Take-away chain franchisees claim $13 an hour is 'good pay' in Melbourne

Date
    March 11, 2016
    The Age

A popular Asian take-away store has claimed wages of $10 an hour are "common" while $13 is "good pay" for hospitality staff in Australia.      

The operators of two Melbourne outlets of Bing Boy – an Asian street food chain with dozens of stores Australia-wide – made the comments after the workplace watchdog uncovered exploitation of their staff.



Investigations by the Fair Work Ombudsman found Taiwanese staff, one of whom was a backpacker on the 417 working-holiday visa, were paid illegal flat-rate wages of about $13 an hour while working at Bing Boy, and received no overtime or weekend penalty rates. 

The case is the latest to raise concern about exploitation and underpayment in Australia's hospitality industry – including restaurants, cafes, food courts and fast-food stores – where a "black economy" of cash-in-hand jobs appears to be a feature.


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

The employees were illegally classed as trainees but were never registered in formal training agreements.

In a recorded interview, the franchisees told inspectors that wages of $10 an hour were common across Melbourne's Chinese restaurants, while $13 an hour was considered "good pay" that most employees would be happy to earn.   

Fair Work Ombudsman Natalie James said the agency had taken enforcement action against the two franchisees in a bid to encourage behavioural change and future compliance with workplace law.

"Employers simply cannot undercut the minimum lawful entitlements of their employees based on what they think the job may be worth, what the employee is happy to accept or what the job may pay in the employer's or employee's country of origin," Ms James said.

"Minimum rates apply to everyone – including visa-holders – and they are not negotiable," she said.

The franchisees agreed to sign an "enforceable undertaking", seen by Fairfax Media, in which they agree to new systems to undertake workplace relations training, engage external professionals to audit their practices, and turn over time sheets and wage records to the ombudsman for the next pay period.