Liberal leaders distance themselves from Hemmes as Merivale faces investigation

6 hours ago 4

Australia’s giants of the hospitality industry are in the spotlight across a series of investigations by the Sydney Morning Herald, The Age, Good Food and 60 Minutes.

See all 23 stories.

Liberal leaders have distanced themselves from hospitality baron Justin Hemmes, declaring allegations of exploitation of workers, sexual harassment, and VIPs with criminal links at Merivale venues are “deeply troubling” just months after the billionaire hosted a Liberal election fundraiser at his $100 million mansion.

The response from Liberal leaders follows an investigation by this masthead and 60 Minutes, which revealed fresh claims of underpayment, exploitation of women and sexual harassment at Merivale on Monday.

The company, which has property assets worth an estimated $3 billion, has denied the allegations and accused this masthead of malicious journalism and intimidation. The company is also facing growing scrutiny over its plans to expand into Melbourne, where it plans to turn a $55 million car park into a multi-level entertainment precinct.

NSW Liberal leader Mark Speakman said allegations in the reports were “deeply troubling”.

“Every worker — especially young women starting out — deserves to feel safe, respected and valued at work, no matter where they work. I’m not going to tell people where to eat,” he said.

“But I’ll say this, I back any worker who speaks up against abuse. That takes guts. And I expect every employer in NSW — big or small — to step up, do better, and make safety and fairness the norm, not the exception.”

Federal Liberal leader Sussan Ley echoed Speakman’s concerns after Fair Work announced it had launched an investigation into allegations of exploitation at the company, which has employed more than 50,000 people over the past three decades as it grew into a behemoth with more than 90 venues across the country.

“All workers deserve to be safe in their workplace, and sexual harassment is against the law,” Ley’s spokesman said. “As has been reported, these matters are being investigated, as is appropriate.”

Liberal MPs speaking on the condition of anonymity to discuss internal party matters said it was unlikely the party would return to Hemmes’ mansion, the Hermitage to host its regular pre-election fundraiser, where senior business and political figures forked out up to $13,000 to have dinner with Scott Morrison before his 2019 election win and $10,000 to dine with Malcolm Turnbull in 2016.

In March, Hemmes hosted former Liberal leader Peter Dutton at the Hermitage after the then-opposition leader jetted in from flood-ravaged Queensland for the night.

Bruce McWilliam, Michaelia Cash, Justin Hemmes and Nick Greiner attend expensive Liberal Party fundraiser at Hemmes' property.

Ley’s office would not comment on whether the party would continue to accept donations from Hemmes. The federal Liberal Party secretariat was contacted for comment.

Hemmes and his companies have donated more than $350,000 to the Liberal Party of Australia since 2018, Australian Electoral Commission records show. The 52-year-old has long been close to senior party figures, including powerbroker Michael Photios, who helped Merivale secure 20 meetings with the former Liberal government between 2019 and 2023.

NSW Night-Time Economy Minister John Graham put Merivale and other hospitality operators on notice.

“We expect them to have the best standards, and it’s clear that some of them need to lift their game,” the Labor minister said. “The obligation of these operators is then to keep their staff safe, keep patrons safe, and have the best standards possible.”

Hemmes also hosts the Sydney Children’s Hospitals Foundation Silver Party at the Hermitage, which raises millions of dollars from “Sydney’s most influential business and community leaders, social elite, celebrities and media” each year. The foundation declined to comment on whether it would continue hosting the charity ball at the Vaucluse mansion.

Australia’s Sex Discrimination Commissioner Anna Cody said it was “absolutely awful” that workers said they had been allegedly exploited by employers in Australia. Eight Mexican chefs claim they were overworked, underpaid and racially discriminated against while working for Merivale. One said she considered returning to the cartel-fuelled violence near her home in Mexico rather than working for Merivale, which she described as “a nightmare”.

Another former Merivale chef, Rodrigo Zavaleta said the company “preferred to exploit humans instead of vegetables”. The chefs reported having to work double the maximum number of hours for full-time workers in Australia, often without receiving overtime.

“We pride ourselves on having good working conditions for anyone who is in Australia,” said Cody. “No one should be treated poorly or expected to work beyond the hours that they are paid.”

The allegations of workplace sexual harassment within Merivale mirror the claims made by more than 300 people surveyed for an Australian Human Rights Commission report published Friday.

The commission recommended an updated national survey on sexual harassment in Australian workplaces, greater legal assistance for workers on visas, and limiting the use of confidentiality or non-disclosure agreements. Merivale regularly asks its employees to sign non-disclosure agreements when they leave the company.

“That’s one of the other mechanisms that [some] employers … use to silence victim survivors of workplace sexual harassment. And we need that accountability. We need that transparency,” Cody said.