Network 10 stands by George Calombaris amid union calls to axe MasterChef judge

The network declares its support, amid calls for the chef to be dumped over unpaid wages.

The restaurant empire founded by George Calombaris has been forced to repay workers $7.8 million in lost wages. Picture: Nicole Cleary

Network 10 has declared its support for celebrity chef George Calombaris after unions demanded his dumping from MasterChef over the $7.8 million underpayment of 515 workers.

“George and MAdE Establishment have reached an agreement with the Fair Work Ombudsman in relation to this matter,’’ a Network 10 spokeswoman said. “George has the support of Network 10. We will not be making any further comment.”

Mr Calombaris’ restaurant empire backpaid $7.8 million in unpaid wages and superannuation to 515 workers and was fined $200,000 under a deal with the Fair Work Ombudsman.

ACTU president Michele O’Neil told The Australian that Mr Calombaris should be removed from MasterChef.

“Channel 10 and the sponsors of the MasterChef program need to consider the damage to their brand caused by their continued support for a serial wage thief,’’ she said.

Unions NSW Secretary Mark Morey said stronger laws against wage theft were needed as dodgy employers currently got “a slap on the wrist’’.

“We also need a profound cultural shift. As a society we need to make it clear that wage theft is repugnant. MasterChef can assist that by giving Calombaris the boot.”

Hey @masterchefau, we know you don’t support chefs ripping off their workers, and that you would never endorse a chef underpaying their staff millions of dollars. So why is Calombaris on your payroll?

It’s time to drop the Masterthief from Masterchef. https://t.co/BlKmzGNbzU

— Unions NSW (@unionsnsw) July 18, 2019

Unions NSW tweeted: “Hey @Masterchef, we know you don’t support chefs ripping off their workers, and that you would never endorse a chef underpaying their staff millions of dollars. So why is Calombaris on your payroll? It’s time to drop the Masterthief from MasterChef.”

The extent of the underpayments is much higher than previously disclosed and is a major embarrassment to the celebrity chef and MasterChef judge, who will be required to give speaking engagements about complying with workplace laws.

Mr Calombaris apologised to former and current staff affected and said he was committed to “playing his part in helping influence positive change in the hospitality industry”.

“We apologise to all our affected team members, past and present — as it is our people that make our restaurants great, and it is our priority to ensure all of our employees feel respected, rewarded and supported in their roles,” he said.

“We are committed to acting as a force for change in the industry and leading by example when it comes to building and promoting supportive, healthy and compliant hospitality workplaces.”

MAdE Group Chief Executive Officer, Leigh Small said all current team members were now correctly classified and new processes and procedures had been put in place to further strengthen the group’s reputation as an employer of choice.

“All current MAdE team members have been correctly classified, and all entitlements verified as owing to current and past employees have been calculated and paid, with a handful of claims now being finalised,” he said. “Since changing ownership, we have introduced a new CEO, a new People and Culture Director and new processes and procedures to ensure we’re not only complying with workplace relations laws but actively promoting a culture of employee wellbeing.

“We look forward to continuing to grow our business and providing all team members with the tools, education and environment to succeed in their careers for years to come.’’

Full extent of underpayments revealed

Fair Work Ombudsman Sandra Parker revealed today the agency had entered into an enforceable undertaking with MAdE Establishment following ‘self-disclosure’ of the massive underpayments at Press Club and Gazi restaurants in the Melbourne CBD and the Hellenic Republic restaurants in the suburbs of Kew, Williamstown and Brunswick.

The FWO extended its investigation to some restaurants operated by Jimmy Grants, a company which shares common shareholders and directors with the MAdE group of companies.

Mr Calombaris is a founding and current shareholder of MAdE Establishment, who served as a director from 2008 to last year.

Fair Work inspectors found significant underpayments at the MAdE group of companies occurred because they failed to correctly apply annualised salary arrangements for some staff, including by failing to conduct annual reconciliations to check that workers on annual salary arrangements were paid for overtime and penalty rate hours worked.

Inspectors found the MAdE group companies and some Jimmy Grants sites did not pay some staff at the correct classification level for their duties under the Restaurant award, which particularly affected casual employees.

MAdE Establishment backpaid $7,832,953 to 515 current or former employees of Press Club, Gazi and Hellenic Republic for work between 2011 and 2017. A further $16,371 has been backpaid to nine employees of Jimmy Grants.

Fair Work Ombudsman Sandra Parker said that the EU would ensure improved wages and record-keeping practices were locked in at the MAdE group.

“The court-enforceable undertaking commits MAdE Establishment to stringent measures to ensure that current and future employees across their restaurant group are paid correctly,” Ms Parker said.

“MAdE’s massive back-payment bill should serve as a warning to all employers that if they don’t get workplace compliance right from the beginning, they can spend years cleaning up the mess.”

Under the EU, Mr Calombaris will complete speaking engagements to educate the restaurant industry on the importance of workplace compliance.

MAdE Establishment will also make a $200,000 contrition payment to the Commonwealth Government’s Consolidated Revenue Fund. The company must fund external auditors to check pay and conditions for workers across the entire group every year until the EU expires in 2022.

“The Fair Work Ombudsman is cracking down on underpayments in the Fast Food, Restaurant and cafe sector, and we urge employers to check if they are paying their staff correctly,” Ms Parker said.

Unions, former workers react to punishment for ‘wage thief’

Former worker Orlaith Belfrage also called for Mr Calombaris to be dumped from MasterChef.

“A fine of $200,000 is nowhere near enough — that’s less than three per cent of what he took,’’ Ms Belfrage, who now works for the digital union HospoVoice.

“He should be properly punished and this is why criminalising wage theft cannot come soon enough. George should pay a serious price for this massive theft of workers’ wages. He should be taken off MasterChef. How many more excuses does George get?”

Ms Belfrage said she worked at the Hellenic Republic in the northern suburb of Brunswick for about two years.

She started as a full time employee but after about six months of not being paid overtime she decided to transfer to casual employment.

By her estimation, she is owed between $3500-$4000 by not being paid overtime and being put on the wrong award.

She said she received $700 last year in backpay.

Jo-anne Schofield, national secretary of United Voice, the union representing hospitality workers, said she was “truly shocked at the full extent of wage theft at MAdE Establishment”, and the $200,000 fine was not sufficient.

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

“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”. And you get to keep your TV show, your huge profile and mansion and keep raking in cash off the back of

hardworking chefs, wait staff and bartenders.

“All the while you’ve also been campaigning to slash the penalty rates for all hospitality workers. The name “wage thief” should be attached to George Calombaris’s name in every article, television promo or restaurant review he’s featured in.”

Victorian Legislative Council member Andy Medic said Mr Calombaris should face criminal charges.

“If we put the shoe on the other foot, if this had been the employees reaching around and taking this money out of the till, they would certainly be facing criminal charges — they’d be looking at jail time,” the Animal Justice Party member said.

“It should be a criminal offence and Mr Calombaris and his cohort should be looking at jail time.”