Landmark fine highlights IR threat

: MELBOURNE: A historic win against a Victorian clothing company has underlined the vulnerability of outworkers amid changes to the industrial relations system, according to the union.
In a landmark ruling the Textile Clothing and Footwear Union of Australia (TCFUA)?s Victorian Branch has been awarded $110,550 against clothing manufacturer Southern Cross Clothing ? which produced clothing for childrenswear label Designer Kidz -- after the company was found guilty of breaching 14 terms of the outworker provisions of the Clothing Trades Award 1999 during the period from December 2002 to September 2004.
The record fine ? the second highest of its kind -- was more than five times higher than the previous record penalty of $20,000 imposed against clothing company Lotus Cove in 2004.
?This case proves that companies cannot continue to blatantly disregard the requirements of the Industry Award?, said TCFUA state secretary Michele O?Neil.
The decision came in the wake of Federal Government?s changes to the Industrial Relations system -- making it easier for companies to avoid Award provisions -- and ahead of further changes that would allow companies to avoid paying minimum rates of pay and entitlements by classing outworkers as independent contractors.
Outworker protection campaign Fairwear was calling on the Federal Government to exempt outworkers ? who produce up to 90 per cent of clothing manufactured in Australia -- from the independent contractors legislation, confirmed Fairwear representative, Daisy Gardener.
?The Federal outwork provisions provide a policing mechanism for keeping these companies in check. The Textile Clothing Footwear union is the only body that is currently enforcing these provisions and ensuring companies cannot flaunt their basic responsibilities. We need these protections to be strengthened, not weakened?, she said.
?It is vital to have solid laws in place protecting outworkers. If the Federal outworker provisions are undermined by any further pieces of industrial relations legislation, such as the Independent Contractors legislation, it will mean free-reign for companies exploiting our most vulnerable workers,? she said.
The Southern Cross fine came hard upon a number of writs issued during the L?Oreal Melbourne Fashion Festival last month to 25 manufacturers for breaches of Award clauses designed to protect outworkers. [See Ragtrader March 10 p.1]