By LACHLAN MOORHEAD
CLEANING staff at Myer Fountain Gate have been underpaid, the Fair Work Ombudsman has found.
The investigation revealed nine cleaners at several Myer stores in Melbourne – including Fountain Gate – had been collectively short-changed $6300 for the pay period 4-31 May, this year.
The discrepancies were discovered after Fair Work inspectors made an unannounced visit to the Fountain Gate store last December.
Myer has a services agreement with RCS Cleaning Services, which sub-contracted to Pioneer Cleaning Australia Pty Ltd, which in turn sub-contracted to Preston-based A&K Saana Services.
Myer terminated its contract with Pioneer in June.
The Fair Work inspectors interviewed two Fountain Gate cleaners who worked for contractor A&K Saana Services, which was sub-contracted to clean Myer sites at Fountain Gate, Knox City, Highpoint, and Altona.
The two cleaners were each earning $17 an hour, regardless of the hours and days they worked. One was an employee, the other purportedly an independent contractor.
The Fair Work Ombudsman subsequently determined they should both have been classified as employees and been paid at least $22.51 an hour.
For the pay period 4-31 May, the inspectors found that the nine employees had been short-changed amounts ranging from $225 to $1009.
It was found the employees were underpaid their minimum hourly rate, minimum four-hour engagement period, broken shift allowances, penalty rates for early and late shifts, overtime rates and penalties for weekend and public holiday work.
A Myer spokesman said the Fair Work Ombudsman had informed the company on 14 July that a “sub-contractor of Pioneer Facilities Services had acknowledged it was in breach of the Fair Work Act”.
“Prior to this, Myer had been working with the FWO in its investigation into the cleaning services provided by Pioneer and its sub-contractors,” the spokesperson said.
“Over the past six months, Myer has also sought further information from Pioneer Facilities Services to demonstrate its (and its subcontractors’) compliance with workplace laws.
“Despite repeated requests, Pioneer Facilities Services did not provide us with enough information to satisfy Myer.
“Subsequently, Myer made the decision to terminate its contract with Pioneer in June 2015.”
As a result of the findings A&K director Admir Kolakovic has entered into an Enforceable Undertaking (EU) with the ombudsman.
Enforceable Undertakings were introduced by legislation in 2009 and used against companies alleged to have breached workplace laws, without the need for civil court proceedings.
A&K Saana Services is one of a number of sub-contractors to Pioneer that has been found to have misclassified and underpaid its workers.
Employers with any uncertainty about whether their workplace practices are appropriate or not can visit www.fairwork.gov.au, or call the Fair Work Infoline on 13 13 94 for advice.
