Trolley collection industry no longer rife with wage theft
Trolley collection was one of the worst industries for wage theft and exploitation of workers, but things have changed according to the workplace watchdog.
The Fair Work Ombudsman has just announced that it is renewing its compliance partnership with the country’s largest trolley collection company – United Trolley Collections (UTC) – which it says will ensure trolley collectors’ workplace rights will be protected.
The background
UTC employs independent contractors to provide trolley collectors to huge retailers like Woolworths, Coles, Big W, Kmart and Target.
The company signed its first proactive compliance deed with the Fair Work Ombudsman four years ago.
Back then, it committed to a number of measures to improve compliance with workplace laws in its supply chain network, including paying legal wages and entitlements.
First compliance agreement successful
According to a report released last year, the agreement saw compliance levels with workplace laws at UTC’s supply chain network improve significantly.
In one case, an audit of more than one thousand trolley collectors found that almost 95 percent were being paid correctly.
UTC has now signed a second compliance agreement with the Ombudsman, which it hopes will only improve compliance outcomes.
Ombudsman says partnership benefits workers
Fair Work Ombudsman Sandra Parker said she is confident the renewed partnership will continue to deliver benefits for workers.
“Our first Proactive Compliance Deed led to UTC dramatically improving its compliance with Australia’s workplace relations law,” Ms Parker said.
“We are committed to the success of this partnership as a means to eradicate exploitation and underpayment in the trolley collection industry.”
“Supply chain regulation is a priority area for us. Working with businesses like UTC that head these supply chains helps ensure workers are getting their correct pay and entitlements.”
A step in the right direction
Industrial relations expert Miles Heffernan from Fair Work Act Claims said the compliance action is a step in the right direction for vulnerable workers.
“When you have an industry like trolley collection that has traditionally been rife with wage theft and exploitation, to be targeted like this by the workplace watchdog with the implementation of this almost industry-wide compliance program to keep them in line, is definitely a good thing,” he said.
“Too many trolley collectors have been ripped off for too long – so it’s good to see that most who work for this particular organisation are now being paid what they are legally entitled to be paid, and there are checks and balances in place to make sure that they won’t have their wages stolen in the future.”
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Details of the compliance agreement
According to the Fair Work Ombudsman, the new compliance agreement has seen UTC commit to:
- self-audit its operations to ensure compliance with the law (and have the audits independently verified)
- open and regular communication with its current and future employees about their workplace rights and entitlements
- monitor, review and enhance its payroll services to ensure compliance with workplace laws
- provide annual workplace relations training throughout the supply chain to those who perform human resources, payroll and managerial and supervisory duties
- report to the FWO on its efforts to resolve any disputes and provide evidence of back payments
- meet and report regularly to the FWO about its compliance with workplace laws
- withhold monies due to subcontractors until they have back-paid their employee wages
If you have not received your proper wages and entitlements, or if you have been unfairly dismissed from employment, or if you have experienced discrimination or sexual harassment, we can help.
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Fair Work Act Claims is a private consultancy and advocacy firm and has no affiliation with any commission, tribunal or government agency.