Matters of Interest

Wage Theft

The Hon. I. PNEVMATIKOS (15:46): Article 23 of the United Nations Universal Declaration on Human Rights states:

Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.

I believe it is important that we reflect on why the United Nations saw fit to include employment in a document that sets out basic human rights. Could it be that employment is a basic human right and not, as some would have us believe, a privilege?

I fully understand that there are differing perceptions of what a regulated industrial relations system should look like. There are some who want the market to regulate itself, where employers decide when, how and in what manner they pay their employees. This may be suitable when there are safeguards and systems in place to protect all parties involved, but as we have seen recently in a number of sectors these safeguards do not always exist.

The recent comments made by the general manager of Muffin Break, Natalie Brennan, are an example of such behaviour. Ms Brennan accused millennials of having an inflated view of themselves and being unwilling to work for free. In essence, some young people are expected to be grateful for the privilege of work without any entitlements or pay, by the grace of employers.

It simply is not acceptable for people to participate in our society with all the obligations of being a citizen without being paid a decent wage while working. How are young workers and young people expected to pay for essentials such as food and rent without some form of pay for the work they do?

I acknowledge that Foodco, the company which sells Muffin Break, issued the following apology:

Our policy is, and has always been, that all employees including interns, employed either directly or through our brands, are paid according to relevant awards.

However, this conflicts with a statement made to a Senate inquiry last year by a Muffin Break franchise owner, who reported that they were encouraged to underpay staff who they could trust. The advice he received was that, as a migrant, he must be aware of other migrants or students who would not report or complain about underpayment for the privilege of their first job.

In 2016, the Ombudsman found two Muffin Break workers were underpaid a total of $46,000. In 2014, a student who had worked for the franchise for almost two years had been underpaid by almost $20,000.

My intention is not to single out any one particular person or employer. Ms Brennan's comments and Muffin Break are just recent examples that have been in the media and have encouraged this debate. I look forward to the opportunity to have an open dialogue with Ms Brennan of Foodco in terms of how we can encourage a just and proper system of employment and encourage them to make a submission to the Select Committee on Wage Theft in South Australia. But it does paint an alarming picture.

We cannot continue to see examples of exploitation in the workplace and do nothing about it. We need to shine a light on this issue because in all likelihood there are other employers adopting similar practices, which is completely unacceptable in Australia. I am pleased that since the matter has been raised there have been a significant number of tweets, articles and posts in opposition to the comments and behaviours associated with Muffin Break.

We all need to be talking about this issue. South Australia is facing growing unemployment and stagnant wage growth. This is making working conditions more precarious than ever and it affects our most vulnerable workers the most, including young people. It starts by acknowledging that having a job that pays a decent wage is not a privilege, it is a basic human right and one we should all fight for.