'It's rife': One third of Australia's young workers report wage theft

SBS Australia

5 hours ago

Cafe worker Mia McDowall was initially shocked to discover she'd been underpaid by thousands of dollars but soon learnt it's an experience all too common in the hospitality industry. The 22-year-old has worked for multiple employers who either didn't pay her correctly, forced her to work through legally mandated breaks or didn't pass on deducted superannuation to her fund. "Wage theft is absolutely rife, for sure," McDowall told the Australian Associated Press. "I know more people my age who have spent any significant amount of time in hospitality that have had wages lost than haven't."
McDowall is among more than one in three young workers who report being ripped off, according to University of Melbourne research released on Tuesday.
Two-thirds were forced to pay for work-related items such as uniforms or protective equipment, almost one-third were not paid compulsory super and more than one-third were banned from taking entitled breaks. One in five said they had been paid off the books, almost 10 per cent were paid in food or products and eight per cent said they never received a pay slip. "The extent of all the different ways that people are being denied their entitlements or employers are breaking the law shocked me," study lead John Howe said.
"The majority of employers are doing the right thing, but there's obviously a significant proportion of employers cutting corners with their young workers wherever they can."
About one-third reported being paid as little as $15 a hour, well below the national minimum wage of $24.95 per hour, but Howe worries the true scale of underpayments could be greater. "It could be a lot higher, because a lot of workers weren't sure if they were being underpaid," he said. "Vulnerable workers are worried about raising complaints or asking questions about their entitlements because they don't want to jeopardise their job." Researchers expected to find exploitation among hospitality workers but also identified workers being ripped off in utilities industries such as gas and water, agriculture, forestry and even unionised workforces, including mining. Some 2,814 workers younger than 30 took part in the survey conducted by the Melbourne Law School as part of its Fair Day's Work project.
Only one in three reported seeking help from a union or body such as the Fair Work Ombudsman, with Prof Howe recalling many expressed helplessness over their situation.
Now a women's organiser for Trades Hall, McDowall believes her experiences fighting for her minimum entitlements were vital in gaining the skills she needs in her new career. She encouraged anyone to stick up for themselves, pointing to the Fair Work Wage Calculator and Young Workers Centre as great places to start. "It's so important that we are teaching young people how to determine what their pay should be and how to teach people how to have those conversations," she said.