ATTACHMENT 2

3 February 2015

Mr J SS Pty LtdTARNEITVIC 3029 Postal & Telecommunications

Branch of Victoria Division of the CEPUPO Box 10 5 2

North MelbourneDear Mr S

Re: Failure to pay Award wages & Superannuation to employee

Victoria 3051

Ph : (03) 9600 9100Fax: (03) 9600 9133Web Site : www .cwuvic.asn.auEmail:office@vicpt.cepu.asn.au

I am writing to you regarding the failure of your company to comply with the relevant Award that applies to your employee at Torquay Delivery Centre- the Road Transport Distribution Award 2010- and your failure to comply with the terms of the Fair Work Act 2009.

I understand that she is paid $20 per hour and is not in receipt of Superannuation .The Fair Work Act requires that employees are provided with a contract of employment, an attendance book that records her hours of work and a pay-slip. Under the Award you have an obligation to pay $22.89 per hour to your employee which includes a 25% loading as you do not provide Annual Leave, Sick Leave, Public Holiday pay or Long Service Leave. Under the Superannuation Guarantee Act you have an obligation to pay 9.5% Superannuation into a Super Fund of her choice.

I invite you in good faith to enter into discussions about your workers' entitlements to Award wages& Superannuation under the Road Transport Distribution Award 2010.

I am formally placing this matter in dispute under Clause 10 of this Award, and invite you to meet to discuss this matter . I will be escalating this matter to the Fair Work Commission if I do not hear from you by close of business on 10 February, 2015.

Yours faithfully

Joan Doyle SecretaryCommunication Workers UnionPostal & Telecommunications Branch Victoria (0419 345 134)

28 January 2014

Terry O'Leary Country Manager Australia Post GPO Box 2020MELBOURNE VIC 3001

Dear Mr O'Leary

Postal & Telecommunications Branch of VictoriaDivision of the CEPUPO Box 1052North Melbourne Victoria 3051

Ph: (03) 9600 9100Fax: (03) 9600 9133Web Site: www.cwuvic.asn.auEmail:office@vicpt.cepu.asn.au

Re: Underpayments to T..... McD........... - Echuca

Since August 2013, the union has been trying to rectify the remuneration ofT..... McD....... who is an employee of H...... 0....... P.......... P/L a company which contracts to Australia Post. Mr McD....... is employed to deliver a contract round, and to back-fill on a corporate round at Echuca Delivery Centre.

I enclose an earlier letter sent to Ashley Morrow of the Contracts Centre about Mr McD's situation. Mr McD commenced his employment in July 2010, and at this stage he was employed by RJP Building Services P/L, a company for which A ..... J........was the sole Director. During his employment with this company he was underpaid and did not receive Superannuation benefits. RJP Building Services was put into liquidation on 7/ 12/ 12, but Mr McD was never informed of this until the union began agitating about his remuneration .The contract worked on by Mr McD was eventually re-assigned to another company owned by the same Director, A ........ J.........,"H.... O....P........ P/L" even though RJP Building Services had gone into liquidation owing $185,000.

H....... on Parcels P/L now pay the award rate for Mr McD's contract round - $22.22 per hour, but he is yet to be paid Superannuation which is mandated by the Superannuation Guarantee. He continues to be underpaid wages and Superannuation while he is providing labour to back-fill the corporate injured worker at Echuca DC.

Clause 7.8.1(a) of the Australia Post Enterprise Agreement 2013 states that: ''Australia Post wi'll ensure that the overall pay and conditions of remuneration paid to agency personnel will not be less than the overall pay and conditions of remunerationprovided to comparable Australia Post employees by the Agreement and relevant Australia Post awards.”

It is this matter that I am formally placing in dispute under Clause 42 of the Australia PostEnterprise Agreement 2013.

Please contact me if you wish to discuss this matter further.

