Potato farmer Russell McCrystal admits unlawful treatment of workers

A Bundaberg potato farmer has admitted to ripping off his migrant workers to the tune of almost $20,000.

Potato farmer Russell McCrystal. Photo Paul Beutel

The director of a potato farm has faced court on allegations he ripped off temporary workers using illegal alcohol fines.

Russell McCrystal, sole director of McCrystal Agricultural Services, was prosecuted by the Fair Work Ombudsmen over allegations migrant employees faced unlawful deductions from their pay for breaching the company’s alcohol policy while working on the farm at South Kolan.

Court documents state McCrystal admitted to the allegations listed in a statement of claim filed in September.

Among the contraventions listed was an alcohol policy designed to “control the workers”, Bundaberg PALM scheme worker advocate Geoffrey Smith said.

“He’s the pin up for this [PALM] program,” he said.

The farm workers from Vanuatu performed menial tasks such as cutting and sorting sweet potato vine into bundles, planting and packing sweet potatoes, weeding, general farm hand tasks, and constructing boxes for packaging.

Any employee determined to be in breach of the company’s alcohol police, which stated workers could not be under the influence of alcohol while staying in worksite accommodation, was fined $500.

Between January and March, 2022, 29 employees, most of whom lived on the farm, faced fines under the alcohol policy, totalling $14,500.

Farmer Russell McCrystal on his Sweet potato nursery. Photo Paul Beutel

A release from the Fair Work Ombudsman said McCrystal ripped off his workers for $2.50 a week under the guise of health insurance premiums, leaving 27 full-time employees out-of-pocket by almost $50 over four months.

McCrystal was also in breach of Section 324 of the Fair Work Act which outlines that an employer can only deduct money from an employee’s wages if it has been authorised in writing by the employee and is principally for the employee’s benefit.

The FWO found McCrystal attempted to recoup funds from 28 casuals after an overtime error in August 2021 by deducting almost $2600 from their wages the following pay period.

$18,331 was also unlawfully deducted from 66 employees who were covered by the Horticulture Award 2020, for work performed between August 2021 and March 2022.

“As part of the deductions related to overpayments, the FWO alleges that the total underpayments were $15,782 to 39 different employees” the FWO reported.

Some employees were left with only $150 net pay one particular week after the unlawful alcohol-policy deductions.

Farmer Darren McCrystal with former employees on his potato farm. Photo Paul Beutel

Fair Work Ombudsman Anna Booth said the litigation highlighted the importance the workplace regulator placed on the rights of visa holders.

“Acting to protect visa holder workers and ensuring compliance across the agriculture sector are priorities for the Fair Work Ombudsman,” Ms Booth said.

“That focus includes ensuring any deductions from the wages of vulnerable PALM scheme workers are lawful and appropriate. We will hold employers to account.

“Deductions are lawful in a limited range of situations, and employers must understand those laws. We have a range of information to help employers get it right.

“The visa holder workers allegedly underpaid in this case were only in Australia for a limited period and were highly reliant on their employer.

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance.”

The Fair Work Ombudsman is seeking penalties against McCrystal Agricultural Services Pty Ltd and Mr McCrystal for alleged contraventions of the Fair Work Act.

The company faces penalties of up to $66,600 per contravention and Mr McCrystal faces a penalty of up to $13,320.

McCrystal is set to reappear in Brisbane for a penalties hearing in the new year.