Julie Tester recalls the embarrassment in her friend’s voice. It was 2022, and both women worked for Lovisa, a budget jewellery chain. Due to minimal staffing, they often worked alone for hours, unable to leave for bathroom breaks. Tester’s friend, unable to hold on, resorted to urinating in a rubbish bin. “I cried when I heard that,” Tester says. “She was pretty devastated.”
This incident was not isolated. Tester later learned that a former manager had also wet herself for similar reasons. Despite her loyalty to Lovisa, Tester began questioning the company’s practices. “How did we get to the point where we’re so degraded?” she wondered.
Lovisa’s Global Success and Employee Struggles
Lovisa, a success story in Australian retail, has expanded to over 1,000 stores in 50 countries. In Australia alone, it operates 182 stores, attracting young women with its affordable jewellery. Last year, the company reported global sales of $798 million, a 14% increase from the previous year.
However, amid its global expansion, Lovisa faces a rebellion from its workforce. Nearly 700 former and current Australian employees have filed a class action against the company, alleging violations of the Fair Work Act and breaches of workplace agreements. The action, largely driven by women, accuses Lovisa of maximizing profits at the expense of employee rights, including unpaid work and denied breaks.
The Power Behind Lovisa: Brett Blundy
Brett Blundy, Lovisa’s co-founder and chairman, is a renowned figure in retail. With a fortune estimated at $3.95 billion, Blundy’s ventures span music, lingerie, clothing, and more. Despite his success, Blundy remains media-shy, and attempts to reach him for comment on the class action were unsuccessful.
Blundy’s reputation for business acumen is well-documented. However, former Lovisa employees describe a different reality at the store level, where low staffing and wage practices have led to distressing working conditions.
Employee Experiences and Allegations
Former employees like Katerina Nikolovska and Tatjana Smiljic are eager to share their experiences. They describe a culture where staff were expected to work unpaid hours and meet unrealistic sales targets. “I would be beyond happy to share my experience,” Smiljic writes, interrupting her travels to speak out.
Jade Harrison-Will, who worked in Canberra, recalls being pressured to purchase Lovisa jewellery with her own money as part of her work attire. “We were very strongly encouraged to wear five pieces of jewellery to work,” she says, noting the financial burden this placed on her.
“It was one of the most anxiety-inducing periods of my life. I was going home and grinding my teeth in my sleep because I was so stressed about going to work the next day.” — Jade Harrison-Will
Legal and Industry Implications
The class action against Lovisa is a significant event in Australian retail, highlighting issues of wage theft and employee exploitation. According to Yolanda Robson of the Young Workers Centre, such practices are rampant in fashion retail. “Lovisa clearly aren’t just underpaying their young workers, they’re bullying them,” she asserts.
John Howe from Melbourne Law School notes that wage underpayment is common among young workers, with many fearing job loss if they speak up. “Most young people think they’ll lose their job if they speak up, so they don’t do it,” he says.
“A third of young workers know they have been underpaid by their employers.” — John Howe, Melbourne Law School
Looking Forward
The Lovisa class action is part of a broader movement against wage exploitation in retail. The Australian Council of Trade Unions is advocating for changes to junior wage systems, arguing that young workers should not be paid less for the same work.
For the women involved in the class action, the goal is justice and awareness. “I really want justice for everybody,” says Nikolovska. Smiljic adds, “My goal is to make other retail workers understand that this is not the way your job should be treating you.”
As the case progresses, it serves as a reminder of the power of collective action and the importance of standing up against unfair labor practices. The outcome could set a precedent for how retail workers are treated in Australia and beyond.
