MasterChef star George Calombaris has launched a spray at the Gillard government’s Fair Work Act, claiming that public holiday and weekend penalty rates have the potential to force his new restaurant venture to the wall.
In an exclusive interview for The Power Index, the straight-talking multimillionaire said that waiters at his new South Yarra pasta den Mama Baba would have to be paid “$40 an hour on Sundays”, “and it’s not like they’ve had to go to uni for 15 years”.
“The problem is that wages on public holidays and weekends greatly exceed the opportunity for profit … it’s just not a good business practice to be paying penalty rates. It’s really difficult to stay open and we only do it because of tourism but the reality is it’s uneconomical,” he said.
“So our labour laws are something that need to be looked at and we keep talking about it.”
About 350 staff are employed across Calombaris’ seven-venue Press Club Group. Workers in the hospitality sector receive 25% loading on Saturdays and 75% on Sundays. In the 12 months to September, hospitality industry wages increased by 3.1%, well below the average 3.6% wages growth in other industries.
But Calombaris, a self-described “proud Mulgrave boy”, told The Power Index he had recently stumped up $45,000 for a pasta extruder for Mama Baba and that “variables” were threatening to turn the restaurant’s books a deep shade of red.
“People underestimate the cost, as soon as those doors open, you’ve got variables, you’ve got labour costs, your beverage costs, your food costs, your fixed costs, they all start adding up,” he said. “People say we’re very expensive in Australia in terms of costs. You know I can eat at [UK three Michelin star restaurant] Fat Duck cheaper than I can at some fine dining restaurants in Australia. But I know why it’s like that … because of our labour laws.”
Workplace relations minister Bill Shorten, who has appointed an independent panel to review the Fair Work Act, rejected Calombaris’ analysis, pointing out that “waiters like other low-paid employees, couldn’t even afford to eat in high-end restaurants if they weren’t paid penalty rates”.
“I appreciate George’s excellent cooking and his business sense is to be applauded, but I can’t agree that cutting wages of low-paid workers is a boost for the hospitality industry,” he told The Power Index this morning. “If George wants to bargain with his workers and improve productivity and be even more competitive, then the tools exist in our present workplace system.
Bill Shorten’s an idiot if he he thinks you can get a 75% productivity increase from waiters on Sundays.
Bill shorten’s a fool if he thinks customers will pay 75% more to eat on Sundays.
Either the restaurants will not open on Sundays or we’ll revert to self-service instead of waiters taking our orders and delivering our meals.
if you’re paying your waiters $23 an hour, why aren’t they permanents?
shan’t be eating there. Ever.
God help us, another turdy little jumped up capitalist in the Gerry Harvey mould. Where do these people get off, it is not his “wonderful” flair with food that has got him his millions it is the hardworking staff who do it for him and treat his customers so well that they want to come back.
When I had a small business in retail,I paid my workers over the award gave them bonuses, took them out to dinner once in a while, asked for their advice and input on the business and generally treated them like human beings. What did they do? Made me a lot of money. It is not rocket science, just do it wanker.
In food I always use the example of John Laytham, the very famous Washington restauranteur, who makes our whinging friend look like the idiot he is. John told me that he always treats his staff well as they are the heart and soul as well as the face of the business. His staff confirmed that, with in 2006 wages of $18/hour plus tips being paid in a country where the norm was $5/hour or just working for tips. John has 15 restaurants and 2000 staff, he got this big by treating his staff well.
Try and follow suit and stop your pitiful bleating.
I do love the irony of someone who works for Crikey on very low wages going into bat for someone who takes plates of food from the kitchen to a table for 23 dollars an hour on weekdays and 40 dollars an hour on Sundays. Heck at these pay rates any half-smart, hard-working university student should be able to pay their HECS fees for a BA back before they graduate – with change left over. And besides like so many of these upscale restaurants we are really are just talking about a McDonalds for Yuppies. Enjoy!