Marvel Stadium cleaners paid just $7 an hour, says workplace regulator
Quayclean, the company that services some of Australia’s biggest stadiums including Marvel Stadium, is being targeted over worker underpayments.
Business
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The cleaning company that services major sports grounds Marvel Stadium, the SCG, Adelaide Oval and the Gabba is being targeted by the Fair Work Ombudsman over worker underpayments.
The workplace regulator has launched Federal Court action against Melbourne-based Quayclean Australia and two companies it subcontracted work to for allegedly underpaying 25 cleaners $99,637.
Some of the cleaners, who were working at Marvel Stadium at the time of the alleged underpayments, received just $7 an hour, the Fair Work Ombudsman has claimed.
The alleged underpayments were made over the six months to June 2017 and average out to about $4000 for each worker.
Quayclean is one of the nation’s biggest providers of cleaning services to sports venues and also cleans GMHBA Stadium in Geelong and Metricon Stadium on the Gold Coast.
The Fair Work Ombudsman took action against Quayclean and its subcontractors after carrying out a late night visit to Marvel Stadium, branded Etihad at the time, while it was being cleaned following an AFL match.
Quayclean holds the principal contract to provide cleaning services at Marvel Stadium.
The workers who were allegedly underpaid were employed by Quayclean subcontractors Ranvel and Lionheart.
Melbourne-based Ranvel is owned by Indika Udara Lokubalasuriya while Lionheart is owned by Harjot Singh.
Lionheart was placed into voluntary administration in September.
The Fair Work Ombudsman alleges the workers received flat rates of pay when they should have been receiving minimum ordinary hourly rates, casual loadings and penalty rates.
Ranvel and Mr Lokubalasuriya allegedly paid 14 cleaners a flat rate of $16 an hour, resulting in total underpayments of $24,498.80.
Lionheart and Mr Singh allegedly paid 11 cleaners flat hourly rates ranging from $7 to $23 an hour, resulting in total underpayments of $75,138.26.
The Fair Work Ombudsman has also alleged Quayclean knew the money it was paying Ranvel and Lionheart was not sufficient to cover the legal pay rates for cleaners they were employing.
Quayclean chief Mark Piwkowski told Business Daily the company had conducted a review of its operations immediately after the Fair Work Ombudsman inspection.
It has since adopted a “fully employed labour model” and now only used subcontractors for specialty cleaning jobs such as high windows, Mr Piwkowski said.
“There is no allegation that Quayclean has ever underpaid its employees,” Mr Piwkowski said.
“The fully employed labour model was implemented at Marvel Stadium within 10 days of the FWO (Fair Work Ombudsman) inspection in 2017 and has since been included in all new and renewed contracts.”
Fair Work Ombudsman Sandra Parker told Business Daily that addressing supply-chain risks is a key focus for the workplace regulator.
“The Fair Work Ombudsman prioritises any matters involving a supply chain in the cleaning sector,” Ms Parker said.
“Workers employed in this sector are low-paid, often vulnerable migrant workers with limited understanding of their workplace rights.
“We investigated this matter after receiving an underpayment allegation through FWO’s online anonymous report tool.”
Ms Parker said the alleged underpayment amounts owed to the Ranvel and Lionheart employees had been rectified in full.
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Ms Parker said she also wanted to see cleaning companies sign onto the Cleaning Accountability Framework which aims to improve employment standards in the industry.
The action against Quayclean follows a raft of problems with underpayments coming to light over the past 18 months.
They include scandals at Woolworths, Bunnings, Sunglass Hut, Michael Hill International, Super Retail Group, Qantas Airways, the Commonwealth Bank and IBM, as well as restaurant groups backed by high-profile chefs including George Calombaris and Neil Perry.