ABC airs allegations that Australia Post contractors in Victoria are underpaying staff
A news item included on Australian Broadcasting Corporation’s 7:30 Report yesterday (7 July) alleged that “there are claims some Australia Post contractors in Victoria are underpaying staff, not paying superannuation, and employing foreign students in contravention of visa rules”. Furthermore, the news report added that “the union says Australia Post knows what is going on”.
As previously reported, Australia Post is embarking on a programme of voluntary redundancies in a bid to reduce its costs in the face of falling revenues from its mail business.
Yesterday’s ABC report began with a provocative introduction: “Australia Post is in trouble.
“Its letters business is rapidly dropping and last month it announced it’s putting $190 million into a redundancy pot.
“While it’s been shedding direct employees, the state-owned company has contracted out over 5,000 post and parcel delivery routes to private operators.
“Tonight, 7.30 can reveal claims that some of those contractors in Victoria are underpaying their staff, don’t pay super and employ foreign students in contravention of visa rules.
“It undercuts both Australia Post direct employees and long-serving contractors and the posties’ union claims Australia Post knows exactly what’s going on.”
The report featured an interview with “Bajinder” and “Aman”, former drivers with sub-contractor Harmony Xova. Aman said of his time working for the postal subcontractor: “There was no superannuation and there is no paid leave and the sorting money as well. There is no sorting money. So, .. for two to three hours every day, Monday to Friday, sort the parcels and everything, that is unpaid.”
The report included a comment from solicitors acting on behalf of Harmony Xova which stated: “We deny that each of the … gentlemen … is an employee. Consequently there can be no question of under-Award payment.”
A spokesperson for Australia Post was invited to comment on these claims and stated: “When we tender for those contracts, an important part of that tender process is making sure that the tender price will cover all appropriate wages at award level or above, as appropriate, and superannuation. So, our tender price is set to ensure that that is met. If the organisation or company isn’t passing that on, that’s a matter for them and their workers.”
