30 November 2017

Union warns labour-hire ‘abusers’ after court finding

FIRST Union, the union representing thousands of labour-hire workers in the logistics industry, is warning major retail chains and logistics companies that the days of exploiting triangular employment arrangements are over.

Triangular employment is where an employer, for example a labour-hire company, contracts the services of their employee to a host company, for example a logistics company. This kind of arrangement is common in industries across the country.

But in a decision released this week the Employment Court found it is likely that a host company may be deemed the employer where essentially “the work is for an indefinite duration, is expected to be provided and is expected to be performed by the individual” and “a significant degree of supervision, control and direction is exercised by the host [company]”.

FIRST Union spokesperson Jared Abbott welcomed the decision and said companies like Foodstuffs and The Warehouse will have to change their employment practices.

“This decision confirms the concerns we’ve been raising with employers for years about how they use and abuse the labour-hire system,” said Abbott.

“If you contract to a labour-hire company instead of hiring an employee you can avoid paying for things like holiday pay.”

FIRST Union has had a series of industrial disputes with employers to fight for “automatic conversion” rights for labour-hire workers where, after a set period of time, labour-hire workers are converted to employees.

“It’s great to see the Employment Court is now supporting what labour-hire workers and their unions have been fighting for for years” said Abbott.

“There are thousands of workers who will benefit from this decision.”

ENDS

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