Merivale statement to 7.30

Paul,
In your second round of questions, the key points we made in the last statement provided to
you stand. It is critical however that we correct some of the misleading or mistaken
assumptions that your questions appear to be based on.
As we said, Merivale takes an industry lead in ensuring its compliance with national
employment standards and the applicable industrial instruments, while at the same time
maintaining the working experience that makes Merivale a sought-after employer.
As you acknowledge in your questions, earlier this year, Merivale was comprehensively
audited by the Fair Work Ombudsman as part of the Hospitality Compliance Campaign and
the Ombudsman determined on 13 July 2018 that Merivale is in full compliance with all of its
legal obligations - see attached. On this basis, the responses to questions 1 to 6 in your
email below dated 5 November are that Merivale pays its employees in accordance with its
legal obligations and this has been confirmed by an independent regulator. There should be
no need for Merivale to explain further to you how or why our practices and pay rates are
consistent with the Merivale Employee Collective Agreement (the ECA) and the applicable
industrial legislation. We are also obviously not concerned about exposure to underpayment
claims on the basis of the findings of this audit by the independent regulator responsible for
ensuring compliance in the area.
In addition to external independent audits, Merivale also undertakes continuous internal
audits to ensure compliance. Given the results of the Ombudsman’s
recent comprehensive review and our own audits, we are confident that all Merivale staff are
paid their full legal entitlements according to the relevant industrial instrument and the
national employment standards.
The concerns raised in both sets of your questions appear to be based on an incomplete
and misconstrued interpretation of the provisions which apply under the ECA.
It is simply incorrect that the ECA provides for a 10% higher rate for weekend work or a
40% higher rate for public holidays. The ECA does provide for specified minimum dollar
rates for ordinary time, weekends and public holidays but these are not equivalent to
loadings.
In response to your questions 7 to 13, we reiterate that Merivale currently pays its
employees either at, or in most cases above, the rates outlined in the ECA for all work
performed as it is required to do by law. These rates are updated annually in compliance
with our legal obligations. Merivale certainly isn’t paying its employees less than they would
have earned in 2007, nor is Merivale paying employees any less than they are entitled to
under the law.
Merivale is committed to remaining an employer of choice in the industry and maintaining its
very good working relationship with its employees. Given the thousands of people that work
and have worked at Merivale, there have been extremely few employee issues. When
on occasion there has been a grievance, Merivale has quickly acted to address the issue
commercially and to the satisfaction of the employee.
With regard to questions 14 to 18 in relation to the termination application for the ECA, we
are currently considering what the best outcome will be for the staff and the organisation in

 the short and long term. However, we reiterate that the Fair Work Ombudsman found
Merivale was paying its staff in compliance with the law. As you would be aware, the BOOT
test only applies to the approval of new agreements by the Fair Work Commission, so it has
not applied to Merivale.
In response to questions 16 and 19 to 21, obviously we can’t disclose confidential
commercial information about our staff or the value of our assets. A list of our venues is
available on our website.
In response to question 22, Merivale takes its’ health and safety obligations and its duty and
care to its employees seriously so it does not condone the use of illicit drugs and
encourages the responsible consumption of alcohol at staff functions.
In response to question 23, we confirm that we understand that the Fair Work Ombudsman
specifically examined Merivale adherence to the ECA and payment of weekend and public
holiday rates, as outlined in the email attached.
Alongside its compliance with industrial requirements, Merivale is a sought-after employer
because it is an industry leader in combating other historical issues in the hospitality
industry, such as the lack of professional training, which we address by undertaking the
initiatives previously outlined to you.
For example, in January 2019, we will launch our own fully company paid apprenticeship
school, led by Peter Doyle (formerly est. Executive Chef) to tackle chef skills
shortages, along with a Culinary Masterclass Series we have been running for two years
now to inspire up and coming chefs.
Merivale also offers hospitality traineeships for front of house staff, which are 100% paid for
by Merivale. These provide our graduates with a nationally accredited training qualification,
as well as a job. These qualifications include Certificate III in Hospitality, Certificate IV in
Business and a Diploma of Leadership and Management.
Merivale also offers managing mental health at work training, an employee assistance
program and a strong partnership with the self-harm prevention charity R U OK?
Staff are also provided with significant discounts and other offers across Merivale venues,
along with numerous discounts and opportunities provided by our business partners and
suppliers.
Kind regards,
Kate
Kate Tones
Group People Experience Manager