December 23rd 2024.
A children's clothing store in NSW has recently been fined over $5 million for taking advantage of migrant workers. The store, known as Blue Sky Kids Land, was found to have underpaid four Chinese migrant workers a total of $131,920. These underpayments ranged from $14,744 to $45,140 for each worker's individual wages.
It was discovered that these employees, who had limited English proficiency, were not receiving the minimum wage, casual loading, and penalty rates between October 2015 and June 2018. In addition, they were not receiving any super payments during this time. To make matters worse, two of the workers were not paid their overtime rates and one did not receive their annual leave when their employment ended.
Anna Booth, the Fair Work Ombudsman, expressed her disappointment in this behavior, stating that exploiting vulnerable migrant workers is unacceptable in Australia. She also noted that these workers may be at a disadvantage due to their lack of knowledge about their rights or fear of speaking up.
During the court proceedings, one of the workers shared that she and her husband had struggled to pay their mortgage and had even put off starting a family due to their low pay. Blue Sky Kids Land had stores in both NSW and Canberra, making this a widespread issue.
The investigation also revealed that the company's director, Guo Dong Gu, had obstructed their efforts by closing one of their stores in Canberra to prevent inspectors from conducting a site visit. Justice Anna Katzmann found that all of the violations committed by Gu and his fellow director, Fei Rong Yang, were intentional and serious.
In fact, evidence suggests that there may be several other companies owned by this duo that have also been reported for underpayment. This is a troubling discovery, as even while this case was being pursued, Gu and Yang were still underpaying their employees.
As a result of their actions, Blue Sky Kids Land was fined $4,299,000, while Gu was hit with a penalty of $760,000 and Yang with $43,000. In addition, their former company, Q Fay Trading Pty Ltd, which imported clothing for Blue Sky Kids Land, was also fined $44,100. It is worth noting that this same company had previously been cited for non-compliance in 2006.
This serves as a reminder that companies and individuals who exploit vulnerable workers will not be tolerated in Australia. The Fair Work Ombudsman will continue to take action against those who violate the rights of their employees and prevent them from receiving fair wages and benefits.
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