Outback Steakhouse underpays workers on training scheme
National restaurant chain Outback Steakhouse has been accused of using a training scheme to underpay workers.
Workers say it used a government-subsidised hospitality traineeships to reduce its payroll to half the national award rate.
The employees, all student workers, say they were asked to sign up for the training which had them on a three-year contract that offered little relevant training and kept them on low wages.
The training scheme and the underpayments were uncovered by the South Coast Labour Council when it was trying to recover unpaid wages on behalf of young people.
"The Australian taxpayer is effectively funding this exploitation of young workers using the Vocational Education and Training system," South Coast Labour Council secretary Arthur Rorris told Fairfax Media.
"Let's be clear, a full-time university student does not knowingly sign a three-year traineeship contract as a waitress just so that she can cut her wages in half.
"All of this is happening under the noses of the government and its 'Smart and Skilled' training system that has allowed private training companies to use taxpayer's money.
"We are calling for an independent inquiry into the traineeship system and mounting evidence of exploitation that is emerging."
Outback Steakhouse is run by Icon Restaurants Australia. Employees are provided with a 2002 wage agreement.
Under the terms of that agreement, the employee who enters a traineeship is paid at "the minimum rate" for the duration of a traineeship.
The agreement stipulates that a "trainee will undertake an average of 20 per cent of time in training". And their pay is to be reduced by this same percentage.
Fairfax Media revealed details of the training scheme when it was investigating the exploitation of student workers in Wollongong cafes, restaurants and retail.
Students interviewed by Fairfax are ropeable about how they were used by the restaurant chain to provide service at next to no cost.
One of them, Kiara Robinson, 22, was enrolled in the training program with Outback Steakhouse in the Wollongong suburb of Fairy Meadow in 2014.
Advertisement Apart from two sessions that required her to fill out a booklet and answer what she described as basic questions, she claims she received no on-the-job training at the sessions which lasted up to two hours each.
"There was no training while we were working," she told Fairfax Media. "It was basically doing some paperwork to get a traineeship."
She was paid $11.80 per hour, about half the adult casual rate of $21.94.
In a statement, Outback Steakhouse said it was aware Ms Robinson’s concerns and had been in contact with her and her agents.
“Staff remuneration for employees undertaking traineeships is never discounted and aligns with all other employees under Outback Steakhouse’s Certified Agreement,” the statement said.
“Fair treatment of all employees is core to the business and Outback Steakhouse encourages employees with concerns about their pay or training to contact the company directly.”
by Leon Gettler, April 20th 2017
