16/06/2008

News Item

Darrell Lea fined $120,000 over AWAs

Chocolate specialist Darrell Lea has been fined $120,000 for forcing 12 staff onto Australian Workplace Agreements (AWAs) and cutting their pay.

The fine was handed down in the Federal Magistrates Court in Melbourne on Friday following an investigation by the Workplace Ombudsman.

In an affidavit filed last August, the ombudsman said the chocolate company stood to gain more than $900,000 by cutting staff entitlements, including penalty rates.

The ombudsman said the company bullied 12 casual sales assistants, some as young as 16, into signing AWAs as part of a company strategy to abolish award conditions.

The AWAs stripped workers of penalty rates for weekends and public holidays, and staff were threatened with being taken off those shifts if they did not sign, the ombudsman said.

Darrell Lea pleaded guilty to 12 breaches under the Workplace Relations Act for using duress get employees to sign AWAs. The company said it had apologised to its staff and the $2445 it underpaid 12 employees, including young teenagers, had been repaid.

source: http://www.foodweek.com.au/main-features-page.aspx?articleType=ArticleView&articleId=2073