Workers at a Grill’d burger franchise in Camberwell will get a pay rise after the Fair Work Commission agreed to terminate the WorkChoices-era agreement they had been working under. Represented by their union, United Voice, the workers successfully argued that the current agreement falls short of the legal minimum under the Restaurant Industry Award.

As part of the decision, announced on 30 July, management at Grill’d Camberwell have been given 60 days to reach a new agreement with their workers. If none is reached, they will be required to comply with award conditions, including the payment of penalty rates. 

The ruling is the second major defeat for the company in a week. A few days earlier, the Federal Court forced the burger chain to reinstate Kahlani Pyrah who was sacked after questioning wage rates at the Camberwell outlet. Speaking to Red Flag after the hearing, Kahlani was jubilant: “I’m thrilled at the outcome”.

Another Grill’d worker said the win was evidence that speaking out matters. “It goes to show that if you fight, and you fight for the right reasons, you can come out better off”, she said.

The decision will have ramifications beyond Kahlani’s workplace. Nationally, Grill’d employs more than 2,000 people, many of whom are covered by a master agreement dating back to 2005. This agreement also strips penalty rates and sets wages at a flat below-award rate. Under the weight of the public interest surrounding Kahlani’s case, the company has agreed that it too will be renegotiated, meaning it will have to increase the wages of hundreds of its workers.

The current scrutiny of Grill’d’s practices also has implications for the hospitality sector in general. The industry is well known for underpaying workers. A recent Fair Work Ombudsman report found that in the 2012-13 financial year, 46 per cent of audited hospitality businesses paid below the legal minimum. More than $1 million was stolen from workers as a result of these practices.

The stand taken by the Grill’d Camberwell workers can be a catalyst for others. “Kahlani has given a lot of people inspiration to stand up for themselves and has shown that you don’t just have to accept things”, said another Grill’d worker on the steps of the Fair Work Commission.

Jack Todaro, a hospitality worker also at the hearing, said the Grill’d example shows that workers in hospitality can be organised. “Even if it hasn’t been a strong area of union activity before, Kahlani’s case shows that people aren’t as isolated as they think and that there’s a point in fighting back”, he said.

Workers at the Grill’d outlet on the ground floor of the Commission building were approached for comment on the case. With the manager looking on, one told Red Flag, “it’s a good thing that this is being discussed”.