Law weighs in to outworker debate

MELBOURNE: A high profile law firm has revealed plans to engage the Victorian government in the stand-off between the union and businesses over outworker protection.
Middletons Lawyers - which acted for fashion houses embroiled in the prosecution of 25 manufacturers for award breaches relating to outworker protection on March 2 - said it would write to Victorian Minister for Manufacturing and Export André Haermeyer requesting he "broker a resolution" between the Textile Clothing and Footwear Union of Australia (TCFUA) and businesses in the interests of sustaining onshore manufacturing.
A spokesperson for Minister Haermeyer told Ragtrader it would be premature to comment as the Minister had not yet received the letter, adding that it would probably be passed to the Victorian Minister for Industrial Relations Rob Hulls.
Middletons partner Tony Watson said the firm's decision came after fashion houses expressed fears the union's "heavy handed" approach was forcing manufacturing offshore.
"Five or six of my clients have come to me and asked me what can be done about this situation. While they're afraid to single-handedly take on the union, they would be prepared to lend their support to the letter."
The letter - to be circulated to all the firm's fashion clients, totalling around 40 across Victoria and New South Wales - would emphasise the importance of education, particularly as a number of the fashion houses involved in the March 2 prosecution claimed to be unaware of any wrongdoing, Watson said.
"The first these people heard of the breaches was either by being served with a [prosecution] writ or having their name included on a press release from the union.
"These fashion labels have found their businesses adversely affected by being associated with the prosecutions in the press."
Watson said confusion over their obligations, onerous compliance paperwork and punitive penalties for non-compliance with the award were proving too much for companies.
"Many of them are just throwing up their hands and saying 'this is too hard, I'll go offshore'."
Furthermore, many fashion houses simply did not understand the award's stipulation that they be responsible for the protection of all outworkers, including those subcontracted by their manufacturers, he argued.
"Technically the union may be in the right, but it would have to acknowledge that this aspect [of compliance] is hard for fashion houses and designers to get to grips with. For example, if I'm using a barrister it's not my responsibility to make sure he's paying all his staff properly. It's a pretty unusual concept.
"I don't think the education process is very well executed."
TCFUA Victoria state secretary Michele O'Neil said the union welcomed discussion on the matter.
"Frankly I'm surprised that Middletons has not contacted me directly."
Middletons could also have approached the Ethical Clothing Trades Council - formed under the aus"The issue of how best to educate industry on outworker protection has been a very hot to"I would have thought it would be sensible for Middletons to get on top of which organisations it should be talking to before approaching the government."
O'Neil said the importance of education was beyond dispute.
"There are two issues here. First, many workers are not aware of their rights but clearly on the other side there are many employers who are not aware of their obligations."

For more on this issue see page 12.