TWU To Lift The Corporate Veil on Sham Contracting Arrangements
The Transport Workers Union is seeking to set a new benchmark in workers protection in an attempt to lift the corporate veil on those who attempt to dodge their obligations to contract carriers.
The TWU is seeking through an application to the NSW Industrial Relations Commission to amend the Courier and Taxi Truck Contract Determination, so that a new company is responsible for the liabilities incurred by any old entity that can be shown to be substantively the same business.
This comes on the back of Contract Courier Services Pty Ltd falling into liquidation and the formation of Courier National Services Pty Ltd, who have the same company director and principal place of business, and use the same equipment and same staff to provide the same services.
A 2007 ruling from the NSW Industrial Relations Commission found that Contract Courier Services owed contract carriers money and Mr James Taylor, a director of this company and President of the NSW Courier and Taxi Truck Association, through legal counsel committed to identify all underpayments to the drivers in light of the commissions ruling and pay their entitlements.
TWU Secretary Tony Sheldon: “These workers need cost recovery to maintain and operate a viable and safe business.
“No company should be wound up without paying what is owed to past and present drivers and we continue to fight for the rights of these couriers.
Barry Debus is a 35 year veteran of the courier industry and has been a victim of some of the worst employer practices in the transport industry.
“The problem is that drivers do not know their entitlements, but every employer knows exactly what they should pay.
“All of the drivers who are found to have been underpaid should be entitled to access what they are owed. All these drivers have earned this money and are entitled to it – just because a company can change its name doesn’t mean that it still shouldn’t have an obligation to do the right thing.”
Media Inquiries Josh McIntosh 0408 463 199.
20 March 2008
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