MCG cleaners 'exploited' in wage rort scandal

Date
    January 6, 2016
    The Age

One of the world's biggest cleaning companies is embroiled in a worker exploitation scandal at the Melbourne Cricket Ground, where cleaners have been allegedly underpaid tens of thousands of dollars.   

Cleaning giant ISS is accused of being an accessory to the illegal underpayment of migrants and international students employed to clean the MCG after sports events.

Investigations by the workplace watchdog found cleaners from India, the Philippines, Columbia and Brazil were allegedly paid as low as $18 an hour and were denied casual loading and penalty rates.   >:(

Most work was at night, on weekends and public holidays – times that attract penalty rates and entitled them to $46 an hour for some shifts.

The Fair Work Ombudsman inquired extensively into ISS and First Group, the subcontractor that directly employed the underpaid MCG cleaners.

It has launched proceedings in the Federal Circuit Court against the two companies and several executives, including three Victorian managers of ISS.

After a surprise site visit at the 2014 preliminary final between Hawthorn and Port Adelaide, Fair Work inspectors found 11 cleaners at the MCG had been allegedly ripped off more than $37,000 during that football season.

Individual underpayments ranged from $276 to $7272, court documents claim.

In its writ, the Fair Work Ombudsman alleges that ISS knew the subcontract price it paid First Group was insufficient for the company to pay its workers minimum legal entitlements. ISS was also said to be explicitly aware of First Group's exploitative practices but failed to take action.

ISS holds a contract with the MCC to provide a range of cleaning services at the ground. The company had subcontracted First Group for some post-event cleaning.

A former First Group cleaner told Fairfax Media the company recruited overseas workers and students, most of whom were unaware of their workplace rights.

"Being new here in Australia, we did not know anything, like that working on late nights or on weekends meant we deserved higher pay," said the man, who did not want to be named.

"And it wasn't easy work ... we finished very, very late, picking up all the rubbish."

The case is the latest to draw attention to unscrupulous subcontracting practices in Australia and the exploitation of foreign workers.   :(

A string of similar wage abuses was exposed last year within the fresh produce supply chains of Woolworths and Coles supermarkets, and at national convenience store chain 7-Eleven.

ISS Facility Services said on Thursday that it prided itself as an ethical employer and was treating the ombudsman's allegations seriously. The company has dumped its contract with First Group for the cleaning of the MCG.

"When first notified of the potential issue, ISS took immediate action, including directly employing all those cleaners that were affected by the subcontracting arrangement," a company spokeswoman said.

The MCC said it had checks in place to ensure contractors complied with workplace law, but would take action if wrongdoing was uncovered.

"If there is evidence that a contractor is not meeting its obligations, we will investigate the matter and act accordingly," a spokesman said.

Cleaners' union United Voice said the legal action against ISS, one of the world's largest private employers, should be a warning to others that use outsourcing.

"This tells the big companies that they cannot put their heads in the sand and blame the little guys further down the chain," state secretary Jess Walsh said.   :(

United Voice raised the alarm over MCG underpayment claims in 2014. The union's own investigation estimated cleaners were owed $500,000 for a four-year period.

Fair Work Ombudsman Natalie James said the agency was determined to build a "culture of compliance" from the top of Australian supply chains.

"We are committed to scrutinising supply chains and subcontracting arrangements and holding companies accountable for business practices that undermine compliance," Ms James said.

First Group could not be contacted. The case will go to court for a directions hearing next month.

So a union has to take it up to fight for workers?

Typical but good that they are slowly starting to catch some of these people.

There is a lot more of it out there.

Probably every cleaning company in Australia will be found guilty of the same thing.

One way they try and get round it it to hire "contractors"

The truth is we don't value cleaners enough to pay them right.

miketrees wrote on Jan 7^th, 2016 at 6:59am:

Probably every cleaning company in Australia will be found guilty of the same thing. One way they try and get round it it to hire "contractors" The truth is we don't value cleaners enough to pay them right.

here on planet earth which i call "reality'
if you dont have many skills

you
dont
get
much

MONEY !!!!!!!!!

