The Fair Work Ombudsman has launched a prosecution against embroidery and finishing firm Access Embroidery for allegedly underpaying a Chinese immigrant more than $27,000.
The 61-year-old embroiderer’s assistant was allegedly paid flat hourly rates ranging from $9 to $12, plus an additional $1 an hour for overtime.
Fair Work Ombudsman Nicholas Wilson claimed the worker, who speaks little English, was entitled to a standard rate of more than $13 an hour and up to $36 an hour for overtime, weekend and holiday work. Wilson said the employee’s vulnerability was a key factor in the decision to prosecute.
Fair Work inspectors discovered the alleged underpayment after investigating a complaint from the worker. Access Embroidery manager and co-owner Tao Hua has also been roped into proceedings. Documents lodged in the Federal Magistrates Court in Melbourne alleged Hua was centrally involved in underpaying the worker a total of $27,123 between May 2006 and March 2010.
While Access Embroidery rectified the alleged underpayment earlier this year, it is alleged the company was involved in several further breaches of workplace laws. Hua faces maximum penalties of $6,600 per breach and Access Embroidery $33,000 per breach.
The case comes less than a month after the Textile, Clothing and Footwear Union led a protest outside Melbourne luxury boutique Scanlan & Theodore. As first reported on www.ragtrader.com.au, the designer brand had been linked to the collapse of local knitwear manufacturer Blossom Road.
The company entered into liquidation owing 27 clothing workers more than half a million dollars in unpaid wages, annual and long service leave, as well as notice, redundancy and superannuation entitlements.
Scanlan & Theodore has declined to comment on its ties with the company, which counts the brand as its only major client.
Assia Benmedjdoub