Audit of fast-food outlets finds half exploit their workers

Date
    March 30, 2016
    Sydney Morning Herald

Almost half of all fast-food outlets audited by Australia's workplace watchdog are underpaying their staff, and the overwhelming majority violate payroll obligations.   :o

The Fair Work Ombudsman's nationwide investigation into the fast-food sector has alarmingly revealed just 53 per cent of 565 spot-checked employers have been paying their staff correctly.


The findings add to concerns about exploitation and illegal wages in the Australian hospitality industry, where a where a black economy of cash-in-hand jobs appears to be deep-rooted.


Sunny Liu was paid as little as $8 per hour.

In one recent case, the operators of popular Asian take-away store Bing Boy told authorities that wages of $10 an hour were "common" and $13 an hour was considered "good pay" for hospitality staff in Australia.   >:(


Bing Boy franchisees at the chain's Northland shopping centre and the CBD's Myer Emporium outlets were found to have underpaid two foreign workers almost $10,000 in just three months.

Acting Fair Work Ombudsman Michael Campbell said the troubling findings revealed in the latest audit underscored the need for the hospitality sector to remain a "priority" industry for the watchdog.

"Clearly, the take-away food sector, an industry comprised largely of small businesses, is grappling with the complexity of the industrial relations system," he said.

The audit of fast-food employers is the third and final "wave" of the agency's three-year hospitality industry campaign. The sweeping investigation unearthed similarly high levels of wage underpayments and industrial non-compliance across pubs, bars, taverns, hotels, restaurants, cafes and catering companies nationally.

Fair Work inspectors said the most common violations by fast-food employers were undercutting minimum hourly wages and denying overtime and weekend penalty rates.   >:(

"Inspectors found some employers providing flat rates of pay for all hours worked, with many advising they had adopted this practice to simplify their payroll processes," Mr Campbell said.

"In nearly one-third of cases, the hourly rate paid was not enough to cover hours attracting penalty rates and loadings, resulting in additional errors."

In October, a Fairfax Media investigation revealed hundreds of thousands of temporary foreign workers were being illegally exploited across the economy. It showed 80 per cent of foreign language job advertisements were offering wages below legal rates. Many of them were openly advertised as "black jobs".

Chinese student Sunny Liu is one of hundreds of thousands of temporary foreign workers vulnerable to exploitation and underpayment across the workforce.

As a hospitality worker, she was paid less than half the legal minimum wage to work at a restaurant in suburban Melbourne.

"The first ever job I got in Australia, I was paid about $8 an hour, and then it was raised to $10 an hour," she said.

"The minimum wage than was $16.50 ... but I couldn't find any better jobs. I know there are some students who work for $6 an hour."   :(

Council of Small Business Australia chief executive Peter Strong said hospitality employers often hired vulnerable people such as young workers or people from culturally and linguistically diverse backgrounds.

He said the high contravention rate highlighted the need to assist small businesses in understanding their obligations.

"Most small employers are not experts on workplace relations and are often more focused on having a good business with happy and well performing employees than their compliance obligations," he said.

"Business people in this sector should know there is help available, including from the Fair Work Ombudsman, who would rather inform and help businesses resolve issues cooperatively, than take them to court."

Bastards!

They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant over night

Its time wrote on Mar 30^th, 2016 at 12:07pm:

They know what they should be paying their employees

Exactly.

The occasional mistake or oversight can be understood, and forgiven: not knowing about the latest pay rises, or changes to legislation, etc.

However, these bastards are deliberately ripping off workers and they feel no shame or remorse whatsoever.

Ramp up the fines, and send some of these bastards to jail.

As the libs would put it - put those workers in jail for complaining.  Businesses are there to exploit, that's why they donate to the lib party. 

I'm actually surprised it's just half :-?

"Bing Boy franchisees at the chain's Northland shopping centre and the CBD's Myer Emporium outlets were found to have underpaid two foreign workers almost $10,000 in just three months."

Pricks.

Bing Boy

Forget Bing Boy.   The best crepe / wrap in town

http://www.roulegalette.com.au/crepe-and-galette-menu

:)

McExploitation?  First it was McJobs, then McMansions... now this?  What's next.. McGovernment?  McAcademia?  McJustice?   

**falls about laughing**

Libs can always legislate legal exploitation.  Won't be illegal then.
Aqua/long will go: find a better job/this is a stepping stone to another job/run your own business.

Comeback: everyone (and certainly above the age of 30) can't all be in middle management.  All jobs should provide people a living wage without having to be an american working poor.   
We already have people being contractors/business owners - those delivery drivers which are exploited. 
[url]http://www.theage.com.au/business/workplace-relations/deliveroo-and-foodora-accused-of-using-sham-contacts-for-bicycle-delivery-riders-20160329-gnsu7g.html[/url]
So no Aqua, there are plenty of businesses that seek to exploit and you advocate weakening the protections that barely cover the problems.

Swag will go: if businesses have to pay more then workers will lose jobs and can't make a profit

Comeback: A business based on exploitation shouldn't be running, just like sweat shops in other countries.  Yes we would have to pay more but that is the ethical way.  I know the libs don't - after all they accept lib corruption as the right way to do business rather than fight it.

