Ms THEOPHANOUS (Northcote): It has been a tough year—perhaps the toughest many of us can remember. For so many in my community the pandemic has wrought havoc on our livelihoods, on our sense of security, on our mental wellbeing; it has shaken us to our core. As we now embark on the difficult road to recovery, it is important that every step of the way we think about how we can use the lessons learned during this pandemic to innovate and to reform for a different kind of future.
If there is one thing that has been revealed through all of this, it is the precarious nature of work that so many find themselves in, the limitations within our industrial systems and the vital lifeline provided by a secure job and a fair wage—things that, I will add, our mighty union and labour movement has been talking about for decades. At its heart this bill is about fairness—fairness to the far too many Victorians that have found themselves on the wrong end of wage theft, workers who have endured not just the financial burden of a loss of wages and entitlements but the psychological and indeed spiritual burden of being undervalued and mistreated, sometimes in the most humiliating of circumstances.
Importantly many employers and small businesses have also suffered because of wage theft. Every time we allow business to perpetrate wage theft we reinforce a playing field that is stacked in favour of those perpetrating the deception. In my electorate of Northcote we have seen some high-profile cases in the hospitality sector, some of which I believe are still subject to legal proceedings. These cases damage the reputations of all the other cafes and eateries. I know this because I have spoken to many of them. There are many businesses that have spoken to me about the comments and the looks that they get when these cases of wage theft hit the media—businesses that are doing the right thing—and it is not fair. Nor is it fair to them that their competition, by ripping off their workers, are getting a significant price advantage when it comes to the cost of doing business—an advantage that allows them to get more people through the door by being just that little bit cheaper.
I am thankful that many in my community vote with their feet. When it is revealed that a business is committing wage theft, many choose to take their business elsewhere. I love that about north-siders. I love that they care about the people that make their coffee and serve their food. It is those same people that have contacted me through this health pandemic concerned about those left behind by the federal government’s JobKeeper scheme. I have had so many people contact me about this—not just the people that are directly affected but the people that are concerned for their friends and families and even strangers. Many of those impacted by wage theft are among the most vulnerable workers in our economy: young people, migrant workers, international students and people in some of our lowest paid industries.
It is these same workers that have now been left behind by the Prime Minister, his Treasurer and the Minister for Industrial Relations. I suspect that when it comes to the accounting blunder that was admitted by the federal government a couple of Fridays ago—the miscalculation of a mere $60 billion—it was based on a fundamental misunderstanding of employment in Australia. They were clearly unable to fathom how many people they were discounting from the JobKeeper scheme when they ruled that it only applied to what they deemed real jobs. Either that or they did know, which is worse. Just like those opposite have demonstrated in this debate, they have no idea what it means to stand up for workers. It is plain to see that is just not in their value set. To all those Victorians that have been impacted by wage theft, you are being told by those opposite that you do not count, because the fact is that the opposition is happy to look past wage theft. They are comfortable to let it happen and they are prepared to kick people when they are down, just like the federal Minister for Industrial Relations is happy to leave millions of workers high and dry and unable to access the JobKeeper subsidy.
In my community that decision to exclude so many workers has hit hard. So many in the hospitality industry have been left behind; so many in the creative industry have been left behind. Indeed the Grattan Institute recently released data showing that the federal electorate of Cooper, which encompasses the Northcote electorate, has been one of the worst impacted metro Melbourne areas in terms of job losses. It shows that between 14 March and 18 April our community lost 7.2 per cent of jobs.
The need for emergency relief and assistance has also risen exponentially. One local effort, led by our champion neighbourhood houses, has delivered over 4000 meals and over 3000 bags of groceries since it began in March, and they are not slowing down. But why should we even have to make these arguments? We heard the opposition say that this is not the time to fix the inadequate laws that leave workers vulnerable. Please explain to me: when is a convenient time to work towards justice and fairness?
Last year, with the member for Ringwood, I helped host the first of a series of forums to hear from victims of wage theft in the Northcote electorate. The stories I heard were not instances of an administrative error on a payslip; they were heart-wrenching tales of deliberate underpayment, exploitation and mistreatment. We know that hospitality workers are some of those most likely to be victims of wage theft, with one in two hospitality workers being underpaid, but similar figures apply in retail, beauty and fast food. Indeed no industry is immune from this, and many of the workers I heard from during the forums said they felt powerless to speak out. Afraid of losing their jobs or threatened with deportation, they did not know where to turn. Their stories shine a light on the emotional toll of wage theft and the destructive impact it has on our sense of self-worth, as well as the way we collectively value and think about work. At that forum I was also pleased to hear from employers who are not only doing the right thing but are working hard to lead the way and raise awareness of wage theft in their industries. Every story I heard highlighted why the measures outlined in our Wage Theft Bill 2020 are so important.
The Fair Work ombudsman recovers millions of dollars in unpaid wages and entitlements from employers doing the wrong thing every year. It is clear from this that the current regulatory framework is not sufficient to deter dishonest employers. This bill delivers on our commitment to criminalise wage theft by introducing three offences as well as establishing a wage inspectorate with the power to investigate and prosecute these offences. Under these changes employers will face up to 10 years in prison and hefty fines for dishonestly withholding entitlements, falsifying records or failing to keep records for financial gain or to cover it up. These penalties are equal to those for Victorian theft and fraud offences. They are tough, and we know that. They are tough because unlike those opposite, we recognise that theft and fraud are wrong, and we know that those workers most likely to be impacted by wage theft are often the most vulnerable, the least able to speak up—those who live from week to week, doing their best in an economy where insecure work is more and more prevalent while the cost of living goes up and up.
The consequences of wage theft can be long-lasting and tangible. It can mean the difference between a roof over someone’s head or a bag full of groceries or an opportunity to pursue further education. Stealing a person’s superannuation can literally change their future for the worse. This bill sends a strong message that wage theft is not acceptable. It helps protect our most vulnerable workers, and it establishes a mechanism for dishonest employers to be investigated and held accountable.
This bill also levels the playing field for tens of thousands of employers doing the right thing. As an employer, you should not have to compete against businesses who benefit from illegally underpaying staff. Small businesses are a vital part of the Northcote electorate and every community across the state. We know that especially now many are doing it tough. It is important for you to know that this bill does not create any additional obligations for your business, and this bill is not aimed at penalising employers for things like unintended errors in bookkeeping. The bill specifically and narrowly captures dishonest conduct, conduct that is already illegal under existing offences.
Those opposite have tried to characterise it and the broader discussion as a fight—a zero-sum game between workers and the bosses. That is a false premise. So many business owners across my electorate care deeply about their employees. Many are mentors to a younger generation. This bill is about fairness: a level playing field for businesses and fair entitlements for workers. Surely these are principles that those opposite could embrace rather than deride?
There is a long road ahead of us out of this pandemic. Its impacts on our economy, our health and our wellbeing will be with us for some time. However, thanks to the decisions of this government, we are in a strong position to rebuild. And as we rebuild—as we go back to work, start new jobs and explore new opportunities—this bill will help ensure a fair go for every worker and business doing the right thing, and I happily commend it to the house.
