The bitter truth behind hipster heaven: Iconic laneway cafes in Melbourne under investigation for underpaying workers
- At least 40 businesses have come under fire for potentially underpaying staffers
- Popular cafe strips on Degraves St and Hardware Lane in Melbourne are accused
- The Fair Work Ombudsman has launched a complete investigation into wages
- If true, the cafes could be liable for upwards of $50,000 in underpaid wages
At least 40 businesses on Melbourne’s famous cafe strips have come under fire for potentially underpaying staffers.
Popular venues on Degraves St and Hardware Lane in Melbourne’s CBD are under investigation by the watchdog after accusations of gross mismanagement of funds.
The Fair Work Ombudsman has launched a complete investigation into the underpayment claim and is today approaching these cafes for an unannounced audit, The Herald Sun reported.
Inspectors will be speaking with business owners and management as well as staffers to establish average pay grades.
At least 40 businesses on Melbourne’s famous cafe strips have come under fire for potentially underpaying staffers
Popular venues on Degraves St and Hardware Lane in Melbourne’s CBD are under investigation by the watchdog after accusations of gross mismanagement of funds
Fair Work Ombudsman Sandra Parker told the publication they were taking a proactive approach to the accusations.
‘Protecting the rights of vulnerable workers in the fast food, restaurant and cafe sector is a priority for the Fair Work Ombudsman,’ Ms Parker said.
‘Our audits have established a link between prices and wage underpayments and it is clear that the true cost of cheap food may be the employees’ lawful entitlements.
One complaint which was lodged in relation to a cafe on Degraves St claimed a worker was paid as little as $11 per hour.
And a series of payslips, bank account transfers and receipts of cash payments obtained by The Herald Sun suggest further wrongdoing.
If proven correct, the cafes could be liable for upwards of $50,000 in unpaid wages.
‘We will take enforcement action if today’s audits find serious breaches of workplace laws,’ Ms Parker said.
Inspectors will be speaking with business owners and management as well as staffers to establish average pay grades