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Blue Mountains hotel group in overseas workers exploitation scandal

A Blue Mountains luxury hotel group is alleged to have systematically exploited its overseas workers.

A report by The Sydney Morning Herald has alleged that the Escarpment Group, which includes the Hydro Majestic, Lilianfels and Echoes hotels in its portfolio, recruits overseas workers on 407 training visas who are expected to work long hours of unpaid overtime and pay inflated board and lodging rents.

Indian citizen Arindam Biswas was, until last month, a front desk clerk at the iconic Hydro Majestic.

With a masters degree in international hospitality business management, Biswas earned just $1626 a fortnight, more than half of which was reclaimed by his employer as rent for board and lodgings in a twin bedroom he shared with another person. The workers pay more than $6600 for a 52-week internship, which meant he was left with about $330 a week in his pocket, not enough to start paying off his student debts.

“I have friends who have worked at hotels in Australia who saved three times as much as me,” he told The Sydney Morning Herald. “I am sure I am the most underpaid front desk agent in the country.”

Workers who wanted to move to cheaper accommodation were told the rent and board charge was compulsory and warned they would have to terminate their contracts and visas if they moved out of the hotel group’s provided accommodation, according to the report.

Other allegations included not paying overtime and lack of training.

The Escarpment Group is being investigated by the Department of Home Affairs and Fair Work but has denied underpaying or exploiting any of its employees, including those on 407 visas.

“Escarpment Group is co-operating with that investigation and believes that it has acted in accordance with the applicable industrial laws,” the Group said in a statement. “The investigation is continuing therefore it would be inappropriate to make any further comment at this time.”

 



Sheridan Randall, 8th July 2019