Modern Australian
Men's Weekly

.

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

The Importance Of Structured Commercial Office Cleaning In Busy Office Environments

Office spaces are dynamic environments where people collaborate, meet clients, and spend a significant portion of their day. Maintaining cleanliness...

Single Tooth Dental Implant for Natural Tooth Replacement and Lasting Stability

Losing a single tooth can have a noticeable impact on comfort, appearance, and confidence, which is why a Single Tooth Dental Implant is considered...

When Grief Doesn’t Follow a Timeline

Grief rarely moves in a straight line. It doesn’t follow stages neatly, and it doesn’t respond well to pressure — especially the quiet pressure ...

Steel Plate And Its Role In Modern Construction And Manufacturing

A steel plate is one of those materials that quietly holds the modern world together. It does not demand attention, yet it supports bridges, buildin...

Understanding Fat Transfer to the Breast: What to Know Before Considering the Procedure

Surgical options for breast enhancement have evolved over time, offering different approaches depending on a person’s goals and body type. One opt...

What to Do When Your Car’s Side Window Is Broken

A shattered side window is more than an inconvenience. Whether caused by a break-in, road debris, or accidental impact, it leaves your vehicle exposed...

Shopify Web Development and Shopify Website Development for Scalable Online Stores

Choosing the right platform is a crucial decision for any online business, and Shopify web development has become a popular choice for brands that ...

How a Burleigh Heads Plumber Tests for Pipe Leaks

Pipe leaks can be deceptively difficult to spot. Some announce themselves with a steady drip under the sink, but many develop quietly behind walls, ...

What Local Businesses Should Expect from IT Services in Melbourne?

If you run a Melbourne business with roughly 7–100 staff, you have probably noticed something over the last couple of years. The IT problems got m...

How Professional Cleaning Improves Indoor Air Quality

Indoor air quality (IAQ) plays a crucial role in our health, comfort, and overall wellbeing. Australians spend nearly 90% of their time indoors-at hom...

Solar and Solar Battery Systems: Powering Smarter Homes in Victoria

As energy prices continue to rise and sustainability becomes a priority for Australian homeowners, more families are investing in Solar and Solar Ba...

Plumbing Emergency Melbourne: What to Do When Every Minute Counts

A sudden plumbing issue can quickly turn into a major disaster if not handled promptly. From burst pipes and overflowing toilets to leaking gas line...

Why Older Melbourne Homes Require Detailed Building & Pest Inspections

Older homes make up a large part of Melbourne’s housing stock. Victorian terraces, Edwardian houses, Californian bungalows, and post-war brick hom...

7 Essential Tips for Choosing Reliable Moving Services in Perth

Moving to a new home or office can be exciting, but it also comes with stress, planning, and plenty of decisions. One of the most important choices yo...

How to Find the Best Real Estate Agent Near You on the Central Coast

Choosing the right real estate agent can make a major difference to your final sale price, days on market, and overall experience. The Central Coast...

Unlock Durability And Beauty With Burnt Timber Cladding Solutions

Imagine a home or commercial space that not only stands the test of time but also tells a story through its very facade. In the world of architectur...

Offroad Caravans: Built for Adventure Beyond the Beaten Track

Australia’s vast and varied landscapes invite travellers to explore far beyond sealed roads and crowded parks. Offroad caravans are purpose-built ...

The Expert's Guide to Understanding Large Bore Steel Pipe Specifications

When it comes to infrastructure, construction, and various industrial applications, the choice of materials is paramount. Among the options availabl...