Trades Hall welcomes hospitality wages crackdown

Newcastle Trades Hall Council is welcoming a crackdown on dodgy hospitality businesses in the Hunter.

The Fair Work Ombudsman is auditing 1500 cafes, restaurants and catering businesses around Australia this week, including several in Newcastle.

The workplace watchdog receives dozens of complaints from Newcastle hospitality workers each year, putting it near the top of its industries of concern list.

The council's secretary Gary Kennedy says they also get at least one complaint a week from workers in the industry.

"It's been rife for a while," he said.

"There's been a couple of organised raids over the last couple of years by Fair Work and that seems to have helped a little bit.

"But it just seems to be endemic in this industry that cash in hand, students, overseas travellers, backpackers etcetera, seem to be able to pick up a job fairly easily.

"(They) are quite happy to take lesser wages, which then stops someone from getting a job, a proper job, here in Australia on proper wages.

Mr Kennedy says it is crucial unfair payment practices in the hospitality industry are wiped out soon.

He says some people think underpaying workers or paying cash-in-hand is acceptable.

"Not only in cafes and restaurants but also in pubs where this sort of nonsense has been going on for a long time," he said.

"And look, there are many, many, many employers who do the right thing and pay the correct wages and we take our hats off to them.

"But there are these fly-by-nighters, who just gouge workers and pocket the extra profits themselves, and that has to be stamped out."

Source: ABC News, 21 August 2013