The Fair Work Ombudsman will target supermarkets that underpay trolley workers who are already among the nation’s most vulnerable and exploited groups of workers.
The FWO says it has discovered some trolley collectors working for as little as $5 an hour for what can be a physically taxing occupation. Over the last six years, more than $433,000 has been recouped for 528 underpaid trolley collectors at supermarkets across the nation.
According to the 2011 census, one third of the nation’s 1500 trolley collectors are aged under 20 and 40 per cent have no education beyond year 10. Nearly 30 per cent of trolley collectors are born outside of Australia and the anecdotal evidence suggests that many struggle with a disability.
Since January, 11 matters have gone before the courts alleging underpayment of trolley collectors and, of litigations which have been finalized, the FWO has secured penalties of about $288,000 relating to underpayments of more than $426,000.
“All Australian workplaces – big and small – need to understand and apply Australia’s workplace laws to their business practices,” said Fair Work Ombudsman Natalie James. “Big companies sub-contracting out services on their sites have a responsibility to ensure those contracts do not undercut minimum employee entitlements.
“This responsibility extends to supply-chain contractors. Just because a company doesn’t “own” the contract doesn’t mean it can wash its hands of it.”
The FWO has four separate matters currently before the courts alleging that 71 trolley collectors have been underpaid nearly $485,000.
Ms James said major employers should not be able to turn a “blind eye” to minimum employee entitlements and that the attempt to undercut competitors’ costs should not be reflected in the erosion of the basic safety net. She said this had become a problem in three areas of work including trolley collecting, cleaning and security.
Ms James also welcomed the commitment from United Trolley Collections to partner with the FWO to ensure its subcontractors are complaint with workplace laws. She said she was concerned about supermarket chains that focused solely on cost when contracting out trolley collection services.
“Simply choosing the provider who offers the lowest price without looking closer or asking questions about how they can offer such low prices, can potentially expose supermarket chains to reputational damage in the event that the provider turns out to be underpaying their employees.”
Increasingly the FWO is using accessorial liability – a mechanism by which individuals who are party to a breach of workplace laws or who fail to take action to stop a breach of workplace laws can be held to account.
