Mantle Group’s ‘archaic, unconscionable’ zombie agreement terminated

A ‘zombie agreement’ put in place by Queensland’s largest hospitality group 22 years ago has been terminated by the Fair Work Commissioner after being labelled ‘archaic and unconscionable’.

A two-decades-old “zombie agreement’’, that deprived employees of Queensland’s largest hospitality group of penalty rates, has been described as archaic and unconscionable by a Fair Work Commissioner.

Commissioner Jennifer Hunt on Thursday ordered Mantle Group Hospitality’s 22-year-old staff services agreement to be terminated from June 9.

She said the effect of the employer having the benefit of an agreement made in 1999, without paying employees penalty rates, at least in the last decade, was “a disgrace’’.

“I consider it necessary for a light to be shone on these kinds of archaic arrangements,’’ Commissioner Hunt said, in a decision scathing of MGH’s agreement.

The hospitality group, owned by millionaire Godfrey Mantle, will now have to pay award penalty rates to employees.

Godfrey Mantle of the Mantle Group.

“For more than two decades the employer has had the benefit to it, and to it only, in depriving employees of payment of penalty rates for work performed at night, on weekends and on public holidays,’’ Commissioner Hunt said.

She said it provided “no benefit to employees at all’’.

“The effect of employees working without payment of penalty rates is staggering,’’ Commissioner Hunt said.

She said casual level one employees lost more than $11 an hour for working on Sundays, compared to the award rate.

Jimmy’s On The Mall in the Queen Street Mall, run by Mantle Group. Picture: David Clark

On public holidays, the loss to a casual level one employee was in excess of $26 per hour.

“It is difficult to understand how an employer could have, for so many years, knowingly deprived a large number of employees of penalty rates, to which they would have been otherwise been entitled under the relevant award, simply because it lawfully could do so, the Commissioner said.

The employer paid one worker $28 an hour and an extra two dollars an hour on weekends.

Commissioner Hunt said paying two dollars an hour was not demonstrating any benevolence.

“In my view it is unconscionable this arrangement has continued in place without an application by the employer to terminate the agreement,’’ she said.

The Commissioner also was critical of the employer, which originally told the Commission it had 143 workers under the agreement, moving some onto another agreement.

That agreement invited workers to sign away their entitlement to penalty rates.

MGH runs many well known venues, including several Pig ‘N’ Whistle British pubs and Jimmy’s on the Mall, in Brisbane’s Queen St.

Henry Thom took the Mantle Group to the Fair Work Commission. Picture: Supplied

Jimmy’s on the Mall casual duty manager Henry Thom, 25, represented by law firm Maurice Blackburn, took on the hospitality giant in the Commission in March, in an application to terminate the agreement.

In May, the employer told the Commission it no longer opposed the application.

Maurice Blackburn principal Giri Sivaraman said it was a significant decision, which highlighted the need for legislative change and a sunset clause in all such agreements.

“The Commissioner has drawn a line in the sand. You can’t have employees relying on unfair, morally repugnant agreements that are just designed to deprive workers of penalty rates,’’ Mr Sivaraman said.

“The Commissioner pointed out the company should have had the intestinal fortitude to apply to terminate the agreement, but every time a worker made an application, the company fought it at every turn.’’

Alex Knott, centre, with Giri Sivaraman of Maurice Blackburn, left, and United Workers Union organiser Martin De Rooy. Picture David Clark

United Workers Union organiser Martin De Rooy said MGH deliberately employed young workers on zombie arrangements at high profile Brisbane venues for 22 years, depriving them of penalty rates and other conditions.

“These young workers have terminated an agreement that’s older than them,’’ he said of Mr Thom and Alex Knott, a former MGH employee who filed another application to terminate the agreement.

Mr Knott, who worked for Milano restaurant in Brisbane’s Queen St Mall, for more than a year, said he was effectively dismissed after he complained about being underpaid and his casual shifts were cut.