Inequality writ large in the NSW hospitality industry as a company grows wealthy by denying a fair rate of pay to its workforce

Multimillionaire Justin Hemmes comes from a privileged background having inherited the bulk of his wealth rather than earned it independently of the family company.

Yet as CEO of M.R.V.L. Investments Pty Ltd since March 2015 at which point the Merivale portfolio was said to contain more than 50 restaurants, bars, pubs and hotels in Sydney, with an estimated value of more than $1 billion he kept the family company’s wages bill so low for est. 3,000 employees - lawfully so under a Howard Government Workchoices-era collective agreement - that words fail me.

Merivale.com, retrieved 22 January 2019:

Owned and run by the Hemmes family for over 60 years, Merivale began as an iconic fashion house started by John and Merivale Hemmes. Merivale’s fashionable beginnings were soon followed by a venture into hospitality, opening a Thai tea café within their Sydney CBD fashion building in 1970. From here, Merivale’s hospitality roots were firmly planted.

Merivale is now led by CEO Justin Hemmes, whose creativity and knack for pushing the boundaries has made Merivale what it is today. Hemmes has become a pioneer within the Australian hospitality industry, growing the ever-expanding Merivale portfolio to over 70 brands and venues.

Financial Review, 23 May 2018:

Prominent Sydney hotelier Justin Hemmes has ridden the property boom all the way to this year's Rich List.

Hemmes and his family have amassed a $951 million fortune via the ownership of 70 pubs, hotels, restaurants and venues in and around Sydney, including The Ivy on George Street in the heart of the CBD.

He joins the biggest group of Rich Listers, property magnates, who this year account for 51 of the 200 names. Hemmes also just misses being among the record 76 billionaires on the list.

ABC News, 12 November 2018:

The drinking and dining empire led by high-profile Sydney hotelier Justin Hemmes is facing a push to kill off a workplace agreement that some current and former staff say denies them weekend penalty rates……

A former Merivale staff member, Maddie Lucre, raised concerns about being denied weekend penalty rates.

Ms Lucre worked at the Coogee Pavilion from January 2016 until July this year. With the assistance of United Voice, where she works in an admin role, Ms Lucre made a claim against Merivale for the weekend and public holiday amounts she claimed was owed to her under the company's agreement.

She was offered $2,706.72, the amount she claimed she was owed, on the condition that she sign a non-disclosure agreement. No admissions of fault were made by Merivale.

"I know that if I keep my mouth shut then no-one's going to find out about this," Ms Lucre told 7.30.

"Merivale has never been held to account for the fact that they are potentially underpaying people."

Financial Review, 21 January 2019:

Merivale is reviewing the viability of its business practices due to the axing of a WorkChoices-era enterprise agreement that gave it a significant commercial advantage in the industry.

The Fair Work Commission on Monday terminated Merivale's long-expired 2007 EA that allowed the hospitality giant to pay some 3000 workers below the award – more than 20 per cent below in some cases – by not applying overtime or full penalty rates for almost a decade.

The decision, which will not take effect until March to give Merivale time to transition to the award, is the result of United Voice taking action on behalf of two casuals who complained they were missing out on thousands of dollars a year……

Ms Tones, quoted by the union's submissions, said that 71 per cent of the company's workforce were casuals and 48 per cent worked on some form of visa.

Under the agreement, casuals were not paid full evening, weekend and public holiday rates or even overtime.

United Voice said one employee was paid $6 an hour less than the award on Saturdays, $10 an hour less on Sundays and $25 an hour less.

The Fair Work Commission having found on 21 January this year it would not be contrary to the public interest to terminate Merivale Employee Collective Agreement 2007 which had passed its nominal expiry date of 21 December 2012, Merivale now appears to be hinting that if it were to pay proper award rates to all its workforce it might have to close one or more businesses because it may not be able to afford a higher wages bill.

Again, words fail me.

NOTE: Justin Hemmes joined Twitter in March 2010 as @justinhemmes. Although he seems to have tired of the account sometime in 2014 it is still active and Twitter will allow civilised comments on this site.