Coles, Woolies warned about trolley worker exploitation

Rose Powell
August 29, 2014
The Age
Australia’s 1500 trolley workers are among the most vulnerable in the country, the Fair Work Ombudsman has found.
The Fair Work Ombudsman has warned the major supermarket chains could face penalties if they fail to ensure trolley workers are paid fairly.
In a speech on Friday, Fair Work Ombudsman Natalie James said she was concerned the grocery giants were solely focused on cost, placing vulnerable staff at risk.
“Big companies sub-contracting out services on their sites have a responsibility to ensure those contracts do not undercut minimum employee entitlements,” Ms James said.
“This responsibility extends to supply-chain contractors. Just because a company doesn’t ‘own’ the contract doesn’t mean it can wash its hands of it.”
The announcement came as Woolworths, the nation’s biggest retailer, announced a $2.45 billion profit on Friday, up 8.5 per cent from last year.
Woolworths and Coles are the highest users of trolley workers across the country, having those services managed by sub-contractors.
Ms James said while the responsibility for underpayment ultimately rested with the direct employer, companies higher up the food chain could be subject to penalties if found to be involved in contravening workplace laws under section 550 of the Fair Work Act.
“In a nutshell, this means that turning a blind eye at the top of the procurement chain can be risky,” Ms James said.
Trolley workers are among Australia’s most vulnerable, and according to the Ombudsman, also the most exploited group of workers, along with cleaners and security workers.
Census data shows almost a third of the 1500-strong trolley workforce are younger than 20, and almost half (40 per cent) do not have schooling beyond year 10. A third were born outside Australia and many have limited English.
“They are at greater risk that an unscrupulous employer may deliberately take advantage of their vulnerability,” Ms James said.
The Ombudsman is currently pursuing four cases before the courts.
In the last six years, more than $400,000 worth of underpaid wages has been recouped by workers through 11 separate court cases.
Cases included workers being paid $5 an hour, systemic underpayment of more than a third of the workforce across Australia and one man with limited English not being paid for six weeks.
One major trolley services provider, United Trolley Collections, has signed a Proactive Compliance Deed with Fair Work to ensure the 60 independent contractors it works across 700 Coles supermarket sites meet their statutory requirements.
This will include training programs, auditing pay packages of at least 10 per cent of workers as well as liaising with subcontractors when underpayment and condition complaints emerge.
The Australian National Retailers Association has been contacted for comment.