Fresh calls for the prosecution of wage theft and chronic staff underpayment have been made at an inquiry into changes to penalty rates.
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A hearing for the Victorian Parliament’s inquiry into penalty rates and fair pay was held at the Ballaarat Mechanics Institute on Wednesday, with representatives from Commerce Ballarat and the Ballarat Trades and Labour Council presenting.
Ballarat Trades Hall secretary Brett Edgington said the bulk of enquiries to the Young Worker’s Legal Centre were around wage theft.
“If bosses are taking money out of their workers’ pay systemically and on purpose, which in many cases is the case, they should face jail time,” he said.
Mr Edgington said cash-in-hand situations and sudden dismissals of casual workers were causing huge stress for Ballarat’s workers.
When you invest time, you do your best and you turn up to work and give it your all for your boss, when something happens, it can be really emotionally devastating for workers.
- Brett Edgington, Ballarat Trades Hall
The inquiry has a focus on the impacts on vulnerable cohorts of workers, such as those in regional Victoria, women and young workers.
Commerce Ballarat vice chair Hayley Coates said that while the organisation supported prosecution in proven cases of wage theft, they were concerned about naming and shaming for unfounded allegations.
“It’s very important that allegations aren’t made public, because such allegations can make a serious detrimental effect on businesses.”
Ms Coates said businesses believed they might be able to offer more permanent part-time and full-time positions as a result of the reduced penalty rates.
Chair of the penalty rates and fair pay select committee MP Gabrielle Williams said the issue of wage theft had come up previously in the inquiry.
Of course some of the claims they were making about chronic underpayment of workers and preemptive cuts to penalty rates before they had actually come into effect were deeply concerning, particularly as they impact on young workers.
- MP Gabrielle Williams
The select committee was put together following the Fair Work Commission decision in February 2017 to reduce Sunday penalty rates for retail workers from double-time to time and a half, matching Saturday rates.
Hospitality workers had their Sunday rates reduced from 175 per cent to 150 per cent. Fast-food employees' Sunday rates were lowered from 150 per cent to 125 per cent.
