A NSW cleaning contractor used by universities, hotels and retailers has been fined $80,000 by the Federal Court for threatening to sack 12 cleaners if they did not sign Australian Workplace Agreements that cut their pay.
The case, brought by the Fair Work Ombudsman, dates from the days of the Howard government’s Work Choices, but the regulator says the fine is a warning that employers cannot use coercion when negotiating wages.
Last week the ombudsman raided 16 Sydney CBD office towers looking for underpaid cleaners, and as a result is investigating cleaning companies for the non-payment of toilet cleaning allowances, failure to pay overtime and illegal cash payments that fell below the award rate.
"The cleaning industry contains a significant number of low-paid workers who are vulnerable to exploitation because they often not fully aware of their workplace rights and sometimes have limited English skills," the ombudsman’s executive director, Michael Campbell, said.
"The courts have shown they are prepared to impose significant penalties."
The Federal Court found Cleaners NSW, which employs more than 800 cleaners, had set in place a deliberate scheme to threaten its staff and force them on to AWAs.
The national secretary of the Liquor, Hospitality and Miscellaneous Workers Union, Louise Tarrant, said exploitation was exacerbated by the high number of new migrants and foreign students working for subcontractors.
"The cleaning industry is unravelling for reputable companies. They are unable to compete as people try to undercut one another," she said.
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