Fair Work Ombudsman accused of ‘secrecy’ over underpaying employers

The workplace regulator wants to keep confidential the names of more than 30 employers that have admitted underpaying their workers.

Labor Senator Tony Sheldon has called for a public inquiry into wage theft. Picture: Joel Carrett

The Fair Work Ombudsman is seeking to keep secret the names of more than 30 companies that are under investigation after they admitted underpaying workers.

Following a request from Labor senators for a full list of 70 companies that are being investigated after they “self-reported” underpayments, the ombudsman provided the names of 33 major companies that have publicly revealed they underpaid employees.

The ombudsman provided a separate list of companies to a Senate inquiry but asked the identity of these employers be kept secret as they had only been disclosed to the regulator and not been publicly revealed.

ALP senator Tony Sheldon said “this kind of secrecy is exactly why I agitated for the Senate to have a public inquiry into wage theft”.

“Right now we have a system that leaves an under-resourced Fair Work Ombudsman to negotiate with companies behind closed doors,” he said on Tuesday.

“That means no real justice for workers and little scrutiny of employers trying to game the system.”

The ombudsman acknowledged to the Senate committee that it had not accepted the employer self-disclosures ‘in-confidence’, and any litigated outcome or enforceable undertaking would become public at the earliest appropriate time.

But it said “we ask that the committee exercise its discretion and keep the information in that schedule confidential at this time”.

“We make this request so as to avoid discouraging resolution of these matters on the best possible terms (for the benefit of employees), and so as to avoid discouraging full co-operation and future self-disclosures from employers at the earliest opportunity,” it said.

The companies currently under investigation after publicly revealing underpayments include Woolworths Group Limited, Coles Group Limited, Officeworks, Target, Commonwealth Bank, National Australia Bank, Westpac and Super Retail Group Limited.

Law firm Herbert Smith Freehills, Spotless Group Holdings, Suncorp Group, Australian Red Cross Society, World Vision Australia and Carlton & United Breweries are also being probed for underpaying workers.