Felicity Sowerbutts, director of the Young Workers Centre union in Melbourne, said Subway franchises were infamous for working with outdated deals. She added that many workers with zombie agreements lack penalty interest and a number of rights such as overtime provisions or uniform allowances. Subway conducts proactive audits of franchisees` work documents and has strict internal employment control requirements for franchisees. Non-compliance with the law results in enforcement action, including the possible termination of a franchise agreement. They are called “zombie agreements” because they do not die if workers do not renegotiate them, and it is estimated that they currently affect thousands of Australian workers. In the first case, enterprise agreements containing expiry data are not automatically cancelled and remain continuous, unless they are terminated by the employee. “With some of these old WorkChoices agreements, since they were adopted before 2009, this means that so many young workers do not earn an hourly rate equivalent to the premium. It`s quite revolting,” she said. Non-compliance with the law results in enforcement action, including the possible termination of a franchise agreement. Breakfast also sought a response from Attorney General Christian Porter: The government is concerned about the reduction in the number of new and renewed enterprise agreements and will invite bids in 2020 in response to a discussion paper on the subject. Instead, she classified her written agreement in 2017 as “part-time” despite her irregular schedules, which allowed the company to pay her less. The fast food chain Subway is the youngest retailer targeted by a union because of so-called zombie enterprise agreements.
All enterprise agreements are approved by the Fair Work Commission and can act legally until a party terminates the agreement. And while employers must keep track of annual wage increases for the minimum wage made by the government, it only applies to the basic hourly rate in an enterprise agreement. It is estimated that tens of thousands of workers across the country – in a number of sectors – are employed under these zombie agreements, which may exist due to a flaw in the labour relations system. But Ms. Lindon later discovered that the original contract she signed was using an outdated enterprise agreement that allowed Subway to pay for it according to the wage rules that had come into effect 13 years earlier. Sowerbutts said many of the enterprise agreements would not pass the Better Off Overall Test (BOOT), which assesses payment terms, if they were negotiated today. Many enterprise agreements concluded during the WorkChoice era prior to the Fair Labour Act in 2009 are still in circulation because a legal loophole allows them to be used beyond their expiry date. . . . Grill `had been attacked late last year after employees spoke out against their low wages.
Everyone who works in a subway restaurant is entitled to a fair wage and a fair wage, and Subway has no tolerance for voluntary wage theft.