A storm has gathered around a global player in this sugary drink phenomenon.
. That report called for greater enforcement powers and penalties and a suite of changes to the franchising code. Labor has committed to setting up a taskforce to examine the recommendations while the government is yet to release a response.At the heart of many of Chatime's problems is a cover-up of underpayment issues in its 1150-strong workforce that has been going on for years and is estimated to run to millions of dollars.
It said moving to this award would not exempt Infinite Plus from an underpayment liability. It is estimated that liability would run up to $6 million if the matter materialised.But the company decided at that meeting that no provision was required in its accounts at that stage.The atmosphere at head office at the time was tense, according to insiders, as the relationship between Zhao and Qian had become toxic.
The watchdog gave Chatime until September 18, 2018 to rectify the underpayments, which it estimated at $113,494 in NSW and $62,975 in Victoria.The letter said evidence gathered during the investigation included minutes of a Chatime management meeting in October 2016, email exchanges, compulsory evidence from staff and recorded interviews with Zhao and Qian and other senior executives.
In a statement Chatime said: "We do not propose to comment or otherwise correct any of the assumptions you have made , as it would be inappropriate to comment on matters that may be under investigation by a regulator, potentially compromising not only confidentiality but the integrity of an investigation."
The company said it was "unfortunate" that it was legally constrained on elaborating on the allegations and it was investigating how documents had been "unlawfully leaked and by whom". In the letter, Chatime apologised for the failure of the systems and said all affected staff in the corporate stores would receive a back payment. It didn’t say how many staff had been affected, over what period or the amount involved.But it seems Chatime sometimes plays hardball on complaints. In one case a supervisor at a corporate store in Sydney wrote to Chatime’s head office in October, 2017 concerned that she had been "seriously"underpaid between 2013 and 2015.
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