WA: workplace 'wages' scams

Investigators believe they have uncovered a scam in which Filipino workers were paid just $210 a week while working on oil rigs in WA's North-West.

Two Perth companies and a director are among those being taken to court over alleged underpayments running into tens of thousands of dollars. Documents lodged with the Federal Court in Perth this week allege four Filipino specialist marine painters on two rigs worked 12 hours a day, seven days a week, but were paid only $840 a month.

The Fair Work Ombudsman says the men were in Australia on sub-class 456 visas and that the underpayments, totalling about $127,000, occurred while they were based at the North-West Shelf between July 2009 and March 2011. The watchdog alleges that because the oil rigs were in Australia's exclusive economic zone, the men were entitled to minimum wage rates, allowances, overtime rates and weekend and holiday rates applicable in Australia.

WA-based company SurveySpec and its sole director Thomas Civiello are facing court action, along with Philippines firm Supply Oilfield and Marine Personal Services, and Hong Kong outfit Pocomwell. 

Ombudsman Nicholas Wilson said it was alleged that the three companies and Mr Civiello were involved in 11 breaches of workplace law. The companies face maximum penalties of $33,000 for each breach if convicted, while Mr Civiello could be fined up to $6600 a breach.

The Fair Work Ombudsman has also launched a prosecution against Ultra Tune Australia after a Filipino mechanic working at the now closed Warwick branch on a 457 visa was allegedly paid a flat hourly rate of only $15.34, which is below the minimum hourly and overtime rates.

Federal Court documents claim he was underpaid a total of $21,700 between February 2006 and January 2008. It is alleged that Ultra Tune further breached workplace laws by failing to keep proper employment records for 10 Filipino workers it employed through 457 visas to work in WA, Victoria and Queensland. The company faces maximum penalties of up to $33,000 for each breach. The cases are listed for hearings in August and November.

 It was revealed in 2009 that five Chinese migrant workers in Perth were paid as little as $3 an hour while employed by WA construction firm Kentwood Agencies and sometimes working 11 hours a day, seven days a week. In June this year, Kentwood was ordered to pay the workers $242,000 plus interest of about $65,000. Managing director and part-owner Jian Yang Zhang was fined $24,600. The company was fined $123,000 and ordered to pay the Fair Work Ombudsman's legal costs.