Modern Day Slavery !

It can be argued that a form of modern day slavery is rife here in Australia and that the Fair Work Ombudsman is conducting an investigation that may cause red faces in the boardrooms of some of our biggest corporations.

We are a country that protects workers by stipulating the rate of pay that applies.  This is calculated on the number of hours worked and contains "loadings " for overtime or work on weekends and public holidays.  Employers are required to keep accurate records of those on their pay roll and these must be available to inspectors on demand.

When we see a national logo on a business it often means that a vast public company is actually conducting its business by way of "franchised " outlets.   This is common in the fast food industry, convenience stores and petrol resellers.   Each individual outlet operates under the national brand, but is owned by someone who pays to attract customers by using the respect that logo achieves.  The staff employed are employees of that person, not of the national company.

Obviously, the cost of paying staff to work that business is a major overhead and the Fair Work Ombudsman has received many complaints of pay deficiencies. In particular, it seems that students from overseas studying in Australia are being asked to work long hours for very sub standard pay. They are vulnerable because under their visa rules they have work restrictions and some employers agree to ignore those rules in exchange for paying well below the award.

We recently had a wage scandal that engulfed many convenience stores working under a franchise.  Some operated on a twenty-four hour basis - and they usually also sold petrol.   Now one of the major oil companies is in the spotlight and once again it is franchised outlets and the Ombudsman will be examining pay records with the view of launching prosecutions.

The part time adult rate for service station workers who work behind the counter is $ 19.56 an hour, rising to $ 29.34 for the first three hours of overtime.   On Sundays, the rate climbs to $ 29.34 an hour and on public holidays to $ 39.12.    Those employed on a casual basis are entitled to $ 25.65 an hour, rising to $ 33.34 on weekends.

Some workers claim they are paid as little as $ 13 an hour for all hours worked, and penalties apply if a customer fills a car and drives off without paying.   The attendant is required to makeup that loss and it is deducted from their pay.

This pay scam can take several forms.  Sometimes the rate of pay is scrupulously correct for the number of hours stipulated on the pay check, but the actual number of hours worked was far in excess of that claim.   In other cases the recipient is a "ghost worker ".   He or she does not appear on any formal pay documentation - and pay is cash in hand.

This system of "loadings " for weekend work and public holidays is a relic from an earlier age.   We are now a twenty-four-seven society and a uniform pay for all hours should apply.  Not only would this deliver increased job prospects, many people actually seek unusual working hours to enable them to indulge in sports, study or research activities.

Paying below the hourly rate is a newer form of slavery.  Not only does detection result in "name and shame "in the media, it also brings the guilty to court to face charges !