Yours faithfully

Joan Doyle SecretaryCommunication Workers UnionPostal & Telecommunications Branch Victoria

(Mobile: 0419 345 134)

Cc Dan Dwyer & Martin O'Nea - Communications Division CEPU A J - H 0 P P/L DirectorN R -........Accountants

9 August 2013

Ashley Morrow Contracts Manager Australia PostGPO Box 1777

MELBOURNE VIC 3001

Dear Mr Morrow

Re: Head Contractors & their employees I 'sub-contractors' conditions- Echuca

Postal & Telecommunications Branch of VictoriaDivision of the CEPU

PO B o x 1052North Melbourne V icto r ia 3051

Ph: {03) 9600 9100Fax: (03) 9600 9133Web Site: www.cwuv ic.asn.auEmail:office@vicpt.cepu.asn.au

I refer to our meeting on 13 December 2012, at which Australia Post asked for further information as tonon-compliance by contractors of their obligations to employees .

I enclose a letter to Ms AJ relation to one of our members. The letter is self explanatory. It outlines the employment of T McD for a period in excess of 3 years during which he has been underpaid, and has been deprived of Superannuation benefits. RJP Building Services was put into liquidation on 7/12/12. Mr McD was never informed of this, and continued working and just recently has been told he will be paid by a different company - Hooked on Parcels P/L.

I would like to know why this contract has been assigned to the same Director of a company that has gone into liquidation owing $185,000. I would like to know when the contract was assigned and who in Australia Post approved this . I have included the company searches for your convenience.

This is the third company that I know of in this region of Victoria that has gone into liquidation owing their postal employees' wages and Superannuation .

I have raised Mr McD's future and this issue with Paul Rodda, the Victorian Country Manager, and I look forward to Mr McD having a working future that includes being paid the award wage and the Superannuation Guarantee mandated by law.

Yours faithfully

Joan Doyle

SecretaryCommunication Workers UnionPostal and Telecommunications Branch Victoria0419 345134

CONTRACTORS

New information from work place visit to Belgrave Delivery Centre 6 October 2014.

A.... E .... P/LSteve worked for them a year ago- $150 a day regardless of work-load and hours worked but quit and now works for another contractor.

Ricky. He is on Menzies' Creek I Selby round 2240 (Old round 7)(on 457 spouse visa)He is also paid $150 a day regardless of the hours worked . He says sometimes it equates to $15 an hour. He doesn't get paid super. While I was talking to him in the lunch-room, his supervisor (R....., I think- he is G....... S .......'s right-hand man) rang to tell him off for talking to me.

I also interviewed Howard & Angela at whose house Ricky is boarding. (Howard and Angela work at Aussie Post too. His wife came out on a 457 visa to work at a restaurant owned by Ricky's brother in Springvale but Ricky had a fight with his brother so now he boards with Howard & Angela while his wife stays at the brother's place.They told me he gets $5 a day for petrol for the postie bike provided for him.Ricky was worried about who would pay for him if he got hurt. {It is dangerous motor-bike riding territory) At first his boss said Ricky would have to pay and then they said they would pay half the costs when he pressed the issue .

A .....E..... P/LDirector- G..... S.......

Their contracts with Aussie Post are:Roadside Delivery (country) 2 in Terang, Sale, Somerton, Nhill, Toora, Heyfield, Moriac, Apollo Bay, Meredith, Bacchus Marsh,Parcels- WallanDepot Bags- Belgrave, Ferntree Gully, Laverton, Research, Greensborough, Hoppers Crossing, Footscray WestStreet Mail Delivery- Selby I Menzies Creek & Ramsey

(Note earlier advertisement for overseas students promising work if study in Australia)

23 July 2015

Philip JonesPartnerMaddocks Lawyers 140 Williams StreetMELBOURNE 3000

Philip.Jones@maddocks.com.au

Dear Mr Jones

Re: Morning Star Trends Pty Ltd trading as Zion Group and Sahil Verma

I refer to your letter of 13 July 2015. We act for Mr Verma in connection with this matter. Mr

Verma is an employee at common law and the pay and conditions that apply to him arethose under the Road Transport Distribution Award 2010. He is not a sub-contractor. Whenall the circumstances are examined in relation to his employment it can be seen that there is not a case for the claim that he is a sub-contractor.

There is no sub-contract agreement and this is a specific requirement of Australia Post if the head contractor wishes to sub-contract out his work. Mr Verma provided only his labour. Mr Perera provided all necessary equipment- the vehicle, insurances, scanner and other tools of trade.

