Caltex boss: wage underpayment rife across economy

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By Leith van Onselen

Another day, another report on the systemic underpayment of workers. From The Australian:

Caltex chief Julian Segal says underpayment of staff is a national issue not restricted to franchise operators and says 45 per cent of the company’s 433 franchise sites were non-compliant.

Segal told The Australian: “I would welcome a parliamentary inquiry into this issue to clear the matter up and get the facts on the table; it is a serious national issue.”

Nationals senator John ‘‘Wacka’’ Williams is the only politician who has consistently urged such an inquiry.

Segal says the underpayment issue was far wider than just franchises, as is often presented.

Fair Work Ombudsman (FWO), Natalie James, told Fairfax in August that people on visas continue to be exploited at an alarming rate, particularly those with limited English-language skills. It was also revealed that foreign workers are involved in more than three-quarters of legal cases initiated by the FWO against unscrupulous employers.

Sadly, there are now entire business lines, firms and sectors across Australia whose business models rely heavily on the systematic undermining of wages and, worse, running virtual slave labour.

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We have seen this in fast food, convenience stores, agriculture, building, accounting, IT, engineering, transport, the gig economy and no doubt it is even more widespread.

Anyone claiming that mass immigration isn’t helping to suppress wages has rocks in their head.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.