Tuesday, March 2, 2010

How does a pay cut help in this economy

Domino's pizza drivers receive a pay cut that started on March 1, 2010, this was all due to two people who sued the Domino's corporation claiming they make less than minimum wadge. They also allege that Domino's violated state and federal law by failing to reimburse employees for expenses they incurred while delivering pizzas.

According to a copy of the lawsuit obtained by Pizza Marketplace, the plaintiffs allege that Domino's failed to adequately reimburse its drivers, instead paying a "per delivery" amount which was not sufficient to cover drivers' actual costs and resulted in drivers being paid less than minimum wage.

Delivery drivers generally are paid in a combination of an hourly wage, a mileage reimbursement and tips, which can add up to $10 an hour or more. Out of that, though, drivers pay for their own gasoline, car maintenance and insurance.

The mileage reimbursement, or "run money," paid to drivers varies from store to store, even within pizzeria brands. Reimbursements generally range from 75 cents to $1.25 per delivery, depending on the operation.

Well Domino's made a change in response to this lawsuit by changing the mileage reimbursement, now instead of receiving 75 cents to $1.25 per delivery they have raised the delivery charge to $1.90 and out of that drivers receive 23 cents per mile. This change is only good if the driver drive 5 miles or more for each delivery, but most deliveries around here are less than a mile meaning that the driver can only get 23 cents for most deliveries this is a cut between 52 cents and $1.02 per delivery. After one night of this new mileage reimbursement plan drivers in my area have seen $20 to $25 dollars less that what they made before the change. For those of you doing the math this comes out to $120 to $150 dollars less per week and thousands less per year. However the raise in the delivery charge now goes mostly to the company so they stand to make much more with this new change.

In this economy how can a pay cut help out, lets consider what the driver does they pay car insurance, pay for their gas, and own food while on a shift. The average tip is $1 but many people stiff the driver and fail to tip anything. How is it okay to order food over the phone sit comfortable in a warm house, dorm, apartment, or any other facility and have your order delivered to you by someone who has to brave the cold temperatures, and crappy weather conditions only to pay for the food and not tip the person who uses their own car, and gas to drive it to you.

This new change of drivers getting 23 cents per mile instead of 75 cents to a $1.25 per delivery needs to be changed back. These people work just as hard and just as many hours as they have for years and just now they are the victims of a pay cut in an economy where many people don't tip and gas prices are higher than they were in the past. How is it okay for the thousands of Domino's Pizza drivers to suffer because of two people who decided to sue the corporation. Let me know what you think about this change and keep in mind these drivers are not all students who just support themselves, they are husbands, fathers, homeowners, and people trying to make a LIVING so this cut is really going to hurt and while prices around us raise they get a pay cut.