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.

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

There is a lot more of it out there.

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



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

you
dont
get
much

MONEY !!!!!!!!!

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"

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


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.

Quote:



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

Did Chris Gales flash to them, too?

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


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