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Delivering

Pizza
A dilemma of employee
protection and
discrimination

What makes
human resources
important?

1. All firms need them to


create products

transfor
m
Land and other
forms of capital

Entrepreneu
rship and
labor

2. It takes humans to build and


compose a firm and an organization
Board of
directors

President

V.P. for
research

V.P. for
Manufactuing

V.P. for
Marketing

Plant
Manager

Plant
Manager

Plant
Manager

Foreman

Foreman

Foreman

Foreman

Foreman

Foreman

3. They can make or break


From
your company

They should be given priority


because they are investments that
when trained utilized well provide
great returns.
In fact Bill Marriott would go as far
as saying that his employees
transformed his family root beer
stand to a $14B hotel industry giant
take good care of your people,
theyll take good care of the
customer and the customer will
come back

To

4. It is an investors best
protection against inflation

Both to the individual and the


firm,
human
resources
will
always demand a fair price as to
the amount of work put into
action and the firm will usually
always take into account the
quality of the product in setting
the price(including the work put
into place) for a high quality
product produced by high quality
labor
will
almost
always
command a high profit

The companies
obligation to
employees
Workers rights

Rights of a worker
INTERNATIONAL CONVENTION ON ECONOMIC,
SOCIAL ANDCULTURAL RIGHTS
1.The right to "fair wages and equal remuneration
for work of equal value"(Art. 7);
2.The right to "safe and healthy working
conditions"(id.);
3.The right to "equal opportunity" for job promotion
(id.);
4.The right to "rest, leisure and reasonable
limitation of working hours and periodic holidays
with pay"(id.);
5.The right "to form xxx and join the trade unions of
his choice"(Art. 8);
6.The "right of trade unions to function freely"(id.);
7.The "right to strike"(id.);and
8.The "right xxx to social security (and) social
insurance"(Art. 9).

The right to "safe and healthy


working conditions"
What

does safety and health in the workplace


mean?

Safety refers to the physical or environmental


conditions of work which comply with prescribed
occupational safety and health standards.
Healthy denotes promoting a sound state of the
body and mind of the workers that enables the
worker that enables the workers or employee to
perform the job normally and without any
detriment to his own mind and body

The right to "safe and healthy


working conditions"
The

right to safe and healthful


conditions by work means that the
worker shall be assured of effective
protection against the danger of injury,
sickness or death through safe,
healthful and fair working conditions

The right to "fair wages and equal


remuneration for work of equal value"
Issues:
Wages

in developing nations are too low when


compare to the developed countries
Wages in developing nations are too low
relative to what the company can afford or
revenues that the company makes.
Wages in developing nations are too low
relative to what their family needs
(employees)[living wage]

The right to "fair wages and equal


remuneration for work of equal value"
Factors in determining wages and salaries:
The going wage in the industry and the area
Firms capabilities
Nature of the job
Minimum Wage Laws
Relations to other salaries
Fairness of wage negotiations
Local cost of living

The right to "fair wages and equal


remuneration for work of equal value"
Replies (Company):
It is not clear that wages in one country be used
as the basis for setting wages in other
countries.
It is not clear that the retail price of a product
should serve as the basis.
It is important to take into account the number
of wage earners in the households of workers of
a given nation.

The Case
Delivering Pizza

Delivering Pizza

One night in March 1996


Bill Fobbs called Dominos
and asked to have a
pepperoni pizza delivered
to his family. Dominos
refused to deliver the
pizza to his home and
said he would have to
come to the outlet to pick
up his pizza.
We cant deliver

Delivering Pizza

The Fobbs who are black


live in a high crime,
predominantly
black
neighborhood
in
San
Francisco, California. Mr.
Fobbss family complained
that the refusal to deliver
was an act of blatant
racism, and according to
his grandmother It can
only be because we are
black people.

Delivering Pizza

Wally Wilcox, the owner


of the Dominos outlet,
however, asserted that
the issue was one of
employee safety since
several
pizza-delivery
people
had
been
murdered while making
deliveries, and pizza
delivery people were
often robbed, assaulted,
and killed.

Thavisha Lakindu Peiris

Delivering Pizza

Because
red
marked
neighborhoods are almost
always
minority
neigborhoods, the American
Civil Liberties union criticized
this pizza delivery practice as
discriminatory. The California
restaurant
association
asserted that the practice
was part of the employers
legal and moral duty to
eliminate workplace hazards.

Delivering Pizza

Dominos and most other


large pizza chains-including
Pizza Hut and Little Caesarsused computerized systems
that designate neighborhoods
as green, yellow, or red.
Customers in green get pizzas
delivered to their door; in
yellow
neighborhoods,
customers come out to the
street and get their pizza
from the delivery car; red
neighborhoods
are
those
considered too dangerous for
any delivery at all, and
customers in these areas
must drive to the restaurant
for their pizzas.

In your view, is the Dominos


policy morally justified?
As

much as the companys policy may be perceived


to be a discriminating act against black and other
races, we believe that Dominos policy is morally
justified given that each employee has the right to
safe and healthy working conditions and they must
ensure their employees protection. We believe
that, it would have been in Dominos best interest
to deliver to them given that this would help
increase profit but by choosing to sacrifice profit
increases for their employees we believe that
Dominos is actually doing the right thing.

Could Dominos, Pizza Hut, and


Little Caesars adopt a different
kind of policy to protect their
drivers? Should they?

