Read The Times Australia

Daily Bulletin

All these celebrity restaurant wage-theft scandals point to an industry norm

  • Written by: Richard Robinson, Research Fellow/Hospitality Management, The University of Queensland

The latest celebrity-chef-linked wage-theft scandal, with the high-end restaurant Dinner by Heston Blumenthal in Melbourne allegedly underpaying its staff by A$4 million, is the tip of the iceberg for wage exploitation in the hospitality industry.

Blumenthal joins a line of celebrity chefs linked to cases of million-dollar wage theft.

There’s former Masterchef judge George Calombaris’s company underpaying staff by $7.8 million. There’s Shannon Bennett’s Vue de monde restaurant accused of forcing staff to work up to 30 hours of unpaid overtime each week. There’s Neil Perry’s Rockpool Dining Group, accused of “audacious” time-sheet tampering potentially worth up to $10 million in unpaid overtime.

Read more: Shocking yet not surprising: wage theft has become a culturally accepted part of business

While the Rockpool claim has yet to be adjudicated by Australia’s Fair Work Ombudsman, it did agree in October 2018 to back-pay staff $1.6 million. Perry told Fairfax Media Rockpool had made “a few changes” to better comply with the law. “It’s always hard in restaurants,” he said, “but I believe we would be one of very few, if any, that are complying with it currently.”

All these celebrity restaurant wage-theft scandals point to an industry norm Neil Perry’s Rockpool restaurant agreed in October 2018 to back-pay staff $1.6 million. Daniel Pockett/AAP

Our research, in partnership with William Angliss Institute, suggests he’s right about that. Since mid-2018 we’ve interviewed 180 culinary students, apprentice chefs and mature chefs as part of an ongoing study into mental health and wellbeing in the hospitality industry.

What they’ve told us confirms worker exploitation is institutionalised. In particular it takes three forms: unpaid overtime; not paying correct penalty rates; and making those looking for jobs do free work trials.

Our provisional findings confirm those of the 2018 Senate inquiry into corporate avoidance of the Fair Work Act. The inquiry’s final report cited Victorian estimates that 79% of hospitality employers did not comply with the national award wage system.

What we’ve found isn’t just that wage theft is rife. What’s notable is that it is less like burglary and more like daylight robbery. Most staff know they are being paid less than what they are entitled to but accept it as “the norm”.

Unpaid overtime

Dinner by Heston, which went into liquidation in December, allegedly underpaid staff by at least A$4 million over four years, according to the administrator’s report leaked to the New Daily. The restaurant carries Blumenthal’s name though he does not own it.

Former Dinner by Heston chef William Trist told the New Daily he never worked fewer than 60 hours a week, and sometimes more than 80 hours.

Our findings are in line with this and the other celebrity-linked cases mentioned above. Unpaid overtime is the most common form of wage theft. Many chefs and apprentices told us of working more than 20 hours of unpaid work a week during peak periods.

Expectations of unpaid overtime was described to us an intrinsic part of the hospitality business model. It wasn’t a case of inadvertent compliance due to a complicated award system (as suggested by one-time MasterChef Australia judge Matt Moran).

Read more: No, a 'complex' system is not to blame for corporate wage theft

It was clear to both bosses and workers. One apprentice told us their employer justified it in the following terms: “We don’t have the budget for it. So we need to wait until we have the budget and pay you.”

Penalty rates and entitlements

The next most common form of wage theft, our research suggests, is not paying penalty rates. The majority of interviewees worked Sunday shifts or overtime or through breaks in exchange for the promise of time off, or accepted as compensation meals that might have been thrown away anyway.

Our interviews also suggest underpayment of entitlements such as superannuation contributions is common. Younger workers in particular were often unaware their superannuation was not being paid correctly until it was too late.

One factor contributing to this is the cash culture in the hospitality industry. As one apprentice told us: “At my first job I asked them if I could be on the books and they said yes, but I didn’t get any pay slips. When I left that job I asked my former manager if I have a superannuation account or something, and he said no.”

Unpaid work trials

Unpaid work trials appear to be common too. Two young chefs told us about being duped by the same Sydney restaurant, being asked to work at least three days for free. Neither were offered a job. “Talking to my classmates,” a culinary student said, “it’s common doing free trials.”

One cultural tradition contributing to owners pulling this stunt is the “chef’s sabbatical”, when aspirational chefs do “stages”, working for free in renowned restaurants to learn from esteemed chefs. A “stagiaire” may volunteer for up to six months to hone their craft and improve their career prospects.

“I’ve done loads of stages,” one chef told us. She travelled for months in the United States and Britain, working in the best restaurants for free. She accepted it was standard practice in the industry to build a career.

Toxic culture

When our research is complete, we hope to be able to better quantify the extent to which industry practices contribute to poor mental health among hospitality workers.

Our provisional qualitative results suggest the effect is significant. Those we’ve talked to have told about the stresses of putting up with wage theft or seeking to address it.

“It was like a mental torture for me,” said one apprentice chef, “working ‘til four o'clock, getting paid 'til one o’clock.”

Another apprentice told us how his boss “went ballistic”, throwing a glass jar at the wall when he asked about his entitlements. “I had a massive anxiety attack.”

This toxic culture is contributing to workers quitting the industry. That’s a problem for a sector facing a shortage of 59,500 chefs by 2023 compounded by rising traineeship incompletion rates.

Authors: Richard Robinson, Research Fellow/Hospitality Management, The University of Queensland

Read more https://theconversation.com/all-these-celebrity-restaurant-wage-theft-scandals-point-to-an-industry-norm-131286

Business News

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How AEC Firms Can Scale Faster Without Sacrificing Project Quality

Growth presents a fundamental dilemma for architecture, engineering, and construction firms: expan...

What Makes an Aesthetic Clinic Worth Going Back To?

Trying an aesthetic clinic for the first time can feel like a bit of a gamble. You can read review...

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...

When Should You Speak with Divorce Lawyers in Sydney?

Divorce involves more than completing an online application. It can affect parenting arrangements, p...

How to Choose a Reliable Hot Water System Installer on the Gold Coast

Choosing a reliable installer is just as important as choosing the right hot water system. A qualifi...