Ombudsman will probe Palmer's 'toxic' resort

CLIVE Palmer's Queensland dinosaur park and tourism resort are at the centre of a probe by the Fair Work Ombudsman.

CLIVE Palmer's Queensland dinosaur park and tourism resort are at the centre of a probe by the Fair Work Ombudsman after serving and former staff complained of severe bullying, abuse, false claims of theft, intimidation and the stripping of entitlements.

Brisbane-based inspectors from the Commonwealth Fair Work Ombudsman's office have been conducting a preliminary investigation into the allegations from staff, including Mr Palmer's former security manager, Mike Hennessy. He described the Sunshine Coast workplace as "toxic" and claimed that Mr Palmer was a "tyrannical bully".

The office of Fair Work Ombudsman Natalie James said yesterday the allegations were of sufficient concern to warrant immediate scrutiny. Inspectors want to obtain documents, talk to former and serving staff, and interview management. Informants have been told they can raise the issues confidentially.

It is unlawful to withhold entitlements. "The Fair Work Ombudsman is conducting inquiries into allegations relating to the entitlements of staff at the Palmer Coolum Resort in Queensland to determine whether to commence an investigation," a spokesman said yesterday.

"Inspectors . . . have contacted management on site and will visit the . . . resort (today) to speak with management and employees."

The action comes as a solicitor for Mr Palmer yesterday warned Mr Hennessy he faced being sued for defamation.

The legal letter to Mr Hennessy said he had suggested that Mr Palmer "is a cruel and an oppressive employer, causes persons to feel extreme fear and fill with terror, shouts angrily and wildly towards others, holds members of his electorate with contempt and is not of good fame and character to uphold his position as federal member of parliament". It said that these claims were causing Mr Palmer significant "hurt and damage".

Mr Palmer has repeatedly and strenuously denied the claims, adding after a speech at the National Press Club in Canberra on Tuesday that as a "full-time politician", he was now retired from his business interests and no longer had any responsibility for companies he directed.

Under Corporations Law, Mr Palmer's status as director of the companies he owns, including those for the resort and the Queensland Nickel refinery at Townsville, makes him personally responsible.

Mr Palmer has described reports of the bullying and exodus of staff as fiction and "beat-ups".

Mr Palmer, who was accused by Queensland Premier Campbell Newman yesterday of having tried to intimidate and bully him in private, countered that Mr Newman had a "bipolar" mental condition needing medication, and that Mr Hennessy was a "lowly paid security guard".

Staff including managers who have contacted The Australian have claimed that few have spoken out previously because they feared Mr Palmer's record for litigation would see them bearing significant legal costs.

Since Mr Palmer bought the once-iconic resort from Lend Lease in 2011, he has renamed it after himself, sacked Hyatt, terminated the annual Australian PGA Golf championship, populated the site with dinosaurs, and cut staff from more than 650 to about 150. Occupancy has slumped to unprecedented levels below 5 per cent, and sources have told The Australian the losses are about $1 million a month. The local community and economy of Coolum, part of the federal seat of Fairfax now held by Mr Palmer after his Palmer United Party's September election success, have been hit hard by the job losses and a lack of visitors.

Mr Hennessy said in a bid to counter scathing reviews of the resort by visitors, two men were hired to write bogus positive reviews on the website Trip Advisor.

Senior and junior employees have said this week that the working conditions had become intolerable, prompting staff, some with many years of service, to resign and walk away despite having ongoing financial commitments and no job to go to.

A manager said that at a recent meeting "we were told by Clive we are a bunch of thieving c . . ts and (he would) close the resort".

Grace Collier, the head of Australian Dismissal Services, said the concerns raised had prompted her to bring some of the matters to the Fair Work Ombudsman yesterday.