Employees at a Grill'd store in Melbourne went on strike on Saturday, demanding fair pay and improved working conditions.
About 20 workers took industrial action for 12 hours starting at 11.30am AEDT on Saturday, amid negotiations over a new enterprise agreement.
The workers — who are members of the United Workers Union (UWU) — have accused the burger chain of using traineeship programs to underpay employees, claiming that some have earned just $14.90 an hour for years.
UWU national secretary Tim Kennedy told SBS News that "Grill'd is trying to dress up wage theft as a legitimate thing".
"We actually think it's the first strike ever taken by fast food workers in total in Australia," he said.
SBS News could not independently verify the 'first-ever' claim but understands it was made after a search of the Australian Council of Trade Union (ACTU) databases.
What are the allegations?
The burger chain's business model offers a traineeship program to young workers known as Hamburger University.
As advertised by the company, it allows for the hiring of team members with no prior experience. Upon completion of the program, workers receive a Certificate of Hospitality.
A Grill'd spokesperson said: "Traineeships are a great way to provide skills, knowledge and leadership expertise."
However, UWU alleges that Hamburger University is a means for Grill'd to pay workers an "unfair wage" — as low as $14.90 an hour.
UWU national secretary Tim Kennedy (centre, wearing dark grey jacket) says Grill'd is trying to "dress up wage theft as a legitimate thing". Source: Supplied / United Workers Union
"What's more, it's fundamentally subsidised by taxpayers to the tune of almost $30 million," he added, referencing a report into Grill'd's traineeship program by the Australian Financial Review in September last year.
According to the report, the total amount paid to Grill'd under the Coalition's flagship $5.8 billion trainee and apprentice wage subsidy rose to $28.3 million by July 2023, up from $16.6 million the previous year.
"Like any other fast food company, it makes enormous profits for its owners at the expense of young people doing important work," Kennedy said.
The company is worth about $450 million and has 172 outlets across the country.
"More than 33 per cent of our restaurant managers commenced their careers as trainees and have progressed and developed to hold senior leadership roles," a Grill'd spokesperson told SBS News.
"The proposed new Grill'd Enterprise Agreement (EA) includes increased pay rates, higher salaries, and further benefits well beyond that of the industry award," it added.
"Our amazing team are excited by the proposed new EA and its terms and conditions — which provide an increased wage rate of more than 13 per cent versus current, and up to 23 per cent versus the award, for team members."
The Grill'd spokesperson told SBS News that "only 12" of its more than 4,500 employees "are known to be union members".
Kennedy maintains that employers like Grill'd put "enormous pressure on people not to collectively bargain", which leaves some fearful that joining a union is "bad for job prospects".
'No worker should live in poverty'
The majority of workers at the Flinders Lane store are between 18 and 25 years old.
Many of them say their struggle with dismally low wages has worsened their situation during an ongoing cost of living crisis.
UWU member Mitch from Grill'd Flinders Lane store said under the company's proposed EA, 18-year-old trainees would work for as little as $17.00 per hour, with no weekend penalties.
"The working conditions imposed by Grill'd on its staff would not pass muster in any other industry," Mitch said.
The UWU alleges Grill'd is "notorious for forcing its workers to work on traineeships and youth wages". Source: Supplied / United Workers Union
Some union members have even reported going without meals to keep up with the soaring rents in Melbourne.
"Young people working in profitable companies like this are serving food but can't afford to put any food on their own tables," Kennedy said.
'Young Australians need better pay and secure jobs'
This week, the ACTU is leading a renewed push for
ACTU president Michele O'Neil said: "Despite being paid discounted pay rates, young Australians don't pay youth rent or youth grocery bills. Their jobs are more likely to be insecure."
"Young workers need better pay, more secure jobs and safer work. Unions are standing up for young workers."
To address what Kennedy calls a "youth wages sham" for young Grill'd workers, he emphasised that the impact of a strike at just one location shouldn't be underestimated.
"This type of action is very similar to the action that was taken by Starbucks workers in Buffalo in the United States a number of years ago, which started out small with one workplace," he said.
"Now, there are over 600 Starbucks places around the US covering thousands and thousands of workers who have now won a union and a contract, which gives them proper living wages.
"We believe there's an opportunity here to make change."
