Council will run the facility and employ staff directly after failing to attract a commercial tenant for the function space.
The wages for some of the positions, which were advertised as temporary (12 months), are 20-25 per cent above market rates.
Business owners said with the uncertainty of lockdowns and trade restrictions due to COVID-19 they could not afford to compete for staff.
“We are in a war and trying to survive, this is like friendly fire,” Woolshed owner Ange Mangiamelli said.
“I can’t blame people when a carrot like this is dangled rather than the scraps we have, we can’t expect them to be loyal.”
Ineka Rowe, who runs catering company Little Gourmet, said the pay rates being offered were “ridiculous”.
“It is hard to keep our staff as it is, this is our sixth lockdown, our business has been on the brink a couple of times, it would be a nail in the coffin if we lose staff,” she said.
Butter Factory Café owner Chris Reisner said the move was insensitive given the plight of local hospitality businesses.
“It is nearly impossible to find staff and we have constant restricted trade, what they are doing doesn’t make you feel warm and fuzzy on the inside,” he said.
“I might as well give up on the café and go and work for the council.”
Ingrid Thomas from Teller, who is also president of Tourism Greater Shepparton, said she understood the café was an integral, and necessary part of the plan for SAM, but it should be a commercial operation that competed on the same basis as other local businesses.
“If their business doesn’t work nobody is going to lose a house,” she said.
“It is a tone deaf way of going about it, it is not reading the situation our community, and the industry is in, and it will be devastating to somebody that loses their head chef.”
“Imagine seven good business in town who each lose a full-time staff member, how many of those are going it survive.”
Paul Tsorbaris from the Aussie Hotel said he had been advertising for staff and could not get anybody in the current climate.
“I’ve had ads running for six weeks and I can’t get anybody, this is not going to help,” he said.
“It is awful, things are hard enough without having the council compete against us, I can’t find staff and I can’t afford to pay them what the council is offering.”
“It shows no compassion or respect for good people who are trying to run hospitality businesses.”
Charlie Fiore from Fiore’s Bakery & Café was also upset with council’s recruitment.
“It is outrageous the money they are offering, it is ratepayers’ money,” he said.
“It is so hard to keep workers at the moment they haven’t thought about the consequences.”
