A post I wrote yesterday about convenience store competition in Sydney has become a discussion about pay rates and an argument about whether newsagents pay award wages.
Three commenting on the post say newsagents do not pay award wages. One, Burgess, goes further saying: Bet you London to a brick for each newsagent who pays his staff award wages, there are atleast ten others who pay less than award wages, this is so especially in major urban areas . To feign ignorance or to suggest only a small number entertain such devious measures, is being a bit simple and also extremely naive.
Chandra follows this comment with: Totally agree with you Burgess. It’s not only newsagents but I dare to say that majority of small businesses are doing it.
These comments damage our the newsagency channel and small business retailers generally.
When you start or purchase a business you accept the obligation to operate lawfully. Every payslip, BAS, tax return, payroll tax return … they are all statements from you that you fulfil your lawful obligations.
If you pay less than the award rate to any employee I hope you are caught and prosecuted.
If you know of newsagents paying under the award rate or paying employees off the books, report them. Do not let their illegal behaviour damage the reputation of our channel.
There are no excuses for ignorance. We all have easy online access to award rates and government mandated employee terms and conditions. There are no excuses.
If you underpay employees or scrimp on your obligations such as demanding they pay for uniforms you require them to wear you are asking for trouble for your business not only from government but also from the employees themselves as your own behaviour toward them invites them to treat you in a similar unethical way. Don’t complain if they steal from you.
But back to the purpose of this post: Do newsagents pay under the award rate? I say it is not as widespread as Chandra, Dean and others say. I have heard of it and have spoken to the newsagents I have heard of it about. I have not heard of it being widespread.
I’d love newsagents to comment on this. If you pay the award, say so. If you don’t, say so.
Chandra claims the majority pay under the award. Burgess says for each paying the award ten pay under the award. Dean said many newsagents don’t pay the award. Are they right? Do you want their opinions left on the record as representing your newsagency business?
We want customers to trust us. We want governments to support us. We want national suppliers to use us ahead of supermarkets and others. These positions are earned through respect and our own social responsibility. Are we as a channel socially responsible?
Mark, I should clarify my comment about many newsagents not paying the award rate relates to home delivery drivers. While I have heard of it happening to shop staff, I think it is not as common as with drivers
We pay the award. Our staff have to calculate their own income for the week. They list their hours and then they use the Government produced awards sheet to calculate their pay. Once they have done this the owners check it to make sure it is correct before paying the employee. It comes done to business ethics, employees are a stakeholder in your business and deserve to be treated this way. If you want to operate a successful business then they are your most important asset.
I am extremely disappointed to read the posts from the connected story.
Chris, I also pay the award. When talking to newsagents about driver wages they can’t believe how high my wages are. When they tell me what their wages are per hour and they pay off the books, I realise the many thousands of dollars they are stealing from their employees every year is massive. While I would love to save the cash and put it towards my loans, I am not prepared to take the risk of getting caught.
Dean I agree with your comments re distribution. It is more likely there. Ten years ago I did this at the request of the early morning manager. We treated him as a contractor and that is how he handled it from a tax perspective.
We pay the award rate it’s an easy way to ensure you get quality employees (amongst other things).
Actually I thought about this overnight and when I hired two casual girls who had been working at another newsagency previously and paid them at the end of their first week they questioned me if I had overpaid them because they had received more from me (who pays the casual award wage) than working for a longer period at their previous employer who obviously wasn’t paying the award wage ! I also have a mate who works for a large retail franchise and he recently found out that he hadn’t been paid the correct Saturday penalty rates for over 7 years, nor had his super been correctly paid. So as much as I would like to think it isn’t prevelent maybe it is more common than we think.
Fairfax newspapers were instrumental in exposing the underpaying at 7-eleven franchisees and laid a lot of the blame at the feet of the Master Franchisee due to a business model which made it near impossible to pay award wages.
As a follow up maybe a Fairfax journalist could look at the underpaying of newspaper delivery drivers and lay the blame at the feet of newspaper publishers (like fairfax)who set delivery fees at levels that make it impossible to pay award wages.
Come on Fairfax Journo’s your guaranteed editorial independence, so you have nothing to fear exposing duplicity in your own employer.
These comments are typical Twitter style comments, made by people with no real knowledge – ignore them.
Brett they are out there and discoverable. The best approach is to respond with facts that speak to how professional newsagents behave.
Beside the issue of ethics above with I agree with, if you are caught paying under award rates first Fairwork (NSW) will have a go at you than the Taxman for what ATO construes as unpaid taxes. To fight thus means a hell of a lot of expenses. If Money is to be recovered, say Taxes they will go to the Newsagent first as the Newsagent will be easier to collect from that an individual.
