SENATE INQUIRY TO PROBE WAGE THEFT

EWIN HANNAN
 NOVEMBER 13, 2019

The Australian 

The extent and amount of unlawful underpayment of workers by employers will be investigated by a Senate inquiry that will scrutinise whether companies regard wage and superannuation theft as the “cost of doing business”.

The Senate on Wednesday backed an ALP motion to establish the inquiry which follows revelations an array of major companies have underpaid workers, including employees of Woolworths who have been underpaid up to $300 million over nine years.

The Senate’s Economics References Committee will examine the “reasons for wage theft” and the cost to the national economy, with a reporting date of June next year.

It will investigate the best means of identifying and uncovering wage and superannuation theft and the taxation treatment of people whose stolen wages are later repaid to them;

The inquiry will also examine the most effective means of deterring wage and superannuation theft.

Speaking to the motion, Liberal senator Jonathon Duniam said the government had “zero tolerance” when it came to worker exploitation but “having yet another talkfest” on the issue was entirely unnecessary.

He said the issues were well-known and the government was acting by increasing funding to the Fair Work Ombudsman, boosting the regulator’s powers, increasing penalties for worker underpayments, and drafting new laws to criminalise wage theft.

“Action is what’s needed and action is precisely what’s happening,’’ he said.

Labor’s industrial relations spokesman Tony Burke said the inquiry was a “win for Australian workers”.

“It will help the parliament develop ways to stop employers ripping off their staff, and ensure workers get what they are owed,’’ he said.

He said Labor had been calling on the Liberals for five years “to do something about worker underpayment, whether it occurs as a result of genuine payroll error or deliberate, systematic wage theft”.
“But despite scandal after scandal — from 7/11 in 2014 to Woolworths just a few weeks ago — the government has refused to act,’’ he said.
“Scott Morrison simply does not take wage compliance seriously. And by failing to act on this issue, his government has sent the message to businesses that they don’t need to take it seriously either.
“Wage theft doesn’t just hurt those workers who are underpaid. It also has an impact on our economy, as people put off spending and struggle with stagnating wages.”