VANGUARD - Expressing the viewpoint of the Communist Party of Australia (Marxist-Leninist)
For National Independence and Socialism • www.cpaml.org

 

Wage-theft: an Australian standard business practice

(Source: Sydney Criminal Lawyers)

The Fair Work Ombudsman (FWO) annual report for 2024-25 has revealed the problem of wage-theft has remained widespread despite government legislation; the amounts of unpaid wages, often for lower-paid workers, have been enormous. Serious issues have arisen. The problem has revealed Australian standard working practices for some employers can be regarded as literally indifferent to legal considerations in their race-to-the-bottom mentality. They obviously do not regard it as a serious issue, worthy of any consideration.

The publication of the annual FWO report has revealed more than an appalling problem arising with rampant wage-theft, but also a callous indifference amongst some employers. The FWO has recovered in excess of $2 billion during the past five years. (1) During the past financial year, the organisation recovered $358 million for more than 249,000 workers; about 60 per cent of the recovery was also from large corporate sector employers. (2)

While the problem of wage-theft is prevalent amongst what are regarded as high-risk sectors in aged-care services, disability support services, agriculture, building and construction, fast food outlets, restaurants and cafes, it is the corporate sector and universities which have also been targeted successfully by the FWO.  

A casual observer to the problem might well overlook the implications of the corporate sector and universities being part of the problem of wage-theft. The use of lawyers, official websites and supposedly trained, professional and educated managers are not those usually associated with short-changing their workforces. Questions, therefore, arise about mentality.

Australia only has a working population of about 14.5 million, with a participation rate of about two-thirds. The total Australian workforce is therefore a little under 10 million.

The high level of recorded wage-theft can therefore be regarded as rampant and a serious reflection upon business people who do not regard it as a problem. They carry on regardless.

They, however, do not get it all their own way.

The FWO, for example, managed to secure a total of $23.7 million in court penalties against rogue employers, and began legal procedures against eight, which included four universities. (3) The procedures include legally binding documents which provide employers with detailed commitments in order to prevent the same or similar problem re-occurring. They managed to recover a total of $47 million back pay to workers in the eight instances.

The FWO, furthermore, issued 1220 compliance notices, and recovered $8.2 million in unpaid wages for 3438 workers. (4)    

The problem of wage-theft, however, continues to remain largely hidden amongst workers often unaware of their entitlements. In South Australia, for example, all long-service leave entitlements are held under State law and accessible on the pro-rata basis; many casual workers, however, are wrongly denied access by their employers by not being informed.

In fact, a total of 2.84 million workers in Australia's workforce also remain on temporary work and other visas. (5) Many are employed in lower socio-economic positions, in vulnerable and casualised work on basic Award terms and conditions of employment and are therefore the most vulnerable section of Australia's workforce.

There should, however, be no excuse for short-changing such workers as the correct payments and their entitlements are readily available on government websites. Unscrupulous employers are, therefore, clearly taking advantage of the most vulnerable sections of Australia's workforce. The motive for wage-theft has taken priority over any ethical considerations.

While all migrants, either temporary or permanent residents, possess the same workplace rights and entitlements under state and federal laws and regulations as all Australia's workers, expecting people in vulnerable positions to openly complain remains problematic and extremely difficult. There may be language problems when dealing with officialdom.

Many immigrants, furthermore, come from countries where trade-unions and those who speak in support of workers, live dangerous lives with few protections from arbitrary arrests and extra-judicial killings. When forwarding remittances to family members they may fear links to trade-unions in Australia might be uncovered by hostile governments in their countries of origin; the Philippines, Turkey, India and Colombia are but just of few!

It remains, however, a sad fact of life for unscrupulous employers that trade-union delegates, often with the bare minimum of education, have little difficulty reading and understanding Award Books and other government regulations. Their employers often do.

The FWO, therefore, have increasingly relied upon anonymous tip-offs for many of their initial investigations. During the past financial year, they surged to over 25,000 calls, up about fifty per cent from the previous year. (6) It is highly relevant to note that an estimated 33 per cent of the anonymous reports were from young workers aged between 15-24 years of age, not only indicating the group were the most vulnerable section of Australia's workforce, but also a group that were not afraid to speak about exploitation at the hands of unscrupulous employers.

It remains highly relevant to note the recent Fair Work Australia (FWA) and legal ruling in favour of McDonald's workers, whereby their union has been allowed to negotiate an enterprise agreement for the whole workforce, above basic Award wages, terms and conditions at the national and federal level, gives some cause for optimism. (7) McDonald's tends to employ younger people who are often in their first paid work after entering the Australian workforce and is a highly financially viable corporate business. The company, nevertheless, responded to initial union moves for a negotiated agreement through extensive legal proceedings. It failed. (8) It subsequently also provided an important political education for a large number of young people entering into the world of work in today's Australia. Injustice can be effectively challenged.

In conclusion, the FWO report has provided a shameful picture of some members of the Australian business-classes; the short-changing of their workforces is not regarded as a problem worthy of their consideration. The report, nevertheless, has provided some light at the end of a very long and murky tunnel, and that some workers have been able to deal with the problem.

However, it will only be when the Australian unions address this issue with the demand for more effective legislation and more punitive measures that the issue of wage-theft will be dealt with properly and effectively:

                                             Put the wage-thieves behind bars!


1.     Corporations at fault as five-year tally of workers left short hits $2bn, Australian, 30 October 2025.
2.     Ibid.
3.     Ibid.
4.     Ibid.
5.     Australian temporary visa holder statistics, 30 April 2025, vSure, 2025.
6.     Australian, op.cit., 30 October 2025.
7.     Macca's fails to delay union bargaining bid, Australian, 4 November 2025.
8.     Ibid.