Queensland demands tougher penalties for wage theft
The Queensland tourism sector is demanding greater penalties and tougher legislation over widespread wage theft.
The tourism industry demand comes in the wake of an investigation by the Fair Work Ombudsman of restaurant businesses in Fortitude Valley. That investigation found that 60 per cent of eateries in the area were non-compliant with their workplace obligations.
Major chains exposed for underpaying workers include 7-Eleven, Caltex, Domino’s, Pizza Hut and Red Rooster.
It also coincides with a Queensland parliamentary inquiry receiving submissions claiming that the franchise system is being used by major brands to distance themselves from the payment of workers.
According to one union submission, the loss of wages could be as much as $300 million. Meanwhile, the nurses union claims it has so far recovered $9 million in underpayment since 2012.
Queensland Tourism Industry Council has put in a submission saying the recent proliferation of wage theft was occurring across a diverse spread of occupations and business models with wage theft more common among low-wage, low-skill jobs in industries such as retail, hospitality and horticulture.
It said “cash-in-hand payments have become a part of the business model’’, for a minority of small to medium businesses, often through ignorance or a lack of time
That parliamentary inquiry will have hearings this week and move around the state.
Committee chair Leanne Linard said some of the evidence had come as no surprise.
“We will hear a plethora of (bad examples),’’ Ms Linard told the Courier Mail.
“It’s good that employer groups are coming forward because when businesses do the wrong thing it makes it harder for those doing the right thing.’’
Australian Industry Group Queensland head Shane Rodgers said there business people were risking being criminalised for mathematical errors.
“This is taking us to very dangerous ground. The vast majority of employers devote considerable resources to navigating the often-complex remuneration maze to ensure their people are paid correctly,’’ Mr Rodgers told the Courier Mail.
Leon Gettler - 15 August 2018