Mr Perera directed the way in which Mr Verma performed his work. It was not possible for Mr Verma to get other people to sub-contract or employ others to do his work, partly because they would require security passes or clearances from Australia Post which are provided at the discretion of Australia Post and even then only on Mr Perera's request . Mr Perera is responsible to Australia Post in the event that his employees do not achieve the required performance standards.

Mr Verma applied for employment of 4 X hours per day as he is a student with workrestrictions.

The facts of the matter is that Mr Perera was short-staffed and insisted on Mr Verma delivering two postie rounds which is a physical impossibility. When Mr Verma told Mr Perera that he could not deliver all the mail in the same day, Mr Perera instructed Mr Verma to store the mail. Please find enclosed an email exchange that verifies this claim. Mr Verma

became concerned about the delayed mail and after seeking advice from another head contractor informed the Narre Warren Delivery Centre Manager . I personally have confirmed that this was the case with the Delivery Manager.

We do not accept that $1,525 is payment in full. Mr Verma was not paid minimum award rates of pay. He was not paid Superannuation. The Invoice shown was initially generated by Mr Perera. An employee does not have to pay monies owed by a head contractor to Australia Post. Mr Perera needs to pay Mr Verma all outstanding wages ($2,171) and Superannuation ($382.75) without further delay.

Yours faithfully

Joan Doyle SecretaryCommunication Workers UnionPostal & Telecommunications Branch Victoria

P.O. Box 14BRUNSWICK WEST 3055(0419 345 134)

CASE-STUDIESWORKING AS A CONTRACTOR

OR AN EMPLOYEE OF A CONTRACTOR FOR AUSTRALIA POST

Australia Post has contracted out a range of jobs. Some - the Road Side Delivery Contractors have been operating for decades, the Parcel Contractors for about 12 years and the Urban Fringe Posties for about a decade. Below are some examples of the pay & conditions for the workers in these precarious jobs.

POSTIE CONTRACTORSAustralia Post has contracted out dozens of delivery rounds on the urban fringe. These postieswork out of Australia Post Delivery Centres such as Hoppers Crossing, Epping, Bundoora, Pakenham, Mornington, Rosebud, Hastings, Belgrave, Cranbourne, Warragul, Healesville, Melton, Sunbury. In some places, this involves the 'contractors' performing primary sorting as well as sequencing and delivery.

There is a mixture of arrangements involved. Sometimes there is one contractor per contract, itis quite common to have a head contractor who employs a few 'posties' and there is at leastone head contractor who employ 20 or more posties.

CASE-STUDY 1. ' A'

1. A is employed by S- the head-contractor who works at Epping DC himself.

2. A is a postie delivering South Morang mail by motor-bike. He also does the primary sorting for the whole of South Morang. He is on Round 2199.

3. He is paid $17 an hour cash in hand.

4. It would seem he is not covered for worker's compensation.

5. He has been working for approximately 8 months, having started on or about 19December 2011.

6. He works 9 hours per day. He starts at 2am.

7. He is a permanent casual; he does not get paid annual leave, personal leave or public holidays and is not accruing Long Service Leave.

8. He is not paid Superannuation.

9. He is married with a child and his wife does not work outside their home.

10. A is working on an International Drivers License.

11. The National Employment Standards (NES) as set out in the Fair Work Act 2009 (FWA) include the Provision of a Fair Work Information Statement which employers must provide to all new employees. This was not provided to A.

12. He does not have an attendance book to sign.

13. The employer does not provide pay-slips. Under the Fair Work Act employers must issuepay-slips to each employee within 1working day of their pay day.

14. A has an ABN .

15. A is permanent Australian resident.

16. When he asked for a rain-coat, S gave him the coat of another 'subbie' who works for Bobby Singh, and that 'subbie' thought that A had stolen it, so there was ill-feeling until they worked out what had occurred.

CASE-STUDY NO: 1UNDERPAYMENTS- UNDER ROAD TRANSPORT AND DISTRIBUTION WORKERS AWARD

In eight short months, 'A' has been paid $12,871 less than the Minimum Wage and foregone $2,888 in Superannuation payments under this award. He has been paid $14,147 less than if he had been employed directly by Australia Post. He would also have received $2,786 in Superannuation under Australia Post'scurrent superannuation provision.