We believe that they could adopt a different policy. In


fact Dominos is already piecing an idea with a
domicopter which could deliver pizza without much
contact with the delivery boy who is controlling it.
However, we believe their current policy would have
been most practical given that it is less costly and it
eliminates most of the danger to the delivery drivers
associated with red areas. Instead of changing their
policy, they should continue with it while expanding
with new outlets built in non-delivery zones equipped
with security guards and other security measures.

San Francisco subsequently passed a law prohibiting


the policy of refusing to deliver pizzas to some
neighborhoods, on the grounds that in practice the
policy discriminates against minorities. Do you
agree?
We

believe that the safety of the employees


should take precedence over the consumers
desire to have pizza delivered to their homes
which is why we beg to disagree. Furthermore,
the way areas are classified is based on danger
and not on ethnicity nor demography which is
also why we believe it should not be
considered discriminatory against minorities. In
fact, data would indicate that minority areas
are indeed high crime areas.

Rank

25: Chicago, IL (S Indiana Ave / E 60th St)


Crime Rate(per 1,000): 65.77
Chances of Becoming a Victim Here(in one year): 1 in 15
Rank 24: Tulsa, OK (E Apache St / N Quaker Ave)
Violent Crime Rate(per 1,000): 66.88
Chances of Becoming a Victim Here(in one year): 1 in 15
Rank 23: Memphis, TN (Saint Paul Ave / Walnut St)
Violent Crime Rate(per 1,000): 67.26
Chances of Becoming a Victim Here(in one year): 1 in 15
Rank 22: St. Louis, MO (Cass Ave / N 9th St)
Violent Crime Rate(per 1,000): 67.75
Chances of Becoming a Victim Here(in one year): 1 in 15
Rank 21: West Memphis, AR (E Broadway St / Stuart Ave)
Violent Crime Rate(per 1,000): 68.9
Chances of Becoming a Victim Here(in one year): 1 in 15
Rank 20: Indianapolis, IN (North Indianapolis)
Violent Crime Rate(per 1,000): 69.02
Chances of Becoming a Victim Here(in one year): 1 in 14
Rank 19: Flint, MI (Chambers St / Stonegate Dr)
Violent Crime Rate(per 1,000): 70.05
Chances of Becoming a Victim Here(in one year): 1 in 14
Rank 18: Nashville, TN (8th Ave S / Wedgewood Ave)
Violent Crime Rate(per 1,000): 70.59
Chances of Becoming a Victim Here: (in one year): 1 in 14
Rank 17: Indianapolis, IN (N Meridian St / E 34th St)
Violent Crime Rate(per 1,000): 72.71
Chances of Becoming a Victim Here(in one year): 1 in 14
Rank 16: Chicago, IL (S Ashland Ave / W 76th St)
Violent Crime Rate(per 1,000): 73.05
Chances of Becoming a Victim Here (in one year): 1 in 14
Rank 15: Houston, TX (Sauer St / Mcgowen St)
Violent Crime Rate(per 1,000): 75.89
Chances of Becoming a Victim Here(in one year): 1 in 13
Rank 14: Rockford, IL (Kishwaukee St / Grove St)
Violent

Violent

Crime Rate(per 1,000): 77.6


of Becoming a Victim Here(in one year): 1 in 13
Rank 13: Chicago, IL (S Homan Ave / W Roosevelt Rd)
Violent Crime Rate: (per 1,000): 80.17
Chances of Becoming a Victim Here(in one year): 1 in 12
Rank 12: St. Louis, MO (Delmar Blvd / N Euclid Ave)
Violent Crime Rate(per 1,000): 82.76
Chances of Becoming a Victim Here (in one year): 1 in 12
Rank 11: Memphis, TN (E Eh Crump Blvd / S 4th St)
Violent Crime Rate: (per 1,000): 82.91
Chances of Becoming a Victim Here(in one year): 1 in 12
Rank 10: Saginaw, MI (E Holland Ave / E Genesee Ave)
Violent Crime Rate(per 1,000): 85.64
Chances of Becoming a Victim Here(in one year): 1 in 12
Rank 9: Atlanta, GA (Hopkins St SE / Adair Ave SE)
Violent Crime Rate: (per 1,000): 86.14
Chances of Becoming a Victim Here(in one year): 1 in 12
Rank 8: Greenville, SC (Woodside)
Violent Crime Rate(per 1,000): 86.38
Chances of Becoming a Victim Here(in one year): 1 in 12
Rank 7: Detroit, MI (Wyoming St / Orangelawn St)
Violent Crime Rate(per 1,000): 90.82
Chances of Becoming a Victim Here(in one year): 1 in 11
Rank 6: Houston, TX (Scott St / Wilmington St)
Violent Crime Rate(per 1,000): 91.27
Chances of Becoming a Victim Here(in one year): 1 in 11
Rank 5: Spartanburg, SC (Washington Heights)
Violent Crime Rate(per 1,000): 96.55
Chances of Becoming a Victim Here(in one year): 1 in 10
Rank 4: Chicago, IL (S Halsted St / W 77th St)
Violent Crime Rate(per 1,000): 116.56
Chances of Becoming a Victim Here(in one year): 1 in 9
Rank 3: Detroit, MI (Gratiot Ave / Rosemary)
Violent Crime Rate(per 1,000): 123.93
Chances of Becoming a Victim Here (in one year): 1 in 8
Rank 2: Detroit, MI (Mack Ave / Helen St)
Violent Crime Rate(per 1,000): 145.29
Chances of Becoming a Victim Here(in one year): 1 in 7
Rank 1: Detroit, MI (W Chicago / Livernois Ave)
Violent Crime Rate(per 1,000): 149.48
Chances of Becoming a Victim Here(in one year): 1 in 7
Chances