Australian companies using sub-contracting to underpay workers

A landmark report this week by the Australian Industrial Commission, FWA, has found that one of the major companies in the Australian poultry processing industry, the Baiada group, has set up its business model in order to increase profits by underpaying its workers. Baiada uses an operating model that transfers costs and risk associated with the engagement of labour to an extensive supply chain of contractors responsible for sourcing and providing labour. Many of the workers employed by these companies are in Australia on short term visas which put them in a more vulnerable position. These workers were found to have been underpaid, not provided with their legal entitlements, and made to work excessive hours. 

A landmark report this week by the Australian Industrial Commission, FWA, has found that one of the major companies in the Australian poultry processing industry, the Baiada group, has set up its business model in order to increase profits by underpaying its workers. Baiada uses an operating model that transfers costs and risk associated with the engagement of labour to an extensive supply chain of contractors responsible for sourcing and providing labour. Many of the workers employed by these companies are in Australia on short term visas which put them in a more vulnerable position. These workers were found to have been underpaid, not provided with their legal entitlements, and made to work excessive hours.