CALCULATIONS19 December 2011 to 30 June 2012The Award rate under the Road Transport and Distribution Workers Award 2010 at thistime is $21.05. There are 130 working days during this period. A is paid $17 an hour. He is working 9 hours per day . He does not keep a record of his ad hoc over-time so this claim cannot be made at this time.

He has been underpaid : He is being paid $4.05 per hour less than the award rate for his first 7.6 hours. There is a 38 hour week. His last 1.04 hours must be paid at 150% as they should be paid at over-time rates.

19 December 2011 to 30 June 2012Early start penalty

3.5 hours x $14.58 (over-time rate of $31.58 minus $17 he has been paid) x 130 days = $6,633.90Underpayment of base rate

$4.05 per hour ($21.05 casual award rate minus $17 paid) x 4.1 hours x 130 days= $2,158.65Over-time payments

1.4 hours x $14.58 (over-time rate of $3 1.58 minus $17) x 130 days= $2,653.56

1July 2012 to 20 July 2012The Award hourly rate for casuals increased to $21.66. A was now being underpaid by $4.66 per hour. Thereare 15 working days during this period.

EARLY START PENALTY3.5 hours x $15.49 (over-time rate of $32.49 minus $17) x 15 days = $813.23

Underpayment of base rate$4.66 x 4.1 hours x 15 days= $286.59

Over-time payments1.4 hours x $15.49 (over-time rate of $32.49 minus $17) x 15 days= $325.29

WAGES SUB-TOTAL: $12,871.22

SUPERANNUATION PAYMENTS OWEDTo be paid @ 9% of what A should have been paid:19 DECEMBER 2011 TO 30 JUNE 2012

Wages Paid Underpayment Ordinary Hours Only

Total Superannuation Owed

$8,793 $28,683 $2,582

1JULY 2012 TO 20 JULY 2012$2,295 $1,100

SUPERANNUATION SUB-TOTAL:$3,395 $306

$2,888

TOTAL : $15,759

=

WHAT 'A' WOULD HAVE BEEN PAID IF HE HAD WORKED FOR AUSTRALIA POST UNDER THE AUSTRALIA POST FAIR WORK AGREEMENT 2010For 3 month Probationary periodHOURLY RATE: $18.78 plus 15% penalty ($2.82) for starting before 6.30am, plus 22.5% loading for casual

($4.84) = $26.44 x 7.35 hours = $194.33 per day for ordinary hours plus 1.65 hours @150% over time rates ($28.17) = $46.48

DAILY RATE: $240.81 instead of the $153 he has been paidHe would have been paid $87.81 more x 60 days (19 March 2012)

$5,268.60From 20 March 2012 to 20 July 2012HOURLY RATE: $20.07 plus $3.01 penalty rate plus $5.19 casual 22 112% loading= $28.27 x 7.35 hours perday= $207.78 for ordinary hours plus 1.65 hours @150% overtime rates ($30.11)

= $49.67DAILY RATE: $257.45 instead of $153 he has been paidHe would have been paid $104.45 more x 85 days

= $8,878.53

WAGES SUB-TOTAL: $14,147

SUPERANNUATION @9.5%Wages Paid Underpayment Total

Ordinary hours onlySuperannuation owed

Probationary period$9,180 $2,480 $11,660From 20 March 2012 to 20 July 2012$13,005 $4,656 $17,661SUPERANNUATION SUB-TOTAL: $2,786

$1,108

$1,678

TOTAL: $16,933

SUMMARY

Summary, in the short time (19 Dec 2011- 20 July) A has been employed he has been paid$12,871 less than the minimum rates Road Transport and Distribution Workers Award, and$14,147 less than the industry rate (Australia Post Fair Work Agreement 2010).

He has not been covered for Workers Compensation nor received Superannuation . There are also tax issues. We do not believe that his driving license would be valid.

