In early 2021, two Chinese female international students in Adelaide were assaulted at the Fun Tea bubble tea shop, sparking widespread attention on social media. The altercation arose when the students confronted the shop owner over unpaid wages, which the owner denied. This incident ignited public outrage and spurred discussions about international students being exploited for unpaid wages.
According to reports, social organizations assisting the assaulted women stated that both were victims of wage exploitation, demanding $10 per hour from the bubble tea shop, whereas the Fast Food Industry Award mandates a minimum wage of $25.51 per hour, with casual employees requiring an additional 25% casual loading on top of the minimum wage.
Following the incident, the bubble tea shop remained closed. Recently, dozens of protesters gathered at the shop, demanding an end to all wage exploitation and underpayment practices. Protesters from the South Australian Workers' Rights Information and Assistance Station stated that at least 121 businesses in Chinatown pay workers hourly wages below $15, with international students often being victims of wage underpayment.
In Chinese-owned businesses in Australia, including restaurants, cafes, bubble tea shops, fast-food outlets, and fish and chip shops, hourly wages typically range from $8 to $10, with some paying as low as $5 per hour. Moreover, over the past decade, hourly wages in Chinese-owned shops appear to have remained stagnant.
In extreme cases, some employers exploit students by using them for unpaid trial shifts. For instance, they may notify 2-3 international students to come in for a trial shift for half a day or a full day, then claim they are unsuitable for the role and ask them to leave without compensation, thus saving on labor costs.
Additionally, wages are usually paid weekly in cash, and if employers withhold wages, students often feel helpless as their employment arrangements are typically verbal agreements without written records, making disputes challenging to resolve.
Why do instances of wage underpayment occur repeatedly among international students?
One significant reason is that international students lack an understanding of Australian wage laws and their rights. Australia's payroll wage system is complex, and even Australians themselves may struggle to comprehend it. Understanding professional wage laws enables individuals not only to assert their rights with legal recourse but also to negotiate for higher wages.
In recent years, numerous cases of wage underpayment have surfaced in Australia, and many articles have been written to expose such practices. To prevent such occurrences, it is crucial for employees, including international students, to have a basic understanding of Australian wage laws, establish wage agreements in contracts based on industry award requirements, and avoid exploitation.
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