If you think cleaners are not skilled ,,, you are wrong

i have a friend who cleans domestic houses for 30 an hour cash and she turns away business all the time.

again, cleaners who are a bit "entrepreneurial" could do very well.

but i doubt she would consider herself "highly skilled"

she is studying nursing online to do something more meaningful (and this will involve a drop in pay).

again, this is foolish,
when an industry like nursing is paying 23 an hour to an EN, it is obvious that society does not "value" this work so dont do it.

the market is the market is the market.
and , here on planet earth, the market is "reality"

Here on planet earth, there are laws that say people should be paid the correct amount of wages.   ;) 

aquascoot wrote on Jan 7^th, 2016 at 7:15am:

i have a friend who cleans domestic houses for 30 an hour cash and she turns away business all the time. again, cleaners who are a bit "entrepreneurial" could do very well. but i doubt she would consider herself "highly skilled" she is studying nursing online to do something more meaningful (and this will involve a drop in pay). again, this is foolish, when an industry like nursing is paying 23 an hour to an EN, it is obvious that society does not "value" this work so dont do it. the market is the market is the market. and , here on planet earth, the market is "reality"

I dont suppose she is a little old immigrant lady that speaks little or no English, who cant pick and choose what work she can get.

stunspore wrote on Jan 7^th, 2016 at 6:04am:

So a union has to take it up to fight for workers?

Nowhere in the story does it say that about the Union. It was the Fair Work Ombudsman, not the Union.

wrote on Jan 7^th, 2016 at 7:41am:

Here on planet earth, there are laws that say people should be paid the correct amount of wages.   ;)

:)the correct ammount of wages will be determined by the market.
here on planet earth, to think otherwise is just
NAIVE  ;) ;) ;) ;)

United Voice raised the alarm over MCG underpayment claims in 2014. The union's own investigation estimated cleaners were owed $500,000 for a four-year period.   :(

Did Chris Gales flash to them, too?

I guess they didn't enter an agreement with Shorten, to cut wages.

Therefore they are guilty. You can't just pay the same wages as the opposition.

aquascoot wrote on Jan 7^th, 2016 at 7:03am:

miketrees wrote on Jan 7th, 2016 at 6:59am: Probably every cleaning company in Australia will be found guilty of the same thing. One way they try and get round it it to hire "contractors" The truth is we don't value cleaners enough to pay them right. here on planet earth which i call "reality' if you dont have many skills you dont get much MONEY !!!!!!!!!

Like any service how much is it worth to have a clean business premises ?

Like any service how much is it worth to have a clean business premises ?

The problem is that cleaning companies are charging the correct rates, yet they are not paying their staff what they are meant to by law.

Some companies are worse than others.

miketrees wrote on Jan 7^th, 2016 at 6:17pm:

Like any service how much is it worth to have a clean business premises ? The problem is that cleaning companies are charging the correct rates, yet they are not paying their staff what they are meant to by law. Some companies are worse than others.

That is the intrinsic problem with outsourcing.

If the cleaner is employed by the company they need pay the correct pay rate. If the cleaner is employed by an out source company their effective income or productive work needs to pay for the management of the company the companies profit the support administrative staff and their wage.

Outsourcing can not be cheaper than employee your own cleaners if the employee is paid a decent rate of pay.

If the Government and Unions wanted to fix the problem,,, they should employ me because I know all the dirty tricks they get up to.

But neither the government or unions want to stamp out underpaying.

Dnarever wrote on Jan 7^th, 2016 at 10:16am:

aquascoot wrote on Jan 7th, 2016 at 7:03am: miketrees wrote on Jan 7th, 2016 at 6:59am: Probably every cleaning company in Australia will be found guilty of the same thing. One way they try and get round it it to hire "contractors" The truth is we don't value cleaners enough to pay them right. here on planet earth which i call "reality' if you dont have many skills you dont get much MONEY !!!!!!!!! Like any service how much is it worth to have a clean business premises ?

The market will decide .
If its easy work, you wont get much.

I met the guy who has the contract to clean out the Sunshine Coast sewerage treatment plant when it gets  clogged.

he has to scuba dive into virtually raw sewerage.
He makes more money then a senator.

he is a cleaner of sorts but has made himself "more valuable"

:) :)

aquascoot wrote on Jan 8^th, 2016 at 8:05am:

Dnarever wrote on Jan 7th, 2016 at 10:16am: aquascoot wrote on Jan 7th, 2016 at 7:03am: miketrees wrote on Jan 7th, 2016 at 6:59am: Probably every cleaning company in Australia will be found guilty of the same thing. One way they try and get round it it to hire "contractors" The truth is we don't value cleaners enough to pay them right. here on planet earth which i call "reality' if you dont have many skills you dont get much MONEY !!!!!!!!! Like any service how much is it worth to have a clean business premises ? The market will decide . If its easy work, you wont get much. I met the guy who has the contract to clean out the Sunshine Coast sewerage treatment plant when it gets  clogged. he has to scuba dive into virtually raw sewerage. He makes more money then a senator. he is a cleaner of sorts but has made himself "more valuable" :) :)

The market has never made a decision in its life, it is a group of sock puppets pretending to speak for the market.

