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FWOFair Work Ombudsman · 25 June 2024

Fair Work Ombudsman

Citation: FWO-2024-06-26-acug-eu-media-release

At a glance

Penalty
$149,000
Employees affected
923
Awards cited
MA000173

What happened

A.C.U.G. (NSW) Pty Ltd and A.C.U.G. (SA) Pty Ltd, part of the Australian Container Unloading Group (ACUG), have signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman. They failed to pay minimum hourly rates to 923 casual employees who unloaded containers between July 2017 and March 2022. The businesses paid employees per container unloaded, a piece rate, which did not meet minimum wage requirements under the Road Transport and Distribution Award. They also failed to keep adequate records of hours worked. The companies are based in Sydney (NSW) and Adelaide (SA).

What was decided

The Fair Work Ombudsman secured an Enforceable Undertaking (EU) from A.C.U.G. (NSW) Pty Ltd and A.C.U.G. (SA) Pty Ltd. The companies will back-pay approximately $149,000 in underpayments, including superannuation, to 923 employees. $39,702 was back-paid to 697 NSW employees and $63,023 to 226 SA employees. A further $46,546 will be paid to the unclaimed monies fund. They must also pay a $81,000 contrition payment to the Commonwealth. The EU requires independent auditing and workplace relations training. As Fair Work Ombudsman Anna Booth stated, 'an EU was appropriate as the companies had cooperated...and demonstrated a strong commitment to rectifying underpayments.'

What it means for employers

Employers must ensure piece rates meet minimum hourly wage requirements as stipulated by relevant awards. Accurate record-keeping of employee hours is a legal requirement and crucial for compliance. Investing in systems and processes to ensure full lawful entitlements are met is essential. Independent auditing and manager training are recommended to prevent future breaches.

What it means for employees

Employees who worked for A.C.U.G. (NSW) Pty Ltd or A.C.U.G. (SA) Pty Ltd between July 2017 and March 2022 may be entitled to back-payments. Employees can check the Fair Work Ombudsman’s website to see if unpaid wages are being held for them. Seek advice from the Fair Work Infoline or a union if needed.

underpaymentcasual-conversionpenalty-ratesgeneral-protectionsmisclassificationmodern-award-variationwage-theftrecord-keeping

Every statement above is drawn from the published decision. Read the original here:

https://www.fairwork.gov.au/newsroom/media-releases/2024-media-releases/june-2024/20240626-acug-eu-media-release

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This summary was drafted by AI from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →

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