Home' Inclean : INCLEAN Jul-Aug 2017 Contents 6 INCLEAN July/August 2017
CMC Property Services has merged
with facility and infrastructure solutions
provider, ARA Group.
Forming part of ARA’s cleaning and
maintenance division, Paul McCann,
CMC CEO, said the business will now
have a combined revenue of close to $400
million, but the companies will continue
to operate independently.
McCann said the merger will allow
CMC to leverage ARA’s specialists
divisions including Fire, Mechanical,
Electrical, Security, Building and Products.
“The whole business is really excited
about the opportunities this is going to
create,” McCann said.
The merger also includes CMC
Property Services’ sister company, CMC
Indigenous Services, which is set to be
renamed to ARA Indigenous Services.
CMC Indigenous Services managing
director Michael O’Loughlin said the
merger will increase CMC’s capability
and service offering.
“We believe we have taken our business
model as far as we can and now is the
time to partner with a company such as
ARA to take us to the next stage.”
Spotless hit with
Spotless Group has been hit with a
second class action.
Law firm Slater and Gordon filed
proceedings in May on behalf of
shareholders who acquired an interest in
Spotless shares from 25 August 2015 to
the close of trade on 1 December 2015.
The statement of claims includes
allegations of contraventions of
the Corporations Act 2001 in relating
to misleading or deceptive conduct and
continuous disclosure obligations.
In February IMF Bentham and William
Roberts Lawyers launched a class
action against the cleaning, catering and
facilities management services group over
its 2015 financial results.
Spotless said it strongly denies any
allegations of wrongdoing and will
vigorously defend the proceeding.
United Voice study reveals wage theft
in Victorian schools
A new report released by United Voice
has uncovered what the union describes
as a “7-Eleven-style” wage theft scandal
in Victorian Government schools.
The report, Wage Theft in Victorian
Government Schools, which was
conducted across 142 schools throughout
the state, found 81 per cent of school
cleaners are being paid below award
wages. One cleaner was found to have
been paid just $2.63 per hour cash in
hand for her first week of work.
Thirty two per cent of the cleaners
surveyed are not being paid for all
of their work, and nearly one in five
workers are working at schools under
sham contracting arrangements,
employed on ABNs and denied such
basic entitlements as sick leave, annual
leave and superannuation. United Voice
estimates the total wage theft exceeds $10
million per year across the state’s 4000
Jess Walsh, Victorian Secretary
of United Voice, said the Victorian
department is trying to monitor more
than 700 contractors operating 1750
contracts.“In NSW there are just 11
school cleaning contracts across the state
that its government needs to monitor. The
system is broken. Reform cannot wait a
In response to the study, the Victorian
Department of Education said it takes “any
allegations of non-compliance seriously”.
Read more at www.incleanmag.com.au
FWO secures near-record penalties
against Sydney cleaning company
The Fair Work Ombudsman has secured
near-record penalties of $447,300 against
the operators of Sydney-based cleaning
company Grouped Property Services
(GPS), with the Federal Court finding the
company treated vulnerable employees as
“slaves” under a “calculated” scheme.
GPS has been penalised $370,000 and
ordered to back-pay $223,244 to 49
employees it exploited between 2011
Former owner-operator of the company
Rosario Pucci has been penalised a
further $74,300. His brother Enrico
Pucci, the company’s current owner and
sole director, has been penalised $3000
for his involvement.
Fair Work Ombudsman (FWO)
Natalie James said the case was one
of the agency’s most complex matter
that involved “dubious ‘labour hire’
arrangements, corporate structures and
sham contracting arrangements... in a
calculated attempt to avoid responsibility
for vulnerable workers’ entitlements”.
The court found GPS deliberately
exploited 51 workers, with most
engaged as cleaners. They were
individually underpaid amounts ranging
from $58 to $23,474.
GPS claimed the 51 workers were
employed by a purported labour-hire
company National Contractors, which
was registered at the GPS business address.
The FWO proved in court that GPS
was the true employer of the workers and
that National Contractors was a shell
company set up by GPS to avoid paying
employees the minimum award wages and
entitlements that applied to their positions.
Justice Anna Katzmann described
the case as “serious”, finding that the
contraventions were deliberate and part
of a “scheme”.
“It was the result of a calculated
attempt to avoid paying minimum
award rates and statutory entitlements,”
Katzmann said.“Some were treated by
Grouped Property Services as slaves.”
The FWO also secured court orders
requiring GPS to commission a professional
external audit of its payment practices and
rectify any underpayments discovered. The
company must also commission training on
workplace relations laws for its managers.
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