Tipping – Is it creeping into Australia?
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Tipping is rare in Australia. While introduced in both the US and Australia in the late 19th century, it only became a norm in the former. Tipping is largely seen as ‘un-Australian’, with many believing that workers should not depend on gratuity to make a living. However, many Aussies have recently observed that the custom is slowly creeping into the Australian service industry.
A post on the social news website Reddit prompted others to discuss ‘insidious’ tipping trends that various establishments are now practising.
The post said: ‘It seems to me that we’re getting more and more places using digital payment means to promote tipping in Australia. When you pay by card, you have to go through the tipping questions before being able to pay. Some places now have a QR code where you order and pay for your stuff at the table with no interaction from a server, and the process still asks for a tip. We need to f**k this sh** off.’
Many others agreed and shared their opinions and experiences with tipping in the country.
A top comment said: ‘Agreed. Asking for a tip before there's been any service at all, while you're ordering from a code on the table is whack.’
A Redditor responding to the comment shared another despicable practice: ‘What’s worse is when the app automatically puts a 10% tip in and then makes you search for the no tip option.’
Americans who found the post also chimed in that this is just as despised in the States: ‘This is new in America too and we hate it too. In America, you tip if there's a specific person taking care of you, like an actual waiter and you're in a section assigned to them and you're sitting down and having a meal. It's a sh** system, but that is the system. These app-based tablet things were pioneered by Square, and then a ton of app-based PoS systems popped up and they, for some reason, unilaterally decided that we would start tipping, like, the person who made your coffee in the morning, or some fast food places.’
The poster is referring to the mobile payment service, Square, used by retailers around the globe. The technology has been around since the early 2010s and has been subject to criticism from consumers. One article pointed out that tipping was made easier and sneakier through credit and debit cards compared to when using cash. The interface is also built to guilt you into giving tips.
Establishments are seeing fewer cash tips because of the rise of mobile POS systems. Credit: Blake Wisz
One commenter said in jest: ‘I want to get my debit card printed with the words "Please do not ask for a tip as refusal often offends."’ Another said: ‘Always refuse to tip as a matter of principle.’
The money you give also might benefit owners more than service workers. One Redditor’s advice? ‘Never tip unless you are putting cash directly into the hand of the person who gave exceptional service. There is no guarantee that the tip will be given to the staff.’ A paper from the University of Wollongong supports this: there is no law governing who is entitled to customer gratuities in Australia.
Another urged fellow Aussies to resist the practice because of what the consequences might be: ‘I really believe we need to unite as a country to continue to push back on tipping culture. The way wages are stagnating and with the rise of inflation, employers will continue to push tipping more and more to compensate for refusing to increase wages. We really don't want to get to a point where people, especially in service jobs, are relying on tips to even live because their actual wage isn't enough.’
Since the pandemic, the industry has seen an uptick in tips. According to Robin Chiang, Manager of International Markets for OpenTables, around 25 per cent of Aussies now tip after a meal, although it is less in the form of cash and more through electronic payments. Most tippers are under 30 and are mainly motivated to help the restaurant industry.
The study also found that 27 per cent of respondents are more likely to tip than before the pandemic. At least 48 per cent of tippers would round up the bill, 21 per cent would leave a tip of five per cent, 20 per cent will leave a tip of 10 per cent, and 12 per cent said that the amount would depend on the quality of service.
Still, the majority of Aussies do not want to leave tips – 63 per cent believe that what they pay should suffice and 39 per cent said the gratuity should already be added to menu prices. Meanwhile, 17 per cent do not want a tipping culture to start in Australia and 10 per cent are unsure when to give tips.
Speaking with Yahoo News Australia, United Workers Union Director of Allied Industries Godfrey Moase confirmed that there is ‘a creep towards tipping’.
He said that while it is a safety net for workers, especially in times that see less business like the pandemic, it still is a ‘maladaptive coping mechanism’.
Businesses could deal with debts such as mortgages or rent, and tipping could provide some breathing space. But it also shifts the responsibility of providing a livable wage to customers, which could make businesses in the hospitality sector think they could get away with paying substandard salaries.
Moase also mentioned another undesirable effect of tipping: it makes the abuse of workers more likely. Not only is it possible for them to experience wage theft from their employers, but customers can also harass them. Moase said: ‘What it also does is open up hospitality staff to further disrespectful treatment from customers because it changes the power dynamic. And we know that harassment and disrespect of hospo staff are absolutely rife in the industry.’
Labour rights advocates around the globe have made associations between workplace harassment and tipping. Credit: Kate Townsend
The University of Queensland Business School recently reported a concerning finding: more than 60 per cent of workers from the hospitality industry said they had experienced workplace abuse, be it verbal or psychological, including but not limited to bullying, sexual harassment and racial abuse, while 70 per cent said they have witnessed it at work. ‘Customers were the main perpetrators, although 42 per cent of respondents said the abuse came from their managers or supervisor,’ the study said.
Moreover, 12 per cent said that they were paid below the legal minimum hourly wage and 40 per cent were not allowed to have breaks during their shifts.
Moase says that the industry should be forced to pay a living wage to hospitality workers. ‘They need more agency and power in order to not experience that sort of behaviour,’ he said.