The usual process to trigger this process an employee current or ex complains to Fairwork with any evidence they have, hours worked, pay dockets or lack of etc. If Fairwork considers it worth pursing then they will. More often than one complaint will trigger action by Fairwork.
With 7 11 no employees want to complain as they are sacred they will loose the Visa to Study in Australia as 7 11 encouraged them to work over 20 hours a week most students visa limit. Between the old Rock and a Hard Place.
The major issue i see with payment of delivery drivers is that if they start before 0500 than they are paid at shift workers rate (Mon to Fri) in NSW about 6.50 extra an Hour. I roster my delivery staff for a 0500 start 5 days a week and 0430 start 2 days a week at shift workers rate. i do because my Local paper prints two days a week and a 0500 start would not allow for deliveries to be done at a satisfactory time.
Mark,
There are grubs everywhere, big business and small business alike – I have hired from big business where their super wasn’t being paid.
We will not solve it here nor improve it.
I took the name of the company she worked for and reported them, we all should do that.
Brett this post gives newsagents who are doing the right thing to say so, to counter what others have said.
You pay peanuts, you get monkeys!
We are retail only. We have and always will pay award rates. We sometimes pay over the award to keep good staff. That is a personal choice and we find that in the longterm it is to the benefit of the business. Happy staff, happy workplace!
I agree with Steve (comment 7).
We quit home deliveries covering a substantial area because it was not possible to do so paying award rates and not lose money.
I know of plenty of newsagents who pay cash in hand, sub-contract their run or simply do it themselves and don’t get paid….because they can’t make money doing it and paying people the correct wage.
Only idiot retailers don’t pay the award. Name and shame.
I have always paid “above” award wages. I figured that by paying a level up (which equates to only a few cents more) I will be covered should any queries ever be made against me. And as Amanda says….pay peanuts….get monkeys.
I really do not know if this issue is widespread amongst Newsagents, either Retail or Distribution only.
What I do know, and this speaks to the 7/11 model/culture/blight is that I am constantly (say weekly) being bombarded with requests for jobs from 24 hour servo employees. This usually happens after they have spoken to my employees and done some wage comparisons.
Here’s the thing. When these 24 hour servo employees speak with me they do so with a mixture of hope and incredulity. It’s the astonishment that is telling. They ask me why I would WANT to pay wages that are so high? Some look closely at me when asking such questions. I have wondered later whether they were testing my sanity. (this bloke has to be fark’n nuts!!!).
So these generally good young students from the Sub-continent have no idea what the go is in respect of wages.
Or perhaps it’s a case of they are comfortable approaching me because it’s so obvious that I hire Indigenous Australians.
One of the things they learn from me is that I am enjoying working with very happy and reliable staff who are hoping to work for me for many years to come and that I have no positions available.
Having said all of that, I am aware of a couple of delivery newsagents that utilise sub-contract terms for hiring that gives them great financial advantages over people doing the right thing and I know that some people who work for Fair Work Australia do absolutely nothing to assist nor facilitate employees who are trapped in this position. All they do is put it all back on the young person to ‘mediate’ with the employer. (Huh – he says with a sneer).
Paying Award wages does not mean Employee’s calculate their own income this is commission base payment systems,
Under the state and federal awards wages it is the responsibility of the Business owner/ employer to ensure staff is paid according to the award and tax with held accordly,
it is also the right of employees to have their uniforms provided, all overtime for paid for after the first 30 minutes it is also the Business Owners/ employers who are responsible to ensure work place premiums are up to date and payment of superannuation is maintain while the employee is retained within the work place,
The only business in Australia that does not have to abide by this law is the Taxi industry because most judges, Politicians are both investors and owners within the taxi industry not just here but aboard as well.
I recently started working at new newsagency in NSW. The 2 week training period was free, I’ve been told no written contracts and I get $15.00 an hour despite having no real lunch breaks (Have to call a security guard/cleaner to come and mind the store, I get in trouble if I don’t return in 10 minutes) My trainer told me that I’m not allowed to get pregnant because it isn’t fair on them and I should consider giving them at least heads up before contemplating having kids so they can replace me. I really need a job and have no qualifications or skills in anything. Super desperate. My spirit is really broken because my trainer keeps threatening me that I won’t have the job or jokes with “or its death.” If I don’t improve. What can I do???
Cruz for concerns like you have outlined, contact the Fair Work Ombudsman: http://www.fairwork.gov.au. You would be employed under the General retail Award. Access it here: https://www.fairwork.gov.au/ArticleDocuments/872/general-retail-industry-award-ma000004-pay-guide.pdf.aspx You get paid for training and there are mandated breaks. Threats in a workplace against an employee are not permitted.
Cruz, I agree with Mark, contact Fair Work. Also if I was you, I would be looking for a new job