The hospitality Award system is outdated and penalises workers and employers and urgently needs an overhaul, according to leading pub groups and industry consultants.
Australia has seen a succession of pay dispute scandals involving hospitality sector businesses, headlined by such recent and sensational collapses as George Calombaris’ fine-dining establishments.
While media and pundit criticism has centred on reputedly fat-cat proprietors, not enough culpability has been levelled at the structure of the payment system to which hospitality businesses are expected to adhere.
But even beyond the complexities built into an antiquated system, a restrictive, blanketed framework has evolved that seeks to prop up the lowest common denominator, yet hobbles the best and brightest hoping to advance careers.
Awards were conceptualised generations ago as protections for everyday workers, typically on the job for business hours, Monday to Friday. The rapidly changing nature of hospitality industry has come to be perhaps the furthest removed from this ancestry – exacerbated by communities that increasingly expect more, in product, service and trading hours.
“This approach could not be further removed from the needs of our industry and the guest experience,” responded one leading Sydney operator to PubTIC’s questions.
This problem is seen in Award-mandated regulations such as specified breaks, which may come during peak times, forcing the employer to roster around the problem and employees to break stride at the times they may see the most tips.
Limits on shift hours can similarly hamstring employees, particularly younger workers and students, often seeking to make the most of the time they have available to work.
“Staff are not given a choice in how they prefer to work, it is simply mandated by the Award.”
At the next level, the regulations encourage employers of permanent staff to hire managers into salary positions, at a rate sufficiently above their Award counterparts that they do not need to be given the same overtime and penalty rates.
In turn both the employers and managers are forced to foster a task-driven culture in casuals to maximise productivity, and casual workers are deterred from seeking to advance, as many opt instead for the short-term benefits of loadings.
“Many employees are seeking to work additional hours to gain experience as well as the ability to earn more income,” explains the HR manager of a large pub group. “In an Industry where we acknowledge a shortage of talent, we are operating in an Award system that cuts career progression off at the knees.”
Hospitality has become one of the final frontiers where low-skilled workers can build a career through hands-on experience, versus undertaking formal study, but overtime provisions in the Award framework discourage employers from offering additional hours, where they’re paying up to 200 per cent of regular rates.
This aspect alone can further the cycle, as a lack of available earning potential forces employees to work multiple jobs, which both necessitates and perpetuates the casual work cycle, leading to further lack of development and inability to progress.
“The only ones winning may be the junior roles that have no interest in progressing within the business,” suggests one operator.
A recent survey of 934 hospitality workers by Barcats found a troubling 40 per cent suspected their pay packets may not be correct, with a third actually finding a discrepancy.
The combination of workers seeking to optimise their benefits in a complex system has put increasing strain on the relationship between staff and boss.
“The pay scandals from the last couple of years have had an impact on staff trust when it comes to their pay,” offers Jeffrey Williams, founder and CEO of Barcats, a digital platform that connects employers with staff looking for work.
“We are actively working with FWO to create links to articles and resources for all venues to access up to date information around award changes.
“I must stress that it is not easy being a venue owner or operator and ensuring that they are operating at 100 per cent compliance, with the amount of moving pieces from both a staffing and regulatory perspective.
“It is a continual challenge and we are trying to assist by creating greater access to up to date information.”
