October 28, 2018
Unions say wage theft has become a business model in Australia after research reveals backpackers are more than likely owed more than a billion dollars in unpaid wages.
The study, by researchers at the University of New South Wales and the University of Technology Sydney, found that a third of temporary visa holders were paid less than $12 per hour, less than half the legal minimum for casual workers.
Those who have had their wages stolen were unable to get their money without embarking on a costly, protracted and complicated process in the Federal Court.
The researchers said only three per cent of temporary visa holders whose wages were stolen took their complaint to the Fair Work Ombudsman, and more than half of those who did go to the ombudsman recovered nothing.
ACTU Secretary Sally McManus said everyone who works in Australia should have basic rights, including the right to a fair wage.
“Our system is out of balance. Big business has too much power and working people don’t have enough. Wage theft is a business model in Australia,” Ms McManus said.
“Bad business owners steal wages because they know they’ll get away with it, and business owners trying to do the right thing are forced to compete with crooks who are exploiting people to get an unfair advantage.”
The ACTU has called for the industrial umpire to be given the power to order backpay for victims of wage and superannuation theft.
“We need to make it easy for people who’ve had wages stolen to get their money back, and we need to put workers representatives back on the wage theft beat and give them the power to inspect the books to make sure bosses aren’t stealing,” Ms McManus said.
“Those employing people on temporary visas should be made to register and everyone who comes to Australia to work should receive information on their rights and access to representation in their native language.”
