CHINESE labourers were flown in to dismantle heavy machinery at the former Mitsubishi car plant and paid as little as $1.90 an hour for the backbreaking work, it has been revealed.
The 24 temporary migrant workers were housed in dormitory-style accommodation in the Adelaide Hills while completing the eight-month job, and were allegedly underpaid more than $131,000 by their employer, a Chinese state-owned company.
The Fair Work Ombudsman has launched Federal Court action against their employer, the Chinese-registered China SANAN Engineering Construction Corporation, alleging two breaches of workplace relations laws.
Fair Work Ombudsman executive director Michael Campbell will allege China SANAN paid the workers between 2005 and 6603 yuan a month, or from $1.90 to $6.75 an hour.
At the time, the Australian federal minimum wage was $14.31 an hour.
China SANAN brought the Chinese workers to Australia to dismantle and remove an automotive press formerly used by Mitsubishi Motors Australia. They worked at the Tonsley Park site from October 29, 2009, until the end of June this year.
Federal Court documents show the Chinese labourers worked a 7.6 hour day and 21.75 days a month during the contract and were entitled to receive at least the federal minimum wage.
"The Fair Work Ombudsman is committed to its role of enforcing Australia's labour standards for overseas workers and will take action against employers who seek to exploit foreign workers," Mr Campbell said.
"Strong and persistent messages need to be sent to employers that both deter this type of behaviour and reinforce the fact that exploitative practices will just not be tolerated."
The Australian Manufacturing Workers Union was aware Chinese workers had been brought in to work at the former car plant but attempts to discover their working conditions were thwarted.
The revelation that they were paid as little as $1.90 an hour outraged union state secretary John Camillo, who described the situation as "a disgrace" and "unbelievable".
"The company knows the industrial relations system in Australia. I just don't know how they could do that," Mr Camillo said.
"We had roadblocks everywhere when we tried to investigate it in December and we were told no, they are not labourers, it is only engineers. I can understand why they wouldn't let us go anywhere near them to talk to these people.
"It is a disgrace and there would have been a lot of people who were aware of that and allowed it to happen. It is more than slave labour. A dollar-something an hour is a big concern and I will be further looking into this to make sure it never, ever happens again."
The Fair Work Ombudsman launched its investigation after receiving information from the Department of Immigration and Citizenship. Workplace inspectors visited the former Mitsubishi site twice in January, three times in February and once in May and interviewed the workers, China SANAN lawyers and Mitsubishi representatives.
Mr Campbell said that foreign companies operating in Australia must comply with Australian workplace laws, including minimum pay rates.
It is alleged the Chinese workers arrived in Adelaide on class 456 visas, which are designed for short-stay business visits of up to three months for specialised, non-ongoing work. These were later cancelled by DIAC.
Mr Campbell said Chinese SANAN reimbursed its workers when they returned to China in March, with an "overseas travel allowance" which satisfied the alleged underpayment of the minimum wage.
Some of the workers subsequently returned on 457 visas which allowed supervised work.
The Chinese workers were believed to have been put up in dormitory-style accommodation in the Adelaide Hills during their stays. The accommodation had its own kitchen and all meals were cooked by a China SANAN employee, including lunch, which was delivered to Tonsley Park daily.
Accommodation and all meals were paid for by the company.
An Immigration Department spokesman yesterday said following discussions with the workers, most of their 456 visas were cancelled and the "more appropriate" 457 visa issued to eligible workers.
"This is not unusual once the department becomes aware that the work being conducted does not fit the requirements of the 456 visa," the spokesman said.
State Industrial Relations Minister Paul Holloway yesterday said that the pay and conditions of the SANAN employees were covered by federal minimum wage provisions.
The highest-ever penalty handed out for underpaying employees from a non-English speaking background was against an Adelaide cleaning company earlier this year. Saya Pty Ltd underpaid two vulnerable workers less than $4000.
The 24 temporary migrant workers were housed in dormitory-style accommodation in the Adelaide Hills while completing the eight-month job, and were allegedly underpaid more than $131,000 by their employer, a Chinese state-owned company.
The Fair Work Ombudsman has launched Federal Court action against their employer, the Chinese-registered China SANAN Engineering Construction Corporation, alleging two breaches of workplace relations laws.
