Feuding pub barons face staff underpayment claims
Billionaire hotelier Arthur Laundy and his estranged former business partner Fraser Short are facing claims that hundreds of hospitality workers across their jointly operated Sydney venues were underpaid by hundreds of thousands of dollars, with affected staff alleging they have waited three years and seen nothing.
Leaked audit documents reveal that staff at venues under The Sydney Collective group — including the Watsons Bay Hotel, Northies Cronulla and The Mona Vale Hotel — had their pay scrutinised in 2023. The findings allege 86 front-of-house workers were collectively owed $764,000, with individual claims reaching as high as $30,000, stemming from timesheet inconsistencies, incorrect overtime logging and below-award hourly rates.
The revelations surface as Laundy prepares to finalise a $56 million acquisition of Nine's radio network — including 2GB, 3AW, 4BC and 6PR — rebranding it as Tapt Media from April 30.
Former Northies gaming bar manager Danielle Stares, who the audit allegedly shows was owed $11,000 after her salary sat 18 per cent below the relevant award threshold, connected the dots bluntly. "If they can afford to buy radio stations, they can afford to pay employees back," she said.
Former Watsons Bay Hotel manager Aline Castor, allegedly owed $28,676 after being paid below award rate for three years, said her concerns about unpaid overtime were dismissed by management. "I gave everything to ensure excellent service, but recognition never came," she said.
Laundy, estimated to be worth $1.75 billion, told the SMH he was blindsided by the audit and maintained that Short had been responsible for day-to-day venue management. "I paid him a management fee," the 84-year-old said. He nonetheless pledged to make workers whole. "If I owe money to people, I'll pay people," he said.
His lawyers stressed the audit covered a period before Laundy Hotels assumed operational control, describing it as "a preliminary, qualified and therefore unreliable document."
Short, who sold his remaining stake in The Sydney Collective to Laundy in a $150 million deal in 2023 and has since withdrawn from hospitality, denied any outstanding liability. "When I moved on as a part-owner from these and other businesses, I can assure you that all liabilities were brought up to date, including for all staff," he said.
Laundy Hotels confirmed it had previously co-operated with a Fair Work Ombudsman investigation involving a separate group of kitchen staff underpayments, saying back payments were made and the matter was closed. The group has invited any additional claimants to come forward directly.
The Sydney Collective was placed into liquidation in 2024, with debts of $5.8 million — including $1 million owed to the tax office — and findings that the group had likely been trading while insolvent from July 2022.
Jonathan Jackson, 20th April 2026
