OMBUDSMAN – AUSTRALIA

Slavery law to protect supply chains

roymorgansocial Leave a comment

Original article by Adele Ferguson
The Australian Financial Review – Page: 40 : 5-Jun-17

The Federal Opposition will announce on 5 June 2017 that it plans to enact an Australian Modern Slavery Act. The proposed Act has the support of the Business Council of Australia, the union movement and Wesfarmers, which has noted the difficulty of ensuring that all parts of its supply chain are run ethically. The Global Slavery Index estimates that there are 4,300 slaves in Australia. Meanwhile, Fair Work Ombudsman Natalie James has confirmed to a recent Senate hearing that it is investigating pizza maker Domino’s over its possible involvement in wage fraud.

CORPORATES
AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, AUSTRALIA. FAIR WORK OMBUDSMAN, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, LIBERAL PARTY OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, PIZZA HUT AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN GREENS, BAIN CAPITAL LLC, DEUTSCHE BANK AG

Ten new probes into Domino’s

roymorgansocial Leave a comment

Original article by Mario Christodoulou
The Age – Page: 20 : 1-Jun-17

Domino’s Pizza Enterprises has advised that the scale of its internal investigation into wage fraud means a report on the probe will be released up to six months behind schedule. Meanwhile, the Fair Work Ombudsman has indicated that it is now carrying out 26 separate investigations into the underpayment of Domino’s employees. Domino’s CEO Don Meij said earlier in 2017 that about 2,400 employees had been underpaid over a period of three years.

CORPORATES
DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIA. SENATE EDUCATION AND EMPLOYMENT LEGISLATION COMMITEE

Coffee Club franchisee accused of 457 visa rorts

roymorgansocial Leave a comment

Original article by David Marin-Guzman
The Australian Financial Review – Page: 6 : 4-May-17

The Fair Work Ombudsman is prosecuting a cafe franchisee for exploiting a foreign employee who was recruited on a 457 visa. Saandeep Chokhani, a Brisbane-based Coffee Club franchisee, has been accused of underpaying the 457 visa holder. It has also been alleged that Chokhani told the employee that his visa would be cancelled if he did not repay some $A18,000 of his wages. A cafe was fined more than $A530,000 earlier in 2017 for exploiting 457 visa holders via a cashback arrangement.

CORPORATES
AUSTRALIA. FAIR WORK OMBUDSMAN, THE COFFEE CLUB PTY LTD, FEDERAL CIRCUIT COURT OF AUSTRALIA

Major banks reduce legal powers over SME customers

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 16 : 1-May-17

All four of Australia’s major banks have made changes to the terms of their loans to small businesses. The changes, which were recommended by small business ombudsman Kate Carnell, relate to "non-monetary default" clauses in loan contracts. The changes will apply to loans of up to $A3 million, although in the case of Westpac and the ANZ, they will only apply to new loans or when an existing loan is being renewed or modified. The Commonwealth Bank and National Australia Bank will apply the changes to both new and existing loans.

CORPORATES
AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN BANKERS’ ASSOCIATION

Ombudsman calls for tough work penalties

roymorgansocial Leave a comment

Original article by Anna Patty
The Age – Page: 21 : 13-Apr-17

Fair Work Ombudsman Natalie James addressed a Senate inquiry on 12 April 2017. She conceded that the FWO has limited capacity to combat employers who deliberately ignore workplace laws because they feel that the potential financial penalties for underpaying staff are sufficiently low to make non-compliance worth the risk. James warned that employers will continue to exploit vulnerable workers unless the sanctions for non-compliance are sufficiently increased to provide a genuine deterrent. The inquiry is examining proposed changes to the Fair Work Act.

CORPORATES
AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIA. SENATE EDUCATION AND EMPLOYMENT LEGISLATION COMMITEE, 7-ELEVEN STORES PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CALTEX AUSTRALIA LIMITED – ASX CTX

Coles to reduce pay time for suppliers to 14 days

roymorgansocial Leave a comment

Original article by Fleur Anderson
The Australian Financial Review – Page: 2 : 3-Mar-17

Small Business & Family Enterprise Ombudsman Kate Carnell will shortly make recommendations on sanctions for large companies that do not pay suppliers promptly. Meanwhile, Coles has committed to reducing its payment terms for many smaller suppliers from an average of 30 days to no more than 14 days. Coles MD John Durkan stresses that the new policy, which takes effect from mid-2017, is being introduced independently of Carnell’s review of payment terms.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, RED KELLY’S GOURMET FOODS PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MARKET INVOICE

Hotel chain ripped off migrant cleaners

roymorgansocial Leave a comment

Original article by Ewin Hannan
The Australian – Page: 6 : 9-Nov-16

An audit undertaken by Oaks Hotels and Resorts revealed that 1,502 migrant workers were collectively underpaid some $A1.9m in the year to August 2016. The hotel chain undertook the audit after the Fair Work Ombudsman threatened to launch legal action over allegations of wage exploitation by an Oaks subsidiary, Housekeepers Pty Ltd. The company had deemed the migrant workers at 40 of its hotels to be independent contracts rather than employees. It initially provided 16 workers with some $A13,000 in back pay, but the FWO subsequently found that the underpayments had continued.

CORPORATES
OAKS HOTELS AND RESORTS LIMITED, HOUSEKEEPERS PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, UNITED VOICE, 7-ELEVEN STORES PTY LTD, CALTEX AUSTRALIA LIMITED – ASX CTX

Ombudsman wary of tribunal

roymorgansocial Leave a comment

Original article by Sally Rose
The Australian Financial Review – Page: 21 : 9-Sep-16

The Financial Ombudsman Service’s chief ombudsman Shane Tregillis has spoken against a proposal to set up a new banking tribunal. He believes that such a tribunal would make the dispute resolution system more adversarial and legalistic. Tregillis has suggested that the proposal should be examined by the independent panel led by Ian Ramsay which will conduct a review of the financial services sector’s dispute resolution and complaints system.

CORPORATES
FINANCIAL OMBUDSMAN SERVICE LIMITED, CREDIT AND INVESTMENTS OMBUDSMAN, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. SUPERANNUATION COMPLAINTS TRIBUNAL, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, AUSTRALIAN BANKERS’ ASSOCIATION

Coalition to beef up Fair Work

roymorgansocial Leave a comment

Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 2 : 19-May-16

The Australian Government will strengthen the powers of the Fair Work Ombudsman if it wins the 2016 election. It will also significantly increase the financial penalties for employs who underpay their staff. The FWO will also receive a $A20m increase in funding, while a Migrant Worker Taskforce will be established within the FWO in the wake of the 7-Eleven wage exploitation scandal. The taskforce will be led by Professor Allan Fels, who headed 7-Eleven’s now-defunct independent compensation panel.

CORPORATES
AUSTRALIA. FAIR WORK OMBUDSMAN, 7-ELEVEN STORES PTY LTD, AUSTRALIA. DEPT OF EMPLOYMENT, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN TAXATION OFFICE

7-Eleven’s legal woes

roymorgansocial Leave a comment

Original article by Sarah Danckert
The Age – Page: 24 : 7-Apr-16

Australia’s Fair Work Ombudsman alleges that 7-Eleven franchisee Jim Chien-Ching Chang falsified payroll records and underpaid eight employees. One employee is said to be owed more than $A13,000 in unpaid wages, while the Ombudsman claims that none of Chang’s employees were paid shift worker allowances or weekend penalty rates. 7-Eleven employees have been paid about $A10m to date via a compensation scheme that was established in the wake of the wage exploitation scandal in 2015.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, JS TOY PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION