Alleged wage theft and worker exploitation at Fun Tea Gouger Street could be ‘tip of the iceberg’

Video of a woman being assaulted at an Adelaide bubble tea store allegedly over wage theft is just the “tip of the iceberg” of a much wider problem.

Shocking footage of an assault allegedly sparked by wage theft at a city business is the tip of the iceberg for worker exploitation across the state, an expert says.

Modern slavery researcher Dr Katherine Christ, who also lectures in business and accounting at UniSA, said examples such as allegations of underpayment at Fun Tea Gouger Street was often a slippery slope for more extreme versions of employer exploitation in many businesses.

“It’s great to see this girl is standing up for her rights, but unfortunately a lot of people won’t, and I think that’s a problem particularly in the migrant and international student populations,” Dr Christ said.

“I think they're especially vulnerable when it comes to unethical work practices.”

CCTV emerged of the violent attack at the bubble tea store last week, where a woman was assaulted after an argument over alleged wage theft.

A 39-year-old Glen Osmond man, said to be a customer, was arrested on Tuesday evening and charged with assault. He is set to appear in court in May.

The victim, a 20-year-old Rose Park woman, said via industrial rights advocacy group Working Women’s Centre SA that she was asking about unpaid wages before she was hit.

In a statement, Fun Tea rejected claims the assault was related to the Gouger St business and wages.

A large crowd rallies on Moonta Street, Chinatown outside Fun Tea to protest wage theft. Picture: Tricia Watkinson

Dr Christ said a common scenario in wage theft saw workers agreeing to work cash-in-hand, because visa holders were allowed to work only a certain amount of hours each week.

“What can happen … is the boss then has something to hold over them.

“Suddenly they find themselves in a position where they're being blackmailed.”

Dr Christ said the alleged assault could uncover widespread employee mistreatment.

“This would absolutely be the tip of the iceberg … In a way it’s good that this video came to light because it can hopefully make people more aware.”

She said more could be done to educate people entering SA on worker’s rights.

“We have to encourage almost that whistle blowing … we’ve got to make them aware, perhaps (of) anonymous whistleblowing services where they can ring or get advice.”

Fair Work Ombudsman Sandra Parker has launched an investigation into the underpayment allegations at Fun Tea.

The rally in Adelaide's Chinatown to protest against wage theft at the weekend. Photos; Tricia Watkinson

Ms Parker said she prioritised matters involving migrant workers, including international students, because they can be vulnerable to exploitation.

“In 2019-2020, 44 per cent of the matters we put in court involved visa holder workers, and the total amount recovered for visa holders was $1.7 million,” Ms Parker said.

She said an agreement with the Department of Home Affairs allowed visa holders to ask for the Ombudsman’s help without fear of their visa being cancelled.

Two rallies were held in the Adelaide CBD this week protesting wage theft after the video’s release.

Labor spokesman Kyam Maher called for more effective mechanisms to protect vulnerable workers after the video came to light.

A Bill before federal parliament from Industrial Relations Minister Christian Porter would enforce a criminal penalty for deliberately underpaying workers, penalised by jail time of up to four years and fines of up to $5.5 million.

Mr Porter said the new legislation would mean significant new protections against exploitation for all Australian workers, including migrants.

However Mr Maher said he applauded federal Labor for opposing the bill, saying it would see low-paid workers worse off with wage negotiations.