and migrants are forced to work due to the fear of being deported.
With the problem rampant across Australia today the government should reconsider revising the existing employment laws with relation to international students and migrants. Abolishing the weekly working hour limitations would automatically free any employees who are being exploited on the basis of illegal employment (Costello & Freedland 2014).
Dominos has always emphasized on delivering a fair, comfortable and legal working environment and conditions for its staff and will not indulge in participating in such practices. Dominoes Australia there stands with the government and local authorities of Australia to fight this scourge. It is the responsibility of all businesses in Australia to fight against this problem and promote delivering a fair, legal and comfortable working environment for every skilled professional in Australia today without exploiting their weaknesses.
Bibliography
Allain, J 2012, Slavery in International Law: Of Human Exploitation and Trafficking, Martinus Nijhoff Publishers.
Calkins, T 2012, Defending Your Brand: How Smart Companies Use Defensive Strategy to Deal with Competitive Attacks, Macmillan, New York.
Costello, C & Freedland, M 2014, Migrants at Work: Immigration and Vulnerability in Labour Law, Oxford University Press, Oxford.
Forward, S & Frazier, D 1998, Emotional Blackmail: When the People in Your Life Use Fear, Obligation, and Guilt to Manipulate You, HarperCollins.
Kneebone, S & Debeljak, J 2012, Transnational Crime and Human Rights: Responses to Human Trafficking in the Greater Mekong Subregion, Routledge, Oxon.
Llanas, S 2014, Tom Monaghan: Domino’s Pizza assignment Innovator, ABDO, Minnesota.
Mössler, K 2003, The Pros and Cons of International Staffing Policies, GRIN Verlag.
Scott, S 2017, Labour Exploitation and Work-based Harm, Policy Press, Briston.
Shelley, T 2013, Exploited: Migrant Labour in the New Global Economy, Zed Books Ltd, New York.
Syed, I 2016, SWOT analysis and operation management decisions of Domino’s Pizza assignment, GRIN Verlag.
Vyuptakesh, S 2013, International Business: Concept, Environment and Strategy, 3rd edn, Pearson Education India.
