Cafes and eateries in iconic Melbourne laneway accused of underpaying staff

FIVE cafes and restaurants on an iconic Melbourne laneway have been accused of short-changing their workers in a major underpayment claim made to the workplace watchdog.

FIVE cafes and restaurants on Melbourne’s famous laneway, Degraves St, have been accused of short-changing their workers in a major underpayment claim made to the workplace watchdog.

A worker at one eatery was allegedly paid $11 an hour as a number of venues on the street are accused of flouting labour laws.

Payslips, bank account transfers, rosters and photos of cash payments — obtained by the Herald Sun — suggest workers have been underpaid at least $50,000.

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The accused businesses — well-known cafes and eateries Degraves Espresso Bar, The Quarter, Little Cupcakes, Xpressomondo, and RMB Cafe — deny underpaying. The United Voice union will today call on the Fair Work Ombudsman to raid venues, after making a complaint to the watchdog on Friday.

United Voice state secretary Jess Walsh said authorities needed to launch a full-scale investigation into the allegations.

“It’s hard to find a tourist brochure that doesn’t include a photo of Degraves St. It is the symbol of sophisticated, cosmopolitan Melbourne,” Ms Walsh said.

“Yet little do the tourists who visit this famous laneway know that it’s a meat-grinder that tears through hospitality workers.”

Five cafes and restaurants on Melbourne’s famous laneway, Degraves St, have been accused of short-changing their workers. Picture: David Caird

She said the alleged underpayments affected “the youngest and most vulnerable workers, including people on temporary visas, working up to eight hours straight without a break or food, and for as little as $11 an hour, cash-in-hand and no penalty rates”.

The complaints include:

A MANAGER at a cafe who claims she was underpaid $18,619 in wages and super­annuation;

A CAFE worker who says she was paid just $15 per hour and estimates she is owed $11,791 in wages and superannuation;

ANOTHER cafe allegedly paying a 16-year-old worker $11 per hour cash-in-hand, with no penalty rates; and

TWO workers at a cafe who say they are owed $9350 in wages and superannuation.

Maggie Stecher-Keyland started working Degraves Espresso Bar as an 18-year-old and says she was paid as little as $14 per hour in 2016.

According to a complaint made to the Fair Work Ombudsman, she should have been paid $16.55 and was underpaid $18,636.87.

When asked by the Herald Sun whether the cafe was ­underpaying workers, a supervisor said it was “absolutely not true”.

YOUNG WORKERS TOO DESPERATE TO SPEAK UP

A FORMER Degraves St worker says those affected by alleged underpayment on the cafe strip are “desperate” workers who are willing to work for below the minimum wage.

Mya Nipperess began working at Little Cupcakes in April 2017, when she was just 18, serving customers.

She claims she was paid $15.50 per hour, which the store says was within the Fast Food Industry Award.

Mya Nipperess worked at Little Cupcakes and was paid as little as $13 an hour. Picture: Mark Stewart

But Ms Nipperess said she was never paid penalty rates for weekends, public holidays or overtime, and claims she has been underpaid thousands.

“I only asked once or twice for a pay rise. I was young and had just moved to Melbourne and really needed a job,” she said.

“They would just deny that it was the wrong pay.

She wanted to raise the issue but “was too hesitant to speak up and too desperate for money”.

But the owner of Little Cupcakes said Ms Nipperess wasn’t underpaid.

“She was hired on permanent part-time basis … all of her superannuation has been paid into her nominated super fund account,” the owner said.

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