The ease of the work contributes little to the price paid for it. It has more to do with the business strategy used to artificially force wages down to unrealistic levels.

The vast majority of the time it is the people payed the least who work by far the hardest.

Dnarever wrote on Jan 8^th, 2016 at 8:14am:

aquascoot wrote on Jan 8th, 2016 at 8:05am: Dnarever wrote on Jan 7th, 2016 at 10:16am: aquascoot wrote on Jan 7th, 2016 at 7:03am: miketrees wrote on Jan 7th, 2016 at 6:59am: Probably every cleaning company in Australia will be found guilty of the same thing. One way they try and get round it it to hire "contractors" The truth is we don't value cleaners enough to pay them right. here on planet earth which i call "reality' if you dont have many skills you dont get much MONEY !!!!!!!!! Like any service how much is it worth to have a clean business premises ? The market will decide . If its easy work, you wont get much. I met the guy who has the contract to clean out the Sunshine Coast sewerage treatment plant when it gets  clogged. he has to scuba dive into virtually raw sewerage. He makes more money then a senator. he is a cleaner of sorts but has made himself "more valuable" :) :) The market has never made a decision in its life, it is a group of sock puppets pretending to speak for the market. The ease of the work contributes little to the price paid for it. It has more to do with the business strategy used to artificially force wages down to unrealistic levels. The vast majority of the time it is the people payed the least who work by far the hardest.

No doubt about it.
working hard wont do it for you.
If you milk cows 80 hours a week and sell to woolies for 19 cent s a litre , you are not seeking to "improve"

If you form a co op, produce powdered milk for the chinese market and sell at $2 a litre, you are "improving".  You have found a new market.

just like the cleaner who put on the scuba gear.

improvement should be the number one focus of every worker.

learn to work harder on yourself then you ever do on your job.

Dont ask what you are earning in a certain job, ask what are you "becoming"

aquascoot wrote on Jan 8^th, 2016 at 8:38am:

Dnarever wrote on Jan 8th, 2016 at 8:14am: aquascoot wrote on Jan 8th, 2016 at 8:05am: Dnarever wrote on Jan 7th, 2016 at 10:16am: aquascoot wrote on Jan 7th, 2016 at 7:03am: miketrees wrote on Jan 7th, 2016 at 6:59am: Probably every cleaning company in Australia will be found guilty of the same thing. One way they try and get round it it to hire "contractors" The truth is we don't value cleaners enough to pay them right. here on planet earth which i call "reality' if you dont have many skills you dont get much MONEY !!!!!!!!! Like any service how much is it worth to have a clean business premises ? The market will decide . If its easy work, you wont get much. I met the guy who has the contract to clean out the Sunshine Coast sewerage treatment plant when it gets  clogged. he has to scuba dive into virtually raw sewerage. He makes more money then a senator. he is a cleaner of sorts but has made himself "more valuable" :) :) The market has never made a decision in its life, it is a group of sock puppets pretending to speak for the market. The ease of the work contributes little to the price paid for it. It has more to do with the business strategy used to artificially force wages down to unrealistic levels. The vast majority of the time it is the people payed the least who work by far the hardest. No doubt about it. working hard wont do it for you. If you milk cows 80 hours a week and sell to woolies for 19 cent s a litre , you are not seeking to "improve" If you form a co op, produce powdered milk for the chinese market and sell at $2 a litre, you are "improving".  You have found a new market. just like the cleaner who put on the scuba gear. improvement should be the number one focus of every worker. learn to work harder on yourself then you ever do on your job. Dont ask what you are earning in a certain job, ask what are you "becoming"

A thing that a lot of people never work out is that inspirational claptrap s not something that works with a one size fits all approach. It tends to be great for people with some aptitudes like sales people accountants or educators etc but buy and large technical people see straight through it and see it as a useless load of bull shite.

More nonsense about "free market".  Right now in Europe, there are so many asylum seekers, so if those countries use that human resource, they can bring wages down super low - after all, I'm sure they are willing to work for a few meals a day.  That will no doubt raise productivity (according to the lib supporters who espouse low wages = good workers). 

Free markets are subjected to manipulation - and this causes those who are honest to take a hit.  So you regulate this to keep it fair, but then this becomes an intervention that really isn't as "free" as it was before.

What's interesting that quite a few libs are religious e.g. abbott, are not charitable/humble to their fellow humans, especially to those less well off.

Yeh no doubt people complain about how unfair handouts are or how much tax they pay, but that's the price for a society that tries to look after everyone.  If society didn't, it would be a dark society indeed - like all those dystopic societies in movies where strong feed off the weak.