What do you think? Is tipping catching on in Australia based on your experience? What can be done to protect our hospitality workers? Do you tip? Leave a comment below and let us know!
A post on the social news website Reddit prompted others to discuss ‘insidious’ tipping trends that various establishments are now practising.
The post said: ‘It seems to me that we’re getting more and more places using digital payment means to promote tipping in Australia. When you pay by card, you have to go through the tipping questions before being able to pay. Some places now have a QR code where you order and pay for your stuff at the table with no interaction from a server, and the process still asks for a tip. We need to f**k this sh** off.’
Many others agreed and shared their opinions and experiences with tipping in the country.
A top comment said: ‘Agreed. Asking for a tip before there's been any service at all, while you're ordering from a code on the table is whack.’
A Redditor responding to the comment shared another despicable practice: ‘What’s worse is when the app automatically puts a 10% tip in and then makes you search for the no tip option.’
Americans who found the post also chimed in that this is just as despised in the States: ‘This is new in America too and we hate it too. In America, you tip if there's a specific person taking care of you, like an actual waiter and you're in a section assigned to them and you're sitting down and having a meal. It's a sh** system, but that is the system. These app-based tablet things were pioneered by Square, and then a ton of app-based PoS systems popped up and they, for some reason, unilaterally decided that we would start tipping, like, the person who made your coffee in the morning, or some fast food places.’
The poster is referring to the mobile payment service, Square, used by retailers around the globe. The technology has been around since the early 2010s and has been subject to criticism from consumers. One article pointed out that tipping was made easier and sneakier through credit and debit cards compared to when using cash. The interface is also built to guilt you into giving tips.
Establishments are seeing fewer cash tips because of the rise of mobile POS systems. Credit: Blake Wisz
One commenter said in jest: ‘I want to get my debit card printed with the words "Please do not ask for a tip as refusal often offends."’ Another said: ‘Always refuse to tip as a matter of principle.’
The money you give also might benefit owners more than service workers. One Redditor’s advice? ‘Never tip unless you are putting cash directly into the hand of the person who gave exceptional service. There is no guarantee that the tip will be given to the staff.’ A paper from the University of Wollongong supports this: there is no law governing who is entitled to customer gratuities in Australia.
Another urged fellow Aussies to resist the practice because of what the consequences might be: ‘I really believe we need to unite as a country to continue to push back on tipping culture. The way wages are stagnating and with the rise of inflation, employers will continue to push tipping more and more to compensate for refusing to increase wages. We really don't want to get to a point where people, especially in service jobs, are relying on tips to even live because their actual wage isn't enough.’
Since the pandemic, the industry has seen an uptick in tips. According to Robin Chiang, Manager of International Markets for OpenTables, around 25 per cent of Aussies now tip after a meal, although it is less in the form of cash and more through electronic payments. Most tippers are under 30 and are mainly motivated to help the restaurant industry.
The study also found that 27 per cent of respondents are more likely to tip than before the pandemic. At least 48 per cent of tippers would round up the bill, 21 per cent would leave a tip of five per cent, 20 per cent will leave a tip of 10 per cent, and 12 per cent said that the amount would depend on the quality of service.
Still, the majority of Aussies do not want to leave tips – 63 per cent believe that what they pay should suffice and 39 per cent said the gratuity should already be added to menu prices. Meanwhile, 17 per cent do not want a tipping culture to start in Australia and 10 per cent are unsure when to give tips.
Speaking with Yahoo News Australia, United Workers Union Director of Allied Industries Godfrey Moase confirmed that there is ‘a creep towards tipping’.
He said that while it is a safety net for workers, especially in times that see less business like the pandemic, it still is a ‘maladaptive coping mechanism’.
Businesses could deal with debts such as mortgages or rent, and tipping could provide some breathing space. But it also shifts the responsibility of providing a livable wage to customers, which could make businesses in the hospitality sector think they could get away with paying substandard salaries.
Moase also mentioned another undesirable effect of tipping: it makes the abuse of workers more likely. Not only is it possible for them to experience wage theft from their employers, but customers can also harass them. Moase said: ‘What it also does is open up hospitality staff to further disrespectful treatment from customers because it changes the power dynamic. And we know that harassment and disrespect of hospo staff are absolutely rife in the industry.’
Labour rights advocates around the globe have made associations between workplace harassment and tipping. Credit: Kate Townsend
The University of Queensland Business School recently reported a concerning finding: more than 60 per cent of workers from the hospitality industry said they had experienced workplace abuse, be it verbal or psychological, including but not limited to bullying, sexual harassment and racial abuse, while 70 per cent said they have witnessed it at work. ‘Customers were the main perpetrators, although 42 per cent of respondents said the abuse came from their managers or supervisor,’ the study said.
Moreover, 12 per cent said that they were paid below the legal minimum hourly wage and 40 per cent were not allowed to have breaks during their shifts.
Moase says that the industry should be forced to pay a living wage to hospitality workers. ‘They need more agency and power in order to not experience that sort of behaviour,’ he said.
What do you think? Is tipping catching on in Australia based on your experience? What can be done to protect our hospitality workers? Do you tip? Leave a comment below and let us know!
