FWC tackles wage complexities in GYG, Godfreys

Mexican fast-food chain Guzman Y Gomez (GYG) has failed in its bid to introduce a new enterprise agreement following a decision by the Fair Work Commission to terminate its current document earlier this year.

The chain hoped to introduce a new agreement as of November 15, but after criticism from Fair Work Commissioner Donna McKenna, opted to withdraw the application – leaving it’s workers to be paid according to the Fast Food Award.

McKenna was not satisfied that GYG had explained the details of the proposed agreement to employees and franchisees, which she believed had the potential to reduce pay for some workers.

“In light of comments made by the Commission about the terms of the enterprise agreement, last week GYG made the decision to withdraw the enterprise agreement application,” a spokesperson for GYG said.

“We did this because it was apparent to us that it would not be approved. GYG’s values are at our core, we wear them with pride and would never do anything to intentionally or unintentionally disadvantage our crew or our franchisees.”

Additionally, the Fair Work Commission opted to terminate vacuum retailer Godfreys’ enterprise agreement last week, following reports that workers had not received a pay-rise in over seven years.

The Shop, Distributive and Allied Employees Association (SDA) told the Commission that wage rates under the Godfreys agreement ranged from $602.68 for level 1 employees to $686 for level 4 employees, far below the award rates of $763.20 and $842.30 respectively.

Additionally, it was noted that in some cases employees were paid casual loading rates as little as 15 per cent, compared to the award standard of 25 per cent.

Godfreys opposed the SDA’s submission on the basis that employees could “earn remuneration that exceeds the wages and allowances under the Award,” however the Commission found that the average weekly commission was $85, falling short of the amount that would be paid under the award and prompting the agreements termination.

The decision follows a lengthy dispute between Godfreys and the SDA, which filed an application to terminate the 2009 agreement in November 2017.

Reporting: Nick Hall

This is an edited version of a story that originally appeared on sister-site Inside Franchise Business.

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