CASE-STUDY 2. 'R'A head contractor 'Baljit 'Bobby' Singh employs at least 20 postie 'subbies'. His company is called Oz Trade and Services P/L. (ACN 139863835 ABN 20139863835). He is associated with a Training College- St Stephens Institute in High Street, Reservoir and with a travel company. He employs Rat Epping DC, at least 9 posties at Hoppers Crossing DC and at least 2 at Bundoora DC. He also employs parcel drivers (Airport West, Whittlesea & Preston DCs) and providesfixed-term agency employees (approximately 15) to Australia Post to work in Delivery. He has brought a number of people out from Northern India on student visas.

The union has taken detailed histories of 4 of his employees. All have common issues:

The National Employment Standards (NES) as set out in the Fair Work Act 2009 (FWA) include the Provision of a Fair Work Information Statement which employers must provide to all new employees. This has not been provided to Mr Singh's employees. He does not provide pay slips. Under the Fair Work Act employers must issue pay-slips to each employee within 1 working day of their pay day. There is no provision of an attendance book for employees to register their hours of work.

He requires his employees to provide an ABN and to register for GST and to pay costs involved in the performance of their work.

It is our understanding that he pays a range of hourly payments from $17.50 to $23 (thishigher rate is only for early start, sorting work), all of which would seem to be under-payments. He is not paying penalties for early starts and for over-time .His employees are not covered by Worker's Compensation and do not receive Superannuation.

1. R is a postie working out of Epping DC delivering South Morang mail by motor-bike. R is paid $17.50 an hour. He has been working for just over 3 years, having started mid- July 2009. He is a permanent casual; he does not get paid annual leave, personal leave or public holidays and is not accruing Long Service Leave. He is not paid Superannuation.

2. He has no written contract of employment. The employer does not provide pay-slips.

3. R has an ABN, he pays GST & income tax. R is paid fortnightly into his bank account.

4. R has a valid work permit but does not have permanent residency.

5. R started off working 20 hours per week doing round 2198 inside and 3694 outside. He isnow full-time, and has been since 1May 2011.

6. He starts at 4am on Monday and 5 am on the other days of the week.

7. He was working 10 hours a day. As of 1 January 2012 he only delivers one round 3694. He has 1300 points. In September 2011 Australia Post reviewed his round and cut it to 2 hours 40 minutes inside and 5 hours outside. He often takes far longer. He has been employed and paid for 8 hours per day.

8. Bobby Singh provides the bike, but R pays for the fuel. He is not supplied with a proper uniform or adequate PPE. His work frame is not properly maintained by either Bobby Singh or Australia Post so that the sorting sequence is not in order and that slows him down.

UNDER- PAYMENTSIn just over 3 years 'R' has been paid over $16,000 less than the Minimum Wage, and forgone at least $8,000 Superannuation.R should not be registered for GST nor pay it as he is an employee under the law. If AustraliaPost has paid this to his employer then Bobby Singh should be paying GST on his contract. R should be reimbursed by his boss for all his expenditure paid in the performance of his work.

CALCULATIONS13 July 2009 to 30 June 2010(Note not certain of exact start date)Award rate for casuals under the Road Transport and Distribution Workers Award 2010 was $19.50 ($15.60 plus25%) at this time. There are 252 days in this period.R was being underpaid by $2 an hour. He was nominally employed for 20 hours per week. R has not kept recordsof his ad hoc additional hours and over-time.

For this period R has been underpaid $2 per hour x 4 hours x 252 days = $2,016

1July 2010 to 1May 2011The Award rate increased to $20.36 on 1July 2010. R continued to receive $17.50.

This period has 233 working days . For this period R has been underpaid $2.86 per hour x 4 hours x 233 days =$2,665.52

2 May 2011 to 30 June 2011R was made full-time from 1May 2011,and was told to work a 40 hour per week. This means that 0.4 hours per day was being worked as over-time as there is a 38 hour week. This period has 43 working days. The award rate was $2.86 an hour more than R was being paid.

