Retail robbery: How clothing chains cheat staff

Written By Unknown on Selasa, 02 Juli 2013 | 20.01

A screenshot from the Diva employee intranet shows that staff must wear Diva jewellery, despite the company CEO's denial it is store policy. Picture: Supplied Source: Supplied

RETAIL staff as young as 15 are being forced to spend their wages on employer-brand clothes when working on the shop floor, and the onus is on them to fix the problem.

As reported last week by news.com.au, employees at Australian chain stores are spending a significant portion of their earnings keeping up to date with current stock.

Under law, employers must reimburse the cost of purchasing the clothing to the employee.

However, news.com.au has received more than 200 emails and comments from frustrated employees who have not been compensated. And both Workplace Relations Minister Bill Shorten and the retail union say if workers want their money refunded they need to take their claims to the Fair Work Ombudsman.

Joe de Bruyn, national secretary of the Shop, Distributive and Allied Employee's Union, told news.com.au the only way to fix the problem was for retail workers to be educated on their entitlements.

"Because knowledge about what you are entitled to in the workplace is usually not anything you learn about at school or university and unless a person has a special interest in this they just are ignorant," he said.

"And it's always a difficulty that people are reluctant to put their hand up for what they may know to be their entitlements because they're worried they will be victimised."

Another issue is that some retailers have an official policy that "encourages" staff to wear its brand clothing, but in practice workers are forced to do so.

"You can't have your cake and eat it too by saying it's optional then putting pressure on workers," Mr de Bruyn said.

"It is in effect compulsory even though you're trying to deny it and you can't get out of the award obligation. Effectively what the employer is doing is stealing from the employee."

A spokeswoman for Workplace Relations Minister Bill Shorten said there was no excuse for ripping staff off.

"Under the Fair Work Act an employer can't require an employee to unreasonably spend any of the wages that he or she earns," she said.

"The Minister would encourage any employee in this situation to contact the FWO infoline."

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Last week Diva denied its staff was required to wear five pieces of Diva jewellery at work. But on the Diva employee intranet it clearly states this is a requirement.

"Always wear 5 to keep diva alive!!! Five current diva pieces are to be worn instore [sic] at all times to excite and delight our customers," the statement reads.

"We reward our teams with a very generous discount of 50 per cent to ensure the affordability of keeping up to date with current product."

A number of Forever New employees contacted news.com.au to confirm allegations staff were required to wear the brand's clothing and jewellery at work, despite the company denying it was company policy.

A Forever New spokeswoman told news.com.au that it took the concerns raised "very seriously".

"We are currently reiterating the policy to our managers, to ensure that all Forever New employees understand that it is not compulsory to wear Forever New product," she said.

Many retail workers have sent their story to news.com.au. A 17-year-old Supre employee, who wishes to remain anonymous, said photos of shop floor employees' outfits were taken and sent to head office to be checked.

The employee said the staff have a set uniform of Supre clothing they were told about ahead of their shifts.

"I'll ring my boss and the boss will say 'The uniform today is the new jeggings, a jumper and a scarf'. It changes all the time," she said.

"We get photos taken of us every day we work and that gets sent to head office, and if we're not wearing [the uniform] my boss gets in trouble. If I'm not wearing the uniform my boss won't let me be in the photo."

A Supre spokeswoman declined to comment.

Courtney Thiele, 19, a store manager at clothing chain ICE Design told news.com.au that she gets pressure from head office to wear new season clothes, and has been told that her outfit must cost at least $50.

"Not only do we have to be wearing new clothes we have to be wearing new shoes," Ms Thiele said.

"I've got 15-year-old girls in my store and they've got their parents to come in and buy clothes for them because they've got to be up to date."

She said staff received 75 per cent off 'hot pick' items and 40 per cent off all other stock, but the discount was void once staff have spent $300.

ICE Design chief operating officer Gavin Fielding denied the retailer pressured staff to wear the brand's clothing.

"I'm very much aware of the Fair Work Act. It's not actually policy to wear the clothing. It's not a uniform," Mr Fielding said.

"Our 'hot picks' are an incentive. It's a suggested item that we put forward to our staff at cost price and it's a way to encourage them to wear it."

A former Lorna Jane employee told news.com.au the company policy stated that it was optional for staff to wear the brand's clothing, but her area manager pressured her to wear current season tops.

"They know how to word it without crossing the line, very sneaky and sad for current and past staff," she said.

A Lorna Jane spokeswoman said Lorna Jane fully complies with the Fair Work Act.

"Whilst we encourage staff to wear our clothing and offer discounts and staff incentives, we have a pro-choice policy. We have produced a video and signage in store to ensure our team are aware of alternatives to wear and are treated fairly. During all staff inductions, we speak openly to staff and ensure they are clear of other clothing options," she said.

An employee of chain store Metalicus, who do not wish to be named, told news.com.au she has spent about $2500 in just over a year on clothing she was required to wear at work.

"Metalicus employees have to wear head to toe Metalicus every shift, with at least one current item in store, and unfortunately casual employees only get 50 per cent off clothing," she said.

Metalicus declined to comment.

Any worker who has a concern about this issue should lodge a complaint with the Fair Work Ombudsman either via the website at www.fairwork.gov.au or by calling the Infoline on 13 13 94.

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