HOTL6003 Talent and Culture Introduction

Running head: HOTL6003 TALENT AND CULTURE
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HOTL6003 TALENT AND CULTURE
Institution
Student
Date

HOTL6003 TALENT AND CULTURE
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HOTL6003 Talent and Culture
Introduction
This article relates profoundly on payment challenges that workers at experienced during the
reign of Calombaris as the director of MAdE Establishment. There are various issues stemming
from this matter such as shareholders missing out on entitlements, significant underpayments,
unfair compensations, employees’ discrimination and insolence, wage theft, incorrect employee
classification, and incorrect HR and payroll processes. Though there are various methods that
can be used to analyse these issues, in this paper, the PESTEL model has been used.
Organisations faced with similar issues can apply various recommendations contained in this
paper to avoid or mitigate the condition.
Shareholders missing out on entitlements
Shareholders and directors at MAdE were deprived of their rights such as rights to share in the
Establishment’s assets, income, and profitability. Legally, shareholders should be given equal
opportunities and a degree of influence and control over company affairs like management
selection. Besides, it is clear that MAdE did not consider various legal factors such as employee
rights, safety, and protection-reason as to why legal bodies intervened.
Significant underpayments/ Wage theft
Employees at MAdE received smaller payments than it was required. Some restaurants did not
pay staff, particular casual workers, at the correct award levels. This issue prompted political
government elites to intervene since wage stealing in Australia is considered as an offence
punishable by imprisonment or penalty (Macdonald, Bentham & Malone 2018). Ms
Belfrage, organiser for the Hospo Voice union, noted that over 515 workers were underpaid and
as a result, called for harsher penalties and punishment for Calombaris and other perpetrators.
Unfair compensation
Apart from the underpayments, MAdE workers were not properly compensated especially for
their overtime working hours. Fair Work Australia (1) allows employers to ask their workers to
work at reasonable overtime or an extra time beyond their ordinary working hours. However, the
statute requires employees to be compensated accordingly (Stewart 2011). Underpayments and
unfair compensation were exposing MAdE employees to tough economic situations since they
were lowering their disposable incomes and generally their standards of living. This, as noted in
the article, was hitting casual workers.