He is owed $2.86 per hour x 7.6 hours x 43 days= $934.65 .He is also owed 0.4 hours overtime per day (0.4hrs x $30.54 per hour) i.e $12.22 x 43 days = $525.46

1July 2011 to 30 June 2012The Award rate was increased to $21.05 an hour. He continued to receive $17.50 per hour. R continued to beengaged for 40 hours per week during this time. There were 251 working days during this period. He is owed $3.55 per hour x 7.06 hours x 251 days = $6,290.81He is also owed 0.4 hours overtime per day (0.4hrs x $3 1.58 per hour) i.e $12.63 x 251 days = $3,170.63

1July 2012 to 20 July 2012The Award rate was increased to $21.66 an hour. R continued to be paid $17.50 an hour and to be engaged for 40 hours per week during this time. There are 15 working days during this period. He is owed: $4.16 per hour x 7.06 hours x 15 days= $440.54He is also owed 0.4 hours overtime per day (0.4hrs x $32.49per hour) i.e $13 x 15 days= $195 (R could have a claim for a 50% loading for his work before 5.30am but I do not have evidenceabout when this change of shift occurred and whether he was asked to start at this time. Certainly allhours before 4.30am should attract a 50% penalty. This claim has not been dealt with at this stage.)WAGES SUB-TOTAL: $16,238.61

SUPERANNUATIONTo be paid @ 9% of what R should have been paid

Wages Paid UnderpaymentOrdinary hours only

Total Superannuation owed

13 July 2009 to 30 June 2010$17,640 $2,016

1July 2010 to 1May 2011$16,3 10 $2666

2 May 2011 to 30 June 2011$6,020 $935

1July 2011 to 30 June 2012$35,140 $6,291

'$19,656 $1,769

$18,976 $1,708

$6,955 $626

$41,431 $3,729

1July 2012 to 20 July 2012$2,100 $441 $2,541 $229

SUPERANNUATION SUB-TOTAL: $8,061 COMBINED TOTAL: $24,300

PARCEL CONTRACTORSIn 2000, Australia Post contracted out most of their parcel deliveries to individual households & small business. There are now over 1,000 parcel contractors in Victoria. When 'Parcels' were first contracted out, the average price paid to the driver per parcel was about $1.50 per parcel, this now has been reduced to $1.10. Some drivers get $1.35, and some newer drivers are on 95 cents per parcel, and even 80 cents per parcels when the contractor provides the van. Some contractors who are in difficult areas and who have business acumen can get rates of $1.75 or more but these are exceptions to the rule.

There are a variety of arrangements - some sole operators, some who employ 2 or 3 drivers and some large operators who employ 20- 100 drivers. Some drivers provide their own vans while vehicles are provided for others by the head contractor.

It is common for Australia Post to be tardy with paying for increases in volumes or points delivered to.In growth areas, Australia Post get the advantage of the fact that the tender document and the volume count is done months before it is tendered, then the new contractor has to work out the mechanism by which you get an increase in price if the number of households serviced has grown, then they have to get a response from the Contract Centre.

Similarly, Australia Post will pressure existing contractors adjacent to newly developed estates or LPOs that have gone out of business to take on that adjacent work, they will then have the contractor doing the work without any pay while they take months to negotiate a price. They will also pressure them to take over contracts that have fallen over, giving them the same or consigned price which had proved to be inadequate. Clause 9.3 of the Standard Contract provides that they cannot get an increase unless their delivery points increase by 20 in respect to Street Mail Delivery and 10 in respect to Roadside Delivery.

A contractor can choose between obtaining a percentage profit for the life of the contract or receiving CPI increases. These CPI increases are not automatic and are only backdated to the time of request.

Australia Post has clauses (8 & 9) that allow them to adjust prices downwards if they come up with an initiative that leads to cost savings . Australia Post have come up with such initiatives the most infamous is the consignment price -the driver get parcels labelled, for example, 1of20. These may be wine, paper, cartons of books and fill their vans up and need to be carried up flights of stairs, etc. The drivers get, for example, $1.10 for the first one and 70 cents for every other one.

Increasingly contractors are expected to deliver parcels in excess of 32 kgs.

The union has discovered all sorts of examples of poor pay and conditions. There was a whole group of drivers at Bendigo who were being employed on trainee wages which given that they held and used a driver's license in their work was just a bizarre way of reducing their pay rate.A very large proportion of drivers are working without Super and Worker 's Compensation. Someare paid cash-in-hand. Some are made to pay the expenses involved in performing their dutiesi.e fuel, maintenance.

