Calombaris scandal a ‘mess’: MasterChef judge pays back staff owed $7.8 million

Celebrity chef George Calombaris has pleaded for Australians to understand he’s not a wage thief, after today’s $8 million underpayment scandal. And he says keeping his MasterChef role could be “a force for change.”

Under-fire MasterChef host and ­celebrity restaurateur George Calombaris has pleaded for Australians to understand he is not a wage thief, after his food empire had to fork out almost $8 million to underpaid workers.

Speaking exclusively to the Herald Sun as the hefty bill was revealed, ­Calombaris rejected claims that years of underpayment were deliberate. He said he had tried to do the right thing at all times.

— Scroll down to read the full statement

“I am deeply sorry for what has happened, and have apologised to our affected team members, past and present,” he said.

“There are two important things for Australians to know. The first is that when we discovered there were incorrect payments to members of the team, we self reported to the Fair Work Ombudsman and co-operated with their investigation,” he said.

“The second is that our team members, past and present, have been back-paid in full, and the vast majority repaid before October 2017 in consultation with Fair Work.”

Under-fire Calombaris in happier times, Picture Rebecca Michael.

Calombaris said mistakes were made as his empire grew.

“There is no excuse for this and we have the ­systems in place now,” he said.

His MAdE Establishment group has paid 515 current and former ­employees $7.8 million, after an investigation into payments made to workers between 2011 and 2017.

This is a massive leap on the initial estimate of $2.6 million owing, ­revealed by the Herald Sun in 2017.

Calombaris admitted MAdE funded the huge sum owed “with contributions from me and other directors”.

MAdE has also been fined $200,000, with the “contrition payment” going to a Commonwealth fund.

HOW THE CALOMBARIS STORY WENT SOUR

His MasterChef employer Network 10 is standing by him, with a spokesman saying: “George has the support of Network 10.”

Calombaris said he did not think of closing the empire or walking away from MasterChef as the controversy unfurled.

“No. Never. My focus has been on my team, on co-operating fully with the Fair Work Ombudsman and ensuring all team members who were owed entitlements were back-paid in full,” he said.

He said his message to his customers and those who watched him on TV was that his business could now be “a force for change in this industry”.

George Calombaris at his up-market Press Club restaurant.

But the ACTU said he should be ­removed from MasterChef. And the hospitality union United Voice claims ­Calombaris should be forever referred to as a “wage thief”.

“We are truly shocked at the full extent of wage theft at MAdE Establishment. For the seriousness of this crime, a $200,000 fine is not sufficient,” United Voice national secretary Jo-Anne Schofield said.

“If someone deliberately took $1000 out of someone else’s bank account, there would be a high likelihood of a criminal conviction for theft.

“But when you’re a multi-millionaire restaurateur/celebrity chef you can take $7.83 million in wages from your workers and get away with a “contrition payment”.”

Former Hellenic Republic employee Orlaith Belfrage posted on social media Calombaris needed to “pay a serious price” and be “taken off MasterChef”.

“He should be taken off MasterChef. How many more excuses does George get?,” she said.

“Because the case has gone on so long, many former staff won’t ever get to recover their money.”

The George Calombaris scandal first emerged two years ago. Picture: Nicki Connolly

The tough scrutiny is not over, with MAdE committing to three years of audits to double-check classifications, after an already intensive two-year Fair Work Ombudsman investigation.

Another outcome requires Calombaris, 40, to make public speeches to “educate the restaurant industry on the importance of workplace compliance”.

The action comes after Fair Work revealed it was examining alleged underpayment at restaurants run by Heston Blumenthal, Neil Perry, Guillaume Brahimi and Teage Ezard.

At the same time, there have been claims against trendy Vietnamese fusion venues Hochi Mama and Straight Outta Saigon.

It is understood Calombaris and MAdE Establishment chief Leigh Small fronted 50 of the organisation’s most senior staff to brief them about the shock revelations.

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Calombaris on MasterChef with Curtis Stone and Gary Mehigan

Fellow MasterChef host Matt Preston is sticking by his colleague.

“For me the most important thing is that workers are back-paid when an error occurs — as George has done,” he said.

Preston added that underpayment of staff was a “massive issue across Australia … across everywhere”.

READ THE FULL STATEMENT

Do you believe Australians think you are dishonest and that you deliberately underpaid your staff?

There are two important things for Australians to know. The first is that when we discovered there were incorrect payments to members of the team, we self-reported to the Fair Work Ombudsman and co-operated with their investigation. The second is that our team members, past and present, have been back-paid in full and the vast majority repaid before October 2017 in consultation with Fair Work.

How have you funded the $8 million?

MAdE Establishment funded the back-payments with contributions from me and from other directors.

Have you discovered how you took your eye off the ball that it allowed it to get this bad?

When we started as a small business we did not have the necessary systems and processes in place, particularly as the business grew. There is no excuse for this and we have the systems in place now. We have committed to three years of audits to double-check our classifications, and we’re providing our team with training programs to make sure we have the right skills to classify staff correctly.

What’s your message to Australians who eat in your restaurants and watch you on MasterChef?

My message is that MAdE Establishment now has the systems, processes and culture to be a force for change in this industry. My priority was to pay everyone back which we have done. I am deeply sorry for what has happened and have apologised to our affected team members, past and present. But I believe actions speak louder than words, which is why we self-reported to Fair Work, we fully co-operated with the investigation, we paid everyone back, and we’re now continually improving the processes and procedures necessary to ensure we are best practice in the industry.

Did you think of closing your restaurants and walking away from Masterchef during the darkest days of this?

No. Never. My focus has been on my team, on co-operating fully with the Fair Work Ombudsman and ensuring all team members who were owed entitlements were back-paid in full. We’ve now done that, we’ve improved our processes, and we’re committed to being a force for change.

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