CASE FOR CRITICAL ANALYSIS 3.2 Wage theft in Australia: modern-day slavery By Donata Muntean

Question: CASE FOR CRITICAL ANALYSIS 3.2 Wage theft in Australia: modern-day slavery By Donata Muntean Wage theft is the withholding of wages owed to employees whether by failing to pay the award, underpaying penalty rates or overtime, not meeting superannuation obligations, or failing to allow leave entitlements. It has been described as modern day slavery and isPlease answer all questions. Principle of responsible business.
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Show transcribed image textTranscribed image text: CASE FOR CRITICAL ANALYSIS 3.2 Wage theft in Australia: modern-day slavery By Donata Muntean Wage theft is the withholding of wages owed to employees whether by failing to pay the award, underpaying penalty rates or overtime, not meeting superannuation obligations, or failing to allow leave entitlements. It has been described as modern day slavery and is rife in the hospitality industry. Sharan Burrow, General Secretary of the International Trade Union Confederation, recently called for ‘serious sanctions’ to prevent worker exploitation in Australia. Returning to Australia to accept a Companion of the Order of Australia and to lobby against the government’s proposed anti-union bill,” she described the level of wage theft in Australia as unbelievable. Before the last election, the LNP promised to introduce legislation to criminalise wage theft and the ALP promised to introduce a tribunal attached to the Fair Work Commission so that costly court actions could be avoided. These proposals have met resistance from employer and industry groups. Labor’s industrial relations spokesperson, Tony Burke argued that if someone is deliberately withholding money that belongs to workers it is no different to a worker stealing money from his or her employer.78 Yet the problem continues. Only days after celebrity chef, George Calombaris was found to have stolen A$8 million from staff at his MADE Establishments, Neil Perry was also accused of wage theft. He allegedly overworked and underpaid staff at Rockpool, his chain of upmarket restaurants in Sydney, Melbourne and Perth. Calombaris paid a A$200 000 ‘contrition payment’ under a court-enforceable agreement with Fair Work Australia. Critics have said that Calombaris got off far too lightly. However, there have been other repercussions. He lost a lucrative deal with Tourism WA after the scandal, and he has been dropped from his position as a judge on the long-running cooking show MasterChef (although the reason given for his exit from MasterChef was that he and his fellow judges failed to reach an agreement with the producers of the show regarding payment and their contracts were not renewed).79 For his part, Neil Perry pledged to pay back A$1.6 million in back pay.⁹0 These are by no means the only hospitality employers to steal wages from employers; more and more cases are coming to light. 1