Poultry processor Baiada has agreed to reimburse up to $500,000 in wages that contractors failed to pay its labour pool of mostly overseas workers.
The refund is part of a “proactive compliance partnership” with The Fair Work Ombudsman.
As per a statement this week, Baiada has agreed to ensure compliance with workplace laws in the future.
Baiada, which makes the Lilydale and Steggles chicken brands, was investigated by the Fair Work Ombudsman earlier this year over claims it was exploiting vulnerable overseas workers at its facilities.
A large number of workers were 417 working holiday visa-holders recruited by labour-hire contractors through Chinese newspapers, Facebook and Taiwanese backpacker websites.
The Fair Work Ombudsman found non-compliance with a range of Commonwealth workplace laws, very poor or no governance arrangements by all parties in the various labour supply chains, and exploitation of a labour pool comprised predominantly of overseas workers.
According to the the Fair Work Ombudsman, Baiada has now publicly declared that it has a “moral and ethical responsibility” to join with the Fair Work Ombudsman to stamp out its contractors’ unlawful practices at its facilities.
The poultry processing company has also agreed to a proactive compliance partnership with the Fair Work Ombudsman to make good past underpayments by contractors and to continue to implement changes to its practices on its work sites to ensure compliance with workplace laws in the future.
In addition, Baiada will set aside $500,000 to reimburse any current, or former workers found to have been underpaid from 1 January, 2015.
Any funds remaining after 31 May, 2016 will be distributed to various nominated charities.
Baiada managing director Simon Camilleri said many of the measures outlined had already been implemented at Baiada’s processing facilities in recent months.
“We are pleased to enter into a proactive compliance partnership with the Fair Work Ombudsman,” Camilleri said.
“Our ongoing priority is to ensure that contractors’ workers are being paid correctly and treated fairly and that contractors are acting lawfully.
“We look forward to working collaboratively with the Fair Work Ombudsman to ensure transparency and accountability at our processing facilities.”
