Audit reveals endemic wage rorts in fast food industry

An audit by the Fair Work ombudsman into the fast food industry has exposed widespread underpayment of workers. The ombudsman’s spot checks revealed that only 53 percent of fast food outlets were paying their workers correctly.

The fast food industry award dictates minimum rates of pay and working conditions which apply to workers across the whole sector. This latest report confirms that the fast food industry is built on the widespread flouting of award minimums.

After one prominent franchise, Bing Boy, was investigated for the underpayment of workers on working-holiday visas, it defended its $13 an hour flat wage rate by arguing that $10 an hour was common across the industry. Based on these rates of pay, fast food workers are taking home around $350 a week less than is allowed under the award.

In the similarly low-paid hospitality industry, a Fairfax Media investigation in October 2015 found that up to 80 percent of foreign language job listings were openly advertising hourly rates well below the minimum wage. In some cases, employers offered “black market” jobs for as little as $4 an hour.

In the hospitality and fast food industries, where jobs are insecure and many workers are young, it has become the norm to take what you’re given. There is very little expectation that workers will receive legal minimum rates, penalty rates, overtime payments or job stability.

While the Fair Work ombudsman may investigate a handful of employers that come to its attention, many thousands more will carry on their illegal operations unhindered.

It is to the shame of the Shop, Distributive and Allied Employees’ Association – the union responsible for fast food industry employees – that working conditions have become so bad in this industry. In hospitality, the inaction of the union, United Voice, has left thousands of hospitality workers stuck in low-paying and precarious jobs.

It is incumbent on these unions to set foot in the workplaces where their members work, explain to workers what their rights are and start organising them. Collective organisation is the only defence that fast food and hospitality workers have against bosses who are used to getting their way.