Starting at the end of March delivery drivers in the Dallas area will receive $4.25/hour(when out on delivery), a three dollar pay cut. On top of this, drivers only receive $.90 of the $2.50 delivery fee charged to customers. If nothing else, I think Pizza Hut needs to be held accountable for the lost $1.60. Either stop charging the customer or give it to the drivers.
I don't know anything about business law, but it seems to me that when a company charges someone for a service provided they need to provide the service. Ergo, the driver is responsible for his/her own vehicle, and is for all intents and purposes an independent contractor while on the road. The driver has their own insurance, pays for any repair
bills, as well as gas. While the $0.90 of the $2.50 ostensibly goes towards gas and car repairs, what happens to the other $1.60?
If the $1.60 went to pay the drivers wage (which I think is fraudulent as the driver also does other non-driving work while at pizza hut store), does the $3.00 pay cut change things? As I understand it, there will still be a $2.50 delivery charge, drivers will still get a fraction of that and receive around 40% less pay. Seems like a double rip-off to me.
While $1.60 does not sound like much, over the course of a day, week, month it turns out to be quite a large sum. If a pizza hut averages 200 orders for a Friday night for example and 150 of those are deliveries (I think 75% delivery to total orders is a fair estimate) that's $240 or about 5% of their daily profits (assuming a projected $3,500 worth of business for that day). These numbers are speculative but very reasonable.