GM Gerry Gerrard sheds light on the dated award debacle.
Since Fairfax Media’s January report on Bakers Delight’s dated award scandal, GM Gerry Gerrard talks to Inside Franchise Business about why the 2006 Collective Agreement was still in place.
“There are many elements to it,” he says.
He explains that if employees began working for Bakers Delight when the 2006 award was in place, it would continue to be rolled over unless an application to transition to the General Retail Industry Award 2010 is made to FairWork by any current employee. He says that this is the FairWork process and applies across the retail space, not just to Bakers Delight.
“The Modern Award has no expiry date. It’s not exclusive to Bakers Delight, nor is it exclusive to franchising.
“If the community have a problem with the system, they need to look at the government to correct the system the government created.
“But underpayment is illegal and we’re on that like a shot,” he adds.
In response to Fairfax Media’s January findings, Gerrard says the first application for the new award was made by the 15 year old worker in May 2016, who was by then no longer an employee at a company-owned Bakers Delight. As she had left the system, her application could no longer be made. However, he insists that base salary continued to increase year on year in line with the Modern Award.
Gerrard says every affected company-owned store has been told the change to the modern award has now been made anyway, with effect from February.
And franchised stores?
“We’ve recommended franchisees to change over, but we cannot force them to change to what’s the new award. It’s ultimately up to the franchisee,” he continues.
“But their staff can still make an application to FairWork.”
New franchisees will automatically hire staff on the Modern Award.