Merivale accused by former staff of exploiting women, condoning drug use

A CCTV video of patrons having sex at one of Sydney’s most well-known venues was shown to staff without warning.

Explicit CCTV footage of patrons having sex in a lift at a Merivale venue was turned into a video and played at a company awards night, a major investigation has revealed.

On Wednesday, the ABC published the first in a damning series of reports against the Sydney-based hospitality behemoth, which operates 81 restaurants, pubs and bars on Australia’s east coast and is owned by Justin Hemmes.

The national broadcaster spoke to female patrons and “dozens” of former staff, who allege Merivale fostered a culture that ”sexualises young female staff”, failed to adequately address claims of sexual assault, and condoned drug use at work.

One former female staff member alleges she was drugged and raped by a colleague but then rostered to continue working with him; another said staff were not “allowed to say no” to customers behaving inappropriately.

A Merivale spokesperson told the ABC the company has “no record of the incidents … described”, and described the questions put to them as “unfair”.

News.com.au contacted Merivale for comment, but was told the company had no further comments to make.

Merivale owner Justin Hemmes. Picture: Brook Mitchell/Getty Images

Explicit CCTV footage of patrons having sex in a lift at a Merivale venue was turned into a video and played at a company awards night, a major investigation has revealed. Picture: ABC

In a new report on Thursday morning, the ABC revealed details of the uncensored CCTV clip, which was played to hundreds of staff on multiple screens at “The Merivales” in 2017, an annual event held at its flagship venue, Ivy.

One of the two former female staff members who shared the video with the outlet said its screening was met with “uncomfortable laughs and sounds of shock”.

“I kind of couldn’t believe what I was seeing,” she said.

The former employee described Merivale as “probably one of the most toxic places I’ve ever worked”.

Merivale, however, defended it as “part of a private, invitation-only, event” and said “no complaints were received about the reel in question”.

“Merivale venues are comprehensively monitored by CCTV, a matter which is notified to patrons and staff with clear signage to that effect,” a spokesperson told the ABC.

“The CCTV covers public spaces in our venue, which is both lawful and standard practice in large hospitality venues.

“It is lawful for Merivale to capture this footage and there can be no reasonable expectation of privacy for any patron attending.

“For the avoidance of doubt, Merivale is not aware of any complaints arising from ‘the Merivales’ in 2017.”

Merivale venue Coogee Pavilion. Picture: Supplied

In one instance reported on Wednesday, a former worker at Coogee Pavilion alleges she was drugged and raped by a colleague at his home one night in 2018.

“He was much bigger than me and he just kind of pinned me against the wall,” she said.

“The whole time I was making it very clear that I wanted him to stop, and he wouldn’t.”

The woman, who was 22 at the time, reported the incident to the company.

Despite having a meeting with Merivale’s head office, she said she was forced to continue working with her alleged perpetrator for the next “month or two”.

Management told her “there’s nothing we can do”, the woman alleges, because she hadn’t filed a police report.

Another staff member at cocktail bar Hemmesphere alleges she was assaulted by two male customers – who were reportedly allowed to stay in the venue even after she reported their “really rapey” behaviour.

“Instead of showing any kind of concern she argued with me, ‘rapey is a really strong term to use’. And so I corrected myself, and I said, ‘Okay I feel like they’re molesting me’,” she recalled.

The former employee said the experience was the consequence of a culture that encouraged female staff “to drink to and flirt” – even if a customer made them feel uncomfortable.

Drug use at Hemmesphere was also “so normalised” and ingrained in the culture, the woman alleged.

“Based on the limited information provided, we are not able to sensibly respond,” a Merivale spokesperson said in response.

“To that point, we need written consent from any employee (current or former) for Merivale to respond to any questions about anything alleged to have occurred during their employment.”

Swillhouse’s Anton Forte and Stefan Forte. Picture: John Fotiadis

Restaurant Hubert, owned by the Swillhouse group. Picture: Justin Lloyd

The allegations against Merivale have emerged weeks after the culture amongst venue staff at high profile Sydney restaurant group, Swillhouse, came under intense scrutiny.

CEO Anton Forte apologised following the expose published last month by The Sydney Morning Herald, which included allegations the group discriminated against women at the company, ousted female staff after they reported sexual assault, and encouraged employees to have sex with patrons and use drugs on duty.

Safe Work NSW has since launched a probe into Swillhouse’s operations.

“We messed up. It’s heartbreaking to know that people were unsupported, unheard and let down. I’m deeply sorry for that,” Mr Forte said in a video shared to Swillhouse’s Instagram on Wednesday night.

“The allegations against us are far reaching, and they reflect a period of time where our business wasn’t as sophisticated as it is now – but we don’t take them lightly, and we respect people’s experiences and their need to share their stories publicly.

“We’ve heard you, we’re listening, and we are accountable.”

This week, Mr Forte said, Swillhouse “brought in” three independent experts in hospitality, culture and leadership, and workplace health and safety “to advise us on how to work differently and how to work better”.

Originally published as Merivale accused by former staff of exploiting women, condoning drug use