Its time wrote on Mar 30^th, 2016 at 12:07pm:

They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant bankrupt over night

you oversimplify the situation. while you and others wank on endlessly about how penalty rates dont affect business at all here is the proof of exactly how penalty rates are not helping. if they are not paying award rates then obviously there is a profitability problem in the entire industry.

longweekend58 wrote on Mar 30^th, 2016 at 5:11pm:

Its time wrote on Mar 30th, 2016 at 12:07pm: They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant bankrupt over night you oversimplify the situation. while you and others wank on endlessly about how penalty rates dont affect business at all here is the proof of exactly how penalty rates are not helping. if they are not paying award rates then obviously there is a profitability problem in the entire industry.

I have heard some horseshit in my days Longy

Its time wrote on Mar 30^th, 2016 at 5:19pm:

longweekend58 wrote on Mar 30th, 2016 at 5:11pm: Its time wrote on Mar 30th, 2016 at 12:07pm: They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant bankrupt over night you oversimplify the situation. while you and others wank on endlessly about how penalty rates dont affect business at all here is the proof of exactly how penalty rates are not helping. if they are not paying award rates then obviously there is a profitability problem in the entire industry. I have heard some horseshit in my days Longy

mostly your own echo.  it still hasnt occured to you the reason why HALF in this industry are under-paying.  it's not so they owners can drive around in limos.

longweekend58 wrote on Mar 30^th, 2016 at 5:11pm:

Its time wrote on Mar 30th, 2016 at 12:07pm: They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant bankrupt over night you oversimplify the situation. while you and others wank on endlessly about how penalty rates dont affect business at all here is the proof of exactly how penalty rates are not helping. if they are not paying award rates then obviously there is a profitability problem in the entire industry.

that's why we've gone from one fast food / take away shop every 5 Km's to one every 50m. Because they're not profitable  :D :D :D

longweekend58 wrote on Mar 30^th, 2016 at 5:26pm:

Its time wrote on Mar 30th, 2016 at 5:19pm: longweekend58 wrote on Mar 30th, 2016 at 5:11pm: Its time wrote on Mar 30th, 2016 at 12:07pm: They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant bankrupt over night you oversimplify the situation. while you and others wank on endlessly about how penalty rates dont affect business at all here is the proof of exactly how penalty rates are not helping. if they are not paying award rates then obviously there is a profitability problem in the entire industry. I have heard some horseshit in my days Longy mostly your own echo.  it still hasnt occured to you the reason why HALF in this industry are under-paying.  it's not so they owners can drive around in limos.

You wouldn't know how many limos.  Just like how many limos those people have while they rent out "per rooms" and squeeze 9 or 10 people into a small apartment.

longweekend58 wrote on Mar 30^th, 2016 at 5:11pm:

Its time wrote on Mar 30th, 2016 at 12:07pm: They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant bankrupt over night you oversimplify the situation. while you and others wank on endlessly about how penalty rates dont affect business at all here is the proof of exactly how penalty rates are not helping. if they are not paying award rates then obviously there is a profitability problem in the entire industry.

Penalty rates haven't ADVERSELY affected business for many decades now... why is it that suddenly they are a brake on employment and productivity? Because we suddenly have to 'compete' on a level playing field that demands that everyone be paid $10 a day?

Award rate is what is required for the hours and times of day and of days....... do you have a problem with that?

What ARE you and your kind?  Capitalist socialists.... or would you prefer to be National Socialists....

Socialism only has valid application when it adheres to capitalists... everyone else will take the trickle down or die.... mostly die....

Many of you - here and in 'parliament' - have lost the plot severely, but then - that sort of loss is based on how many shares you have in the offshore pirates who are raping this country and others....

Cry me a river , pay the applicable award and o/t rates , its factored in to the price of the goods already. We know you unscrupulous employers are pocketing the difference so dont even try it on

Lets blame the workers - when the ceo gets paid 100 times what they do.

Sir Grappler Truth Teller OAM wrote on Mar 30^th, 2016 at 6:44pm:

longweekend58 wrote on Mar 30th, 2016 at 5:11pm: Its time wrote on Mar 30th, 2016 at 12:07pm: They know what they should be paying their employees , why are we still phucking around , crank up fines to six figures , businesses nationwide will become compliant bankrupt over night you oversimplify the situation. while you and others wank on endlessly about how penalty rates dont affect business at all here is the proof of exactly how penalty rates are not helping. if they are not paying award rates then obviously there is a profitability problem in the entire industry. Penalty rates haven't ADVERSELY affected business for many decades now... why is it that suddenly they are a brake on employment and productivity? Because we suddenly have to 'compete' on a level playing field that demands that everyone be paid $10 a day? Award rate is what is required for the hours and times of day and of days....... do you have a problem with that? What ARE you and your kind?  Capitalist socialists.... or would you prefer to be National Socialists.... Socialism only has valid application when it adheres to capitalists... everyone else will take the trickle down or die.... mostly die.... Many of you - here and in 'parliament' - have lost the plot severely, but then - that sort of loss is based on how many shares you have in the offshore pirates who are raping this country and others....

they have been underpaying staff for DECADES.  thats the point.