Restaurant and Catering Industry Association calls for pay freeze for hospitality workers

Despite a shortage of staff to fill available vacancies, the Restaurant and Catering Industry Association has called for no increase in the minimum wage for in its submission to the Fair Work Commission annual review of wage rates in the sector.

Arguing take-home pay is already rising due to job shortages, on top of superannuation increases and measures announced in the is week’s Federal Budget, the Association is proposing a wage freeze that would mean workers would effectively suffer a pay cut in real terms.

As reported by Guardian Australia, Wes Lambert, the Association’s Chief Executive, warned that if the Fair Work Commission ordered bigger pay rises it was “only a matter of time” before cafes charged $7 for a coffee - prices he said were common in other major global cities.

By contrast, unions say workers deserve a 5% pay rise to keep up with inflation, calling for Australia’s minimum wage to be increased to $21.35 an hour to boost the income of those who rely on the annual wage review for a pay rise.

Unions argue that 2.67 million employees who rely on the annual wage review deserve a 5% or $2,000 a year increase to keep up with spiralling inflation.

Last year inflation grew by 3.8%, compared with just 1.7% for wages, and the decline in real wages has continued this year, with inflation growing 1.25 percentage points faster than wages.

The Restaurant and Catering Industry Association argued that its members had already shelled out 4.75% more for employee expenses in 2021: 0.5% for increased superannuation in July, 1.75% for the 2020 minimum wage rise delayed to February, and 2.5% for the 2021 rise in November.

Lambert said that market wages in hospitality had increased by 3.5% this year alone, “higher than any other industry”, adding “that is absolutely evident in advertisements for nearly 100,000 open positions in accommodation and food services at rates that are well above the award, with some barista and kitchen hand positions earning nearly six-figures.

“So certainly the critical workforce shortage and low unemployment is naturally driving up wages.”

The submission said the “overwhelming majority” of the association’s members sought “no change to the current minimum wage”.

59% of the Association’s members surveyed wanted any minimum wage increase, if ordered, to be pushed back from July to November or February.

Shangri-La hotel operator signs Enforceable Undertaking

With employee interest in the restaurant and hospitality sector having been impacted in recent years by cases of wage theft, the operator of the Shangri-La hotel in Sydney has this week entered into an Enforceable Undertaking (EU) with the Fair Work Ombudsman and has back-paid employees more than $3 million.

The Fair Work Ombudsman discovered that Lilyvale Hotel Pty Ltd, which operates the five-star hotel located at The Rocks, had underpaid employees during a proactive auditing campaign in 2018.

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