Overseas trolley collectors, including Indian visa holders, are being underpaid at several Woolworths sites across Australia, some getting as low as $10 per hour, Fair Work Ombudsman has found in its inquiry.
The Fair Work inspectors found serious non-compliance issues, including reports of underpayment, record-keeping and payslips at nearly half of the sites they visited across Australia.
Of the total 130 sites visited, the inspectors found some sort of non-compliance with workplace laws at more than three out of every four (79%).
Non-compliance issues at Woolworths sites
- Indications of some form of non-compliance at 79 per cent of sites,
- Indications of serious non-compliance at 49 per cent,
- Workers being paid rates as low as $10 an hour at some sites,
- Cash payments used to conceal the true identity of employees and the amounts actually paid to them,
- Manipulation of Woolworths' identity card system,
- Inaccurate, false or misleading records and failure to issue payslips,
- Workers vulnerable to exploitation and often complicit in acts of non-compliance,
- Recruitment of vulnerable workers, and
- Deficient governance arrangements contributing to non-compliance.
When the inquiry commenced, the minimum adult hourly rate was between $18.01 and $22.51, depending on whether the workers were full-time, part-time or casual employees.
Many of the trolley collectors were overseas workers from India, Sudan, Korea, Lebanon, Syria, Iraq and Iran and vulnerable to coercion and exploitation.
The Inquiry found that while Woolworths' does have some governance systems in place, these have not been effective - and this has contributed to a culture of non-compliance by its contractors.
It concluded that Woolworths had adopted a business strategy which sought to transfer capital risk to labour through its procurement practices.
Legal proceedings have recently commenced against two Woolworths' trolley collection contractors and consideration is being given to litigation against other contractors.
Fair Work Ombudsman is appealing anyone with information about trolley collectors at Woolworths to come forward.
“We reserve our right to take legal action against Woolworths for any current or previous involvement in contraventions that become evident from our further inquiries.We want anyone who has information about trolley collectors at Woolworths supermarkets being underpaid to come forward and tell us what they know,” said Natalie James, Fair Work Ombudsman.
The Inquiry was initiated because of “an overall lack of improvement in compliance, as well as disturbing allegations of violence towards trolley collectors at some Woolworths sites”.
People wanting to provide information confidentially may report their concerns anonymously via a new facility on Fair Work website at .
Employers and employees seeking information or advice are encouraged to visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice.
