Recycling company underpaid workers almost $300,000, watchdog alleges
June 15th, 2009
The Federal Workplace Ombudsman is prosecuting a recycling company for allegedly underpaying a number of its Canberra staff almost $300,000.
The Workplace Ombudsman has initiated legal proceedings against Aussie Junk Pty Ltd – which trades as Aussie Junk Recycling – and operates in Cabnberra and other locations.
The Agency is also prosecuting the company’s sole director, Dennis Richter, of Lake Albert, alleging he was complicit in the underpayments and unlawfully sacked three of the workers after they complained.
The staff who were allegedly underpaid, some of whom still work for Aussie Junk, were employed at the Mitchell resource and recycling depot in Canberra.
Documents filed in the Federal Magistrates Court in Canberra allege that Aussie Junk underpaid 10 Canberra employees their entitlements, including the minimum hourly rate, overtime, casual loadings, various allowances and payment on termination of employment between 2004 and 2008.
The prosecution papers claim that Richter terminated the employment of three of the allegedly underpaid workers in July last year as a result fo their complaints to the Workplace Ombudsman and the Transport Workers Union.
It is also alleged that Aussie Junk failed to maintain records containing sufficient details of matters such as hours worked and leave taken by employees.
Workplace Ombudsman Executive Director Michael Campbell says it will be alleged in Court that Aussie Junk underpaid 10 employees a total of about $280,000, with the biggest underpayment of an individual workers being $83,000.
Mr Campbell says it will be alleged some employees were paid as little as $50 cash-in-hand for nine-hour Sunday shifts at the garbage dump site.
“Our decision to prosecute Aussie Junk and Richter follows their refusals to fully rectify the alleged underpayments or co-operate with workplace inspectors,” he said.
The Workplace Ombudsman is seeking a Court Order for all money owed to be repaid and for penalties against the company and Richter.
The maximum potential penalty per breach of the Act is $33,000 for Aussie Junk and $6600 for Richter.
www.wo.gov.au Wednesday 10th June 2009