A Foley Labor Government will introduce laws to crack down on businesses – including head franchisors – that are guilty of ongoing, widespread and systematic wage theft – the practice of underpaying staff or paying them less than the legal minimum wage.

Labor’s 5 point plan to eliminate young worker exploitation comes on the back of the discovery of widespread exploitation of young workers in Wollongong late last year.

Reports of young worker exploitation let to raids on more than 80 Wollongong-based businesses.

The 5 point plan will see:

1. A new wage theft law to criminalise deliberate failure to pay wages and entitlements;
2. New laws to hold head franchisors accountable for the actions of franchisees;
3. Widened powers of workplace inspector to undertake wage audits;
4. A licensing scheme for labour hire companies to force compliance with existing labour laws; and
5. New laws to protect Sunday penalty rates in all state awards and agreements.

This comprehensive package will help to protect the wages and conditions of young workers.

Comments attributable to Paul Scully MP:

“In Wollongong we have seen the systematic exploitation of young workers in the workplace and Labor understands that when this takes place governments must intervene.

“For too long we have seen vulnerable workers being cheated out of wages and this has to stop.

“Locally we have seen that some businesses are not making mistakes but deliberately exploiting the system for their gain at the expense of the wages and conditions of young workers.

“Labor’s plan will not apply to genuine mistakes but it will introduce a tough set of laws that will attract heavy fines and jail terms for unscrupulous employers who routinely exploit their workers.

“When the situation in a number of businesses in Wollongong was revealed it was not only workers who were being cheated, but also businesses who are doing the right thing and suffering in the face of unfair competition – these laws will provide some certainty for those businesses too.”