Imagine working hard for hours, only to find out you’re not getting paid what you’re owed. Unfortunately, this is a harsh reality for many young workers in Australia.
According to a recent study by the University of Melbourne, one in three young workers report being financially exploited across the economy.
A Common Experience in Hospitality
Mia McDowall, a 22-year-old cafe worker, knows this feeling all too well. She’s worked for multiple employers who didn’t pay her correctly, forced her to work through breaks, or didn’t pass on superannuation to her fund.
“Wage theft is absolutely rife, for sure,” McDowall says. “I know more people my age who have spent any significant amount of time in hospitality that have had wages lost than haven’t.”
The Extent of Wage Theft
The research found that two-thirds of young workers were forced to pay for work-related items, almost one-third weren’t paid compulsory super, and more than one-third were banned from taking entitled breaks.
One in five said they had been paid off the books, almost 10% were paid in food or products, and 8% said they never received a pay slip.
A Culture of Fear
Vulnerable workers are too afraid to speak up about their entitlements, fearing it could jeopardize their job. This culture of fear is a significant concern, says Professor John Howe, the study lead.
“The majority of employers are doing the right thing, but there’s obviously a significant proportion of employers cutting corners with their young workers wherever they can.”
The True Scale of Underpayments
Howe worries that the true scale of underpayments could be even higher, as many workers aren’t sure if they’re being underpaid.
About one-third reported being paid as little as $15 an hour, well below the national minimum wage of $24.95 per hour.
Exploitation Across Industries
Researchers found exploitation not only in hospitality but also in utilities industries, agriculture, forestry, and even unionised workforces, including mining.
Seeking Help and Empowerment
McDowall believes her experiences fighting for her minimum entitlements were vital in gaining the skills she needs in her new career as a women’s organiser for Trades Hall.
She encourages anyone to stick up for themselves, pointing to the Fair Work wage calculator and Young Workers Centre as great places to start.
“It’s so important that we are teaching young people how to determine what their pay should be and how to teach people how to have those conversations.”