Hospitality workers say Covid has exposed how reliant industry bosses have been on exploiting migrant workers by paying them low wages.
This week a hospitality job listing offering wait staff below the minimum wage caught the attention of hospitality workers' advocate Chloe Ann King.
The Seek job listing for the Palmerston North Cosmopolitan Club said it was after waiting staff to work 25 to 30 hours to be paid an hourly rate of between $15 and $24.99.
Ann King said she wasn't surprised by the listing because "the vast majority of hospitality employers do not have basic understanding of our employment law".
Palmerston North Cosmopolitan Club manager Desiree Garrigan told Newsroom it was all a "misunderstanding", and insisted she intended to pay staff the minimum wage of $20 an hour. Seek's toggle bar didn't allow her to select the $20-$24.99 range, she said.
But moments after speaking to Newsroom, the pay rate on the listing was amended to $20-$24.99.
"Staff will start on minimum wage because they're unknown and once they prove themselves then I look at the pay rates," she said. "I don't pay youth rates and I don't pay staffing rates, everyone starts on the same rate."
Garrigan said she had used this listing before with the same pay rate as she claims its the only option but had no issues before. "It's absolutely ridiculous because that is the only option you can choose in Seek," she said.
Garrigan also said she had received 17 applications within three days of the listing being live, even though it offered a pay range starting at below the minimum wage.
"Not only do we have incredibly low wages in the industry, wage theft is a business model. Breaks you never took being docked, your annual leave not being correctly accrued." – Chloe Ann King, hospitality worker
Ann King has worked in the hospitality industry for 16 years, and despite that, says she is still offered minimum wage or slightly above.
"Not only do we have incredibly low wages in the industry, wage theft is a business model. Not only are you being paid minimum wage or slightly above your employer is very likely stealing off you," Ann King says. "Breaks you never took being docked, your annual leave not being correctly accrued."
Ann King says the legal system doesn't penalise businesses for exploiting workers or treating them badly.
"Docking wages can't be criminally prosecuted. The employer can steal hundreds of thousands from the workers over years and the most they receive is a penalty from the Employment Relations Authority, which is lower than what they stole.
"There are almost no risks and consequences to exploit, and it's incredibly lucrative to steal your workers' wages, their annual leave and their Kiwisaver and tips."
Ellsie Cole has worked in hospitality for six years.
Cole says hospitality workers aren't paid enough for the work they do.
"We have to be polite and hospitable while our pay is being docked, customers are being abusive, we're not having breaks. It's really common to have indefinite working hours and shifts that change," Cole says.
"I don't think recommend hospitality as a career to others. If I had children, I wouldn't want them working in hospitality."
The 20-year-old says the pandemic has exposed how reliant hospitality employers have been on migrant labour.
"Migrants just have a different work ethic to Kiwis. They're used to working in much busier environments."
Hospitality employers have been campaigning for months to open borders and allow more skilled migrants into the country.
"Not only do we have incredibly low wages in the industry, wage theft is a business model. Not only are you being paid minimum wage or slightly above your employer is very likely stealing off you." – Chloe Ann King, Raise the Bar.
Cole says because many migrants also feared losing their visas, making them less likely to complain about their work environments.
She says if businesses want more Kiwis to join hospitality, then employers should be prepared to pay more and improve working conditions.
"Employers want trained staff but don't want to pay too much for experienced staff either.
"I've been told I'm overqualified for jobs. I've worked as a manager and the pay was still $27, and it's not enough for the responsibility or skills you need to be in that role."
She says, the biggest cost to business are the overheads.
Instead of skimping on paying staff correctly, the industry should band together to demand rent control and lower food prices, she says.
"Because employers can get by with fewer staff but not without paying rent that they skimp on increasing wages for workers. People in hospitality are burnt out."
Cole says with fewer people working in hospitality, the current employed workforce is stretched.
"Employers need to be hiring more people on casual contracts, pay for over time and extra pay for working weekends or nights like in Australia.
"I don't think recommend hospitality as a career to others. If I had children, I wouldn't want them working in hospitality."
Globally hospitality employers are struggling to attract talent in the low wage industry.
In the United States, for instance, companies are increasing menu prices to attract workers through better wages. Many workers left the hospitality industry and have not returned as they were receiving more money through government stimulus checks than when they were working in the industry.
Ann King says if Kiwi restaurants raise the prices of food and advertised they were doing so to support their staff, chances are customers would respect that.
"I don't think anyone wants to eat someplace where staff are being exploited and not given their minimum entitlements."
She says Covid has tipped the job market in favour of workers.
"This is absolutely the time to bargain for what you're worth."
Ann King says workers shouldn't fear holding employers accountable for wage arrears.
"You have six years to raise a wage arrears claim. Employers are legally required to hold on to wages for seven years."