CASE-STUDY 3 'B'DEE VEE DRIVERS AT AIRPORT WEST DELIVERY CENTRE

Dee Vee P/L employs 6 drivers and an ad hoc casual. I have provided 'B' as a case-study butall of his work-mates have fairly similar stories.

1. EMPLOYED BY DEE VEE P/L ACN 152 688 983. Debra Baguley, 45 Streldon Avenue, Strathmore (Partner: Jerry Katz ex-Delivery Manager)

2. B is a driver who sorts parcels at Airport West Delivery Centre at 11 Larkin Court, Essendon Fields and then delivers these parcels to households and businesses in Maribyrnong (postcode 3032) by van.

3. B is paid $1.10 a parcel. He delivers an average of 162 parcels per day.

4. He was first employed on 5 March 2012.

5. He starts at 5 am and works a 45 hour week and therefore should be paid 7 hours over time if a 38 hour week is applied, and 8 1f4 hours over-time if a 36 3f4 hour week (Australia Post industry standard) is applied.

6. He is a permanent casual; he does not get paid annual leave, personal leave or publicholidays and is not accruing Long Service Leave.

7. He is not paid Superannuation despite the requirement by the ATO that even 'dependent contractors' are covered for the Superannuation Guarantee .

8. The National Employment Standards (NES) as set out in the Fair Work Act 2009 (FWA) include the Provision of a Fair Work Information Statement which employers must provide to all new employees. This was not provided to B. He has not written document in relation to the nature of his employment.

9. B is paid monthly. He is usually paid 5 weeks in arrears. He gets paid an average of$930 per week.

10. He has an ABN . He pays GST. He owns his own van. He has a loan of $16,000 for the van which has repayments of $425 per month. He pays for the fuel approximately $100 per week. His Commercial Motor Vehicle Insurance and Personal Accident Insurance cost approximately $2,000 a year. He was told that he needed to have this Personal Accident Insurance as a condition of obtaining employment. (The union believes that in the event of a workplace accident the insurer may not pay up as he should have an entitlement under WorkCover.) He estimates his expenses as $250 per week. His employer pays for Public Liability and Marine Cargo Insurance, and hires and pays for the scanner he uses from Australia Post. His employer has no Worker's Compensation insurance.

UNDER- PAYMENTS

'B' should not be registered for GST nor pay it. Australia Post has paid this to his employer and she should be paying GST on her contract. B should be reimbursed by his employer for all his expenditure paid in the performance of his work. He should be paid Superannuation and be covered for Workers Compensation .

As at 5 March 2012, the award rate for casuals under the Road Transport and Distribution Workers Award 2010 was $21.05.From 1July 2012, the Award rate for casuals under the Road Transport and Distribution Workers Award 2010 became $21.66

WAGES THAT SHOULD BE PAID FOR A TYPICAL WEEK NOWHe should currently be getting a daily wage of:

0.5 hour x $32.49 for early start before 5.30am = $16.257.1 hours x $21.66 = $153.79plus 1.4 hrs x $32.49 over-time rate = $45.49

DAILY WAGE = $215.53WEEKLY WAGE= 1,077.65 ie $147.65 below what he should be under the RT&DWA.He is also entitled to 9% Superannuation on ordinary hours which is worth $15.30 a day or$76.50 a week.

He is now getting $930 through the current arrangement but he pays all his costs out of this.He is paid approximately 5 weeks in arrears . Since he started he has been paid $15,801 (or$929.47 per week for 17 weeks) for his labour. (He has not been paid for the month of July as yet.) His expenses are approximately $250 per week. B is being paid $680 per week for a 45 hour week once his expenses are deducted. He is being paid below the Minimum wage.

WAGES under ROAD TRANSPORT AND DISTRIBUTION WORKERS AWARDFrom 5 March 2012 to 30 June 2012The award rate was $21.05. There are 78 working days in this period. B should have been paid:

For Early Start0.5 hour x $31.58 (overtime rate) per hour x 78 days= $1,231.62

Normal Hours7.1 hours x $21.05 per hour x 78 days= $11,657.49

Daily Overtime1.4 hours x $31.58 (overtime rate) x 78 days= $3,448.54

SUB-TOTAL: $16,337.65

This is $536.65 more than what he has been paid. But he should be eligible for reimbursement of expensesfrom his employers {approximately $3,900) as well as 9% superannuation {$1,160).

