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NQ Powertrain faces court for allegedly deducting thousands from the wages of Pacific region visa-holders.
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FNQ labour hire company ‘overcharged workers for lodgings’
07 November 2022
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The FWO is taking legal action against a labour-hire company that allegedly underpaid 87 visa-holders working on farms in Far North Queensland by almost $50,000.
Most of the money – more than $42,000 – was deducted by NQ Powertrain from the workers’ wages to pay for accommodation at a rate above its actual cost, the FWO claims.
About a dozen of the workers were overcharged by $1,000 or more for lodgings at a boarding house in Mareeba or farmhouse in Tolga.
The FWO also alleges NQ Powertrain made unlawful wage deductions for transport costs as well as underpaying Sunday overtime rates, time-off-in-lieu entitlements and minimum-engagement pay due under the Horticulture Award 2010.
The FWO began investigating NQ Powertrain after being tipped off by the Queensland Labour Hire Licensing Compliance Unit and Commonwealth Government departments administering the Pacific Labour Scheme (PLS) or Seasonal Worker Program (SWP).
The workers came from PNG, Vanuatu and the Solomon Islands and were employed to pick, sort and pack fruit and vegetables, as well as general labouring and housekeeping tasks on the farms.
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It is alleged the workers were employed by NQ Powertrain for periods of between one month to about 16 months, and that the company supplied them on an on-hire basis to farms at locations near Cairns, including Innisfail, Tolga, Walkamin, Mareeba, Upper Daradgee and Mourilyan.
In total, 87 workers were underpaid $49,933 between December 2018 and May 2020, the FWO alleges, with individual underpayments ranging from $17 to $2,041. NQ Powertrain has rectified the amounts in full.
However, the FWO has declared it will make improving compliance in the agriculture sector and protecting vulnerable workers one of its top priorities,
and will seek penalties against NQ Powertrain Pty Ltd under the Fair Work Act.
The company faces fines of up to $63,000 per contravention.
“This sector engages many vulnerable workers, such as visa-holders, who may be unaware of their rights or unwilling to speak up,” Fair Work Ombudsman Sandra Parker said.
“Employers who fail to deliver all their employees’ entitlements – including due to unlawful deductions – will be found out and risk facing penalties.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance.”
A directions hearing is listed in the Federal Circuit and Family Court in Brisbane on 1 December 2022. The company ceased trading earlier this year.
The FWO said it made no allegations against the farm businesses where the visa-holders worked or against the boarding house or farmhouse where they resided.
The SWP and PLS were consolidated under the Pacific Australia Labour Mobility Scheme in April this year. The FWO has a dedicated webpage on the scheme which includes general information about workplace rights and entitlements, and links to relevant resources, including translated resources.
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