Watchdog to probe underpayment claims on Degraves St

THE Fair Work Ombudsman will investigate allegations five cafes on Melbourne’s iconic laneway, Degraves St, have been underpaying their workers as more workers come forward detailing claims of being short-changed.

THE workplace watchdog will investigate allegations five cafes on Melbourne’s iconic Degraves St have been underpaying their workers.

More workers have come forward detailing claims of being short-changed after the Herald Sun on Monday revealed major underpayment claims.

The accused businesses — Degraves Espresso Bar, The Quarter Little Cupcakes, Xpressomondo and RMB Cafe — deny underpaying staff.

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A Fair Work Ombudsman spokeswoman said the watchdog would be “conducting inquiries relating to businesses” on the street.

Jess Walsh, state secretary of the United Voice union, said she was pleased the ombudsman would investigate venues “up and down Degraves St”.

Olly Lawrence, who worked at The Quarter from April 2017 until a couple of weeks ago, said she was never paid overtime or penalty rates.

As a manager at the cafe, she said she was paid $23.50 an hour and claimed other staff were paid cash-in-hand.

The Herald Sun has obtained photos of envelopes filled with cash, marked with employees’ names.

“Whenever you would raise the issue of pay, it was shrugged off and rebutted with the statement: ‘We pay better than most’,” she said.

The workplace watchdog will investigate allegations five cafes on Melbourne’s iconic Degraves St have been underpaying their workers. Picture: David Caird

A supervisor at The Quarter denied staff were underpaid: “Why didn’t she complain at the time? Why didn’t she say I’m not OK with it, I’m not going to take the role?”

Gabriella Wisker worked in various front of house roles at RMB Café for five months last year and said she was paid $15 per hour.

Ms Wisker, who had just moved to Melbourne from Boston in the US, estimates she was underpaid $10,768.50.

A manager at RMB Cafe declined to comment.

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