Domino's Pizza chief Don Meij admitted the total cost of paying penalty rates was still unknown and could run even higher than Deutsche Bank's estimates.
"We have known about this for years and we have been working towards this date, there is no surprise in it at all.
He said Domino's could not start paying staff more ahead of an agreement because it would "set a precedent".
"It's very complicated ... you can't just pay out of award wages ahead of schedules because it unfortunately layers up and then we would have an inefficient agreement."
Mr Meij blamed recent exposes by Fairfax Media of underpayment at Coles and McDonald's for not being able to strike a deal with the union.
"We were very close to an agreement but with all the media around Coles and McDonald's and all the different organisations that have been in the media with the SDA, that just stalled our agreement," he said.
SciFi Chick wrote:All of that is true, but did you see, at the end, how much the low wages are? $18.99 an hour!
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