Fair Work Ombudsman executive director Michael Campbell will allege China SANAN paid the workers between 2005 and 6603 yuan a month, or from $1.90 to $6.75 an hour.
At the time, the Australian federal minimum wage was $14.31 an hour.
China SANAN brought the Chinese workers to Australia to dismantle and remove an automotive press formerly used by Mitsubishi Motors Australia. They worked at the Tonsley Park site from October 29, 2009, until the end of June this year.
Federal Court documents show the Chinese labourers worked a 7.6 hour day and 21.75 days a month during the contract and were entitled to receive at least the federal minimum wage.
"The Fair Work Ombudsman is committed to its role of enforcing Australia's labour standards for overseas workers and will take action against employers who seek to exploit foreign workers," Mr Campbell said.
"Strong and persistent messages need to be sent to employers that both deter this type of behaviour and reinforce the fact that exploitative practices will just not be tolerated."
The Australian Manufacturing Workers Union was aware Chinese workers had been brought in to work at the former car plant but attempts to discover their working conditions were thwarted.
The revelation that they were paid as little as $1.90 an hour outraged union state secretary John Camillo, who described the situation as "a disgrace" and "unbelievable".
"The company knows the industrial relations system in Australia. I just don't know how they could do that," Mr Camillo said.
"We had roadblocks everywhere when we tried to investigate it in December and we were told no, they are not labourers, it is only engineers. I can understand why they wouldn't let us go anywhere near them to talk to these people.
"It is a disgrace and there would have been a lot of people who were aware of that and allowed it to happen. It is more than slave labour. A dollar-something an hour is a big concern and I will be further looking into this to make sure it never, ever happens again."
The Fair Work Ombudsman launched its investigation after receiving information from the Department of Immigration and Citizenship. Workplace inspectors visited the former Mitsubishi site twice in January, three times in February and once in May and interviewed the workers, China SANAN lawyers and Mitsubishi representatives.
Mr Campbell said that foreign companies operating in Australia must comply with Australian workplace laws, including minimum pay rates.
It is alleged the Chinese workers arrived in Adelaide on class 456 visas, which are designed for short-stay business visits of up to three months for specialised, non-ongoing work. These were later cancelled by DIAC.
Mr Campbell said Chinese SANAN reimbursed its workers when they returned to China in March, with an "overseas travel allowance" which satisfied the alleged underpayment of the minimum wage.
Some of the workers subsequently returned on 457 visas which allowed supervised work.
The Chinese workers were believed to have been put up in dormitory-style accommodation in the Adelaide Hills during their stays. The accommodation had its own kitchen and all meals were cooked by a China SANAN employee, including lunch, which was delivered to Tonsley Park daily.
Accommodation and all meals were paid for by the company.
An Immigration Department spokesman yesterday said following discussions with the workers, most of their 456 visas were cancelled and the "more appropriate" 457 visa issued to eligible workers.
"This is not unusual once the department becomes aware that the work being conducted does not fit the requirements of the 456 visa," the spokesman said.
State Industrial Relations Minister Paul Holloway yesterday said that the pay and conditions of the SANAN employees were covered by federal minimum wage provisions.
The highest-ever penalty handed out for underpaying employees from a non-English speaking background was against an Adelaide cleaning company earlier this year. Saya Pty Ltd underpaid two vulnerable workers less than $4000.
My news:
The Fair Work Ombudsman started its investigation against a Chinese-registered China SANAN Engineering Construction Corporation after receiving information from the Department of Immigration and Citizenship. Report from Fair Work Ombudsman reveals that Chinese labourers, who were employed by the company to destroy the heavy machinery at the former Mitsubishi car plant, were paid with wages of $1.90 per hour for the strenuous work. The wages paid are lower than the Australia federal minimum wages 14.30 per hour. According to the Federal Court documents, the labourers worked 7.6 hours per day and 21.75 days per month while entitled to receive wages not less than the federal minimum wages. The Fair Work Ombudsman is committed to enforce the federal laws against the overseas worker and will take action against company that exploit their workers. Therefore SANAN will be charged through federal court action for breaking two breaches of workplace relations laws.
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