Justice for underpaid truckie

The Fair Work Ombudsman (FWO) has ordered a transport company based in Midvale, Perth, to give $20,000 in back pay to a former driver it underpaid for years.

In a media release, FWO says the company admitted it had not paid the driver for loading or unloading his truck for four years, because it had to cut its wages bill to remain competitive.

After the driver sought FWO assistance, it was discovered he had also been underpaid on his cents-per-kilometre rate and his living away from home allowance.

Once alerted of its breaches, the company co-operated with FWO inspectors and repaid the $20,000 it owed the driver.

Fair Work Ombudsman Natalie James warned employers they cannot undercut minimum wages and entitlements to gain a competitive edge.

"Businesses must pay their employees for all time worked, including any time spent preparing or packing up at the start and end of a shift," she said.

Ms James also said the Midvale case served as a timely reminder for companies outsourcing work to transport providers to treat low-cost tenders with caution – the quoted price shouldn't come at the expense of underpaid employees.

"All parties should undertake due diligence when outsourcing work, particularly to lowest-cost providers, to ensure lower costs are attributable to efficiencies in the business and not the potential underpayment of workers," she said.

The FWO says it's increasingly using Section 550 of the Fair Work Act to go up and down the supply chain to scrutinise sub-contracting arrangements.

Ms James said companies found to be profiting from underpaying workers faced a "very real risk to reputation and impact on their bottom line".

For more information on the Fair Work Ombudsman's services visit www.fairwork.gov.au or call 13 13 94. A free interpreter service is available on 13 14 50.