The Sydney Morning Herald Publishes Allegations of Exploitation of Female Staff at Merivale

This article discusses the topics of sexual harassment and assault. If this raises issues for you or someone you know, please see the list of support resources at the end of the article.

Today the Sydney Morning Herald published an investigation into Merivale, the Sydney-centric hospitality group that operates more than 70 restaurants, bars and pubs down the east coast.

Journalists Eryk Bagshaw and Bianca Hrovat spoke to four ex-employees at Level 6, Merivale’s exclusive members-only penthouse in the Ivy precinct, who allege a workplace that exploited young women, and encouraged staff to participate in drug use and sex with guests. One Merivale manager alleges the venue is “one step away from being a brothel”.

One ex-staff member, speaking about the group as a whole, told the SMH: “They hire people very, very young. There are thousands of 18-to-21-year-old girls out there who are young, naive and sucked in by Merivale.”

Access to Level 6 reportedly comes in at $10,000 a year. Staff pour champagne and choose cigars, while a stripper pole sits in the middle of a sunken lounge area. There’s a spa and a terrace, as well as a double shower and a private bar. CCTV reportedly only captures the poker table and the bar.

Allegations by former Level 6 hosts include being pressured to drink with Merivale managers who were “drunk and high”, and difficulty saying no when situations arose. “It was like a strip club with no one taking off their clothes,” alleges one, while another says it was “flirtatious”, “affectionate” and “handsy”. A Level 6 host claims a “manager” threw her on the couch and put his hand up her skirt. In a separate incident, it’s alleged a manager asked a host “Why have we never fucked?”

A spokesperson for the group responded to the allegations in a statement on Tuesday October 29: “Merivale categorically rejects the allegations made about practices allegedly imposed on Level 6 employees or others, and any other Merivale venue. All Merivale employees, including those on Level 6, are treated with respect. The allegations made are completely contrary to our culture as well as our policies and procedures.

“In all hospitality businesses, including Merivale’s, incidents occur involving both patrons and staff. There is no denying this. However, Merivale handles complaints that are made about such incidents in accordance with its policies and procedures as well as its legal obligations.”

“The several incidents alleged by the Sydney Morning Herald (SMH) are largely historical and date back as far as 2011. Merivale views these allegations of misconduct extremely seriously. Our approach has been to request sufficient detail from the Sydney Morning Herald to be able to investigate them fully including by providing us with the names of the alleged perpetrators. That has not been provided to us.”

A separate space with the same layout as Level 6 is reported to operate as a “private party zone for Merivale manager and special guests”. There are allegations of people having sex, in the shower or on the couch, when staff arrive to take or leave food and drink orders. Merivale stated it has no record of these allegations.

While it’s reported the alleged behaviours were started and actively fostered at Level 6, there are reports they’ve trickled through the rest of the Ivy precinct. At Felix, a French ground-floor restaurant, a regular claims he was offered drugs by a “Merivale manager’s dealer”. The dealer was reportedly joined by two hosts, with one spending part of the meal sitting on his lap. “You know it happens up in Level 5, behind closed doors,” the regular said. “I think everyone’s always known it was a lads club, but it’s bleeding down into all these other venues.” Merivale states that it’s “demonstrably false” it’s operating a boy’s club.

Kitchen teams reportedly “joke” about the age of the women dining with male managers.“They’ve found another 20-year-old,” said one chef. “It was something that was joked about more than anything among the men in my kitchen.” Ex-employees allege young women have been picked out of queues for special treatment. Staff claim to be “terrified” of the group’s leaders.

“[We] regularly reinforce to our people that there are no repercussions for speaking up about workplace behaviour,” the group states. Merivale rejects “the allegations of any Merivale employee scouring restaurants and bars to select patrons to join private parties hosted by older men, or for any other purpose”.

Merivale managers told the SMH they knew of six CCTV blind spots across the Ivy precinct, where they could reportedly have people beaten up by security, have sex and do drugs. Merivale states it’s “simply untrue” that there are CCTV blind spots.

In response to the Herald’s investigation, Merivale has created a complaints hotline for staff and appointed Kate Eastman SC, a leading human rights and discrimination lawyer, to independently investigate the allegations. “We encourage those with information about the allegations to contact Ms Eastman SC via a direct email, which can be done anonymously if required.”

Merivale is one of Australia’s most prominent hospitality groups, with bars, restaurants, pubs and clubs spanning a range of styles and locations. There are 81 venues listed on the Merivale website, with 77 of them in NSW.

“Due to its extensive venue portfolio and significant employee base, Merivale is one of the most scrutinised and regulated hospitality companies in New South Wales,” the group’s statement continues. “Venue operational management is governed by regulatory approved mandatory Plans of Management which have been approved by NSW Police, Liquor & Gaming NSW and Local Government (Council). Stringent and appropriately applied regulatory protocols, regulations and laws apply to all licensed venues, including regular auditing, site inspections and reviews.

“We reiterate that we have extensive and rigorous training and systems in place to ensure a safe work environment for our team and guests … There is no measure upon which we could be sensibly described as a rogue hospitality operator given the procedures, policies and protocols in place to ensure safe operations for our employees and our guests.”

Safe Work NSW is currently investigating the allegations against Merivale.

If you’ve been the victim of sexual harassment in a hospitality workplace or witnessed an incident, read activist Jamie Bucirde’s advice on navigating the situation.

If you would like to speak with someone about an experience you have had, or would like more information, please call 1800Respect on 1800 737 732 or visit 1800respect.org.au.

You can also alert Broadsheet to misbehaviour of any kind in the hospitality industry via report@broadsheet.com.au. We cannot act on specific tips, but your valuable information may inform future coverage.