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Hospitality Workers Over-represented In Fair Work Action

Hospitality workers over-represented in Fair Work action

Hospitality workers are over-represented in Fair Work action, according to new figures released by the regulator.

Hospo workers make up 7.2 percent of the labour market, but account for 25 percent of action taken by Fair Work.

Hospitality workers over-represented

Fair Work Ombudsman Natalie James revealed the wage theft figures, describing them as “concerning”.

“Our data suggests that a disturbing culture of non-compliance has emerged in the restaurant, cafe, and fast food sector that is completely unacceptable.

“There is a growing intolerance in the community for underpayment of workers in this sector.”

Protesters outside Barry Cafe in Melbourne.

Public ‘naming and shaming’ campaigns

James’ comments follow a public shaming campaign waged against Barry Cafe in Melbourne, which underpaid its workers.

It also follows widespread media coverage of former burger bar operator Todd Buzza, recently penalised more than $300,000 for ripping off employees.

“We do not step back from informing the community of deliberate and shameful exploitation of workers,” Mr James said.

Fair Work also revealed the hospitality industry accounted for 29 percent of its legal actions in 2015-16 and 2016-17.

“It is deplorable that nearly one third of the most serious cases that end up in court involve this one sector,” Ms James said.

Todd Buzza’s wage theft case widely reported.

Tougher penalties

The penalties for serious breaches of workplace laws have recently been increased.

Companies face a maximum penalty of $630,000 per contravention, while individuals face maximum penalty for $126,000 per contravention.

The maximum penalties for failing to keep accurate records or issue pay slips have doubled to $63,000 for a company and $12,600 for an individual.

In addition, employers who provide false or misleading records can now face prosecution in criminal courts.

Despite these tougher penalties, James concedes prosecutions alone will not solve the problem of wage theft.

“Unless industry leaders take action to overhaul a culture where underpayment of wages has become normalised, this sector and its individual businesses will increasingly attract the attention of law makers and find itself in the middle of media storms,” she said.

Fair Work Ombudsman Natalie James.

Criminal penalties

Miles Heffernan from Industrial Relations Claims said there is only so much Fair Work can do.

“There’s 800 thousand businesses in Australia, and Fair Work inspectors can only audit so many,” he said.

“And prosecuting a couple of dozen businesses a year is simply not good enough.

“Despite all the talk of hefty penalties, wage theft is rife.

“It’s therefore time to make wage theft a crime and it’s time to start locking up greedy bosses who steal from their workers.”


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