Hospitality union calls for “exemption rate” trial to better protect workers

New pay arrangements have been introduced raising concerns for the hospitality union.

The United Workers Union (UWU) is concerned that chefs on wages above $82,000 per year would be excluded from overtime and penalty rates.

The union has requested extra safeguards for the exemption rates that have received initial sign-off from the workplace tribunal. Safeguards would include having a committee of union representatives to monitor how businesses use the new exemption rates.

Last year former industrial relations minister Christian Porter proposed the exemption rate and other streamlined classifications so the Fair Work Commission could simplify the restaurant award for businesses affected by the pandemic.

Jeremy Courmadias, general manager of Fink Group which includes high end restaurants Quay, Bennelong, Firedoor and Otto, told the commission the group employed many senior staff with salaries above the award.

Fink Group oversees 330 staff.

“We would immediately seek to introduce exemption rates into our business for roughly 30 employees,” Courmadias said in a witness statement.

Exemption rates are expected to avoid complex reconciliations of pay and hours worked, with Mr Courmadias stating they could also lift the pay for “some or many of these staff” and “the certainty and rate of pay would assist us in retaining highly skilled staff in a competitive environment”.

However, The Lucas Group in Melbourne said the exemption rate was “too high for us” and they would not use it. They also said the 57-hour threshold before overtime pay kicks in was also too high.

The union wants to see the exemption rates, streamlined classifications and loaded rates come in as a 12 month trial only if approved. A review would be held after nine months conducted by a monitoring committee made up of union and employer representatives to ensure the new rates and classifications are used fairly.

UWU director Ben Redford has consistently opposed any measure which would leave workers worse off.

“Reductions in take-home pay would not assist this industry to continue to recover from the economic effect of the pandemic – in fact, any such measure would be counter-productive, and contribute to the specific challenge facing the industry at present – attracting and retaining staff,” Mr Redford said.

Irit Jackson, 1st July 2021