Burger chain Grill’d has had its undercooked 1% pay offer thrown out by the Fair Work Commission (FWC).
Following a challenge by unions in the sector, the commission agreed the proposed collective agreement was poorly explained and painted a “rosy picture” of wage rates that would leave many employees scraping just 77 cents above minimum award rates.
The deal sought to entrench Grill’d’s practice of paying flat dollar value penalty rates rather than usual percentage rates.
The combination of 1% annual wage rises and dollar value penalty rates would be shortly outpaced by higher percentage increases to the Award in coming years.
The SDA union said the Grill’d offer would see workers paid 20 per cent less on Sundays by 2028.
Nearly two thirds of the chain’s 4,300 workers are aged under 21 and Grill’d has a staff turnover rate of 60 to 80 per cent a year.
The Commission was critical of the chain’s treatment of its vulnerable staff in the decision.
“Given the very large number of young people with limited experience and knowledge, coupled with the very high turnover of staff and that under the agreement some employees may be only 77 cents a week better off…Grill’d did not take reasonable steps to explain the agreement,” the Commissioner said.
Decision reflects strengthened rights at work
IEU-QNT Branch Secretary Terry Burke said the decision reflected strengthened rights at work introduced in the last few years.
“Federal government reforms have bolstered employees’ rights at work, including by giving the FWC broader powers to intervene and ensure fair outcomes,” he said.
“For too long some employers had been getting away with subpar agreements that passed the Better Off Overall Test (BOOT) on face value but left employees worse off over time.
“This decision is a clear signal that such agreements are no longer acceptable,” he said.
Mr Burke said a hospitality or retail job is a rite of passage for many young people.
“The young people employed in these sectors should not be exploited simply because they are new to working life.
“The best thing a young person, or indeed any worker, can do to protect their rights at work is join their union,” Mr Burke said.