From 1July 2012- 20 July 2012From 1July 2012, the Award rate became $21.66. There are 15 working days in this period. B should have beenpaid.For Early Start

0.5 hour x $ 32.49 (overtime rate) per hour x 15 days= $243.75Normal Hours

7.1 hours x $21.66 per hour x 15 days= $2,306.851.4 hours x $32.49 (overtime rate) x 15 days= $682.35

SUB-TOTAL: $3,232.95

Bill has yet to be paid for this period. Based on the number of parcels delivered he is expecting to be paid $2,292.40. He would receive an additional $940.55 under the RT&DWA plus

$229.55 superannuation, and not be responsible for costs (approximately $750)expended in the course of his employment.

SUPERANNUATION to be paid @ 9°/o of what B should have been paid for his normalhoursFrom 5 March 2012 to June 2012

9% of $12,889.11 = $1,160.02From 1July 2012 - 20 July 2012

9% of $2,550.60 = $229.55SUPERANNUATION SUB-TOTAL: $1,389.57

WHAT 'B' WOULD HAVE BEEN PAID IF HE HAD WORKED FOR AUSTRALIA POSTWAGES under INDUSTRY RATE (AUSTRALIA POST FAIR WORK AGREEMENT 2010)

From 5 March 2012 to 20 July 2012The award rate was $21.02 plus 15% penalty ($3 .15) as he starts work before 6.30am. 22.5% casual loading =$29.61. There are 93 working days in this period.B should have been paid:Normal Hours

7.35 hours x $29.61 x 93 working days = $20,239.92Daily Overtime

1.65 hours x $31.53 (50% overtime rate) x 93 days = $4,838.28SUB-TOTAL: $25,078.20 or $269.66 per day.

SUPERANNUATION to be paid @ 9% of what B should have been paid for his normal hoursFrom 5 March 2012 to 20 July 2012

9% of $25,078.20 = $2,257.04

The gap under the industry rate widens to $6,355 in wages and $2,257 in Superannuation, plusreimbursement of costs.

On 24 August, 2012 Bill was terminated 'effective immediately' because according to the manager he had brought the union in and he hadn't given in when they had given him several chances to forgo his rights to Superannuation.

ROADSIDE DELIVERY SERVICE CONTRACTORSThese contractors deliver letters and parcels in the country areas. They often cover large distances. Their contract prices are low, and they often end up not being fully reimbursed for the cost of their vehicles and fuel. Because they realize the service they provide is essential to their local community they put up with poor conditions for long periods of time without complaint.

CASE-STUDY 4 'C'This is a case-study of a Roadside Delivery Service Contractor and illustrates how difficult it isfor the Contractors to negotiate with Australia Post.

'C' has a company Diernek Enterprises P/L that has a contract to deliver a Roadside Delivery Service for Terang-Cudgee MS 802573. She has an ABN & an ACN. In February 2009, she contracted to perform this service for $61,740.22 cents or $67,914.24 when GST was included. It was estimated that it would take her 36.25 hours per week and the wage rate in the tender was $19.50 an hour with no relief provision but an additional amount for Superannuation & Worker's Compensation.The work involves travelling 294.7 kms per day or 73,675 kms per annum.

In March 2011, C was asked to cover some extra work as the result of the Garvoc LPO closure. C did not agree that the price offered was fair . A review of the actual work and the time taken was conducted between 25 July and 5 August 2011. This was discounted for breaks that she did not take.

She was threatened that if she did not do the extra work that her original contract would betaken off her by an Australia Post Area Manager.

She contacted the union and the union became her agent and put the matter into dispute. The union put in a claim using the real time taken and a wage rate at the Minimum Wage under the Road Transport and Distribution Workers Award. We also reviewed her past payments and worked out whether CPI and payments for past Variations had been made.

It is extraordinarily difficult to understand Australia Post's payment receipts as they lack details. A letter of dispute was lodged, and extra information requested. There were numerous phone calls and eventually a meeting time was made. This however was cancelled, and subsequent phone calls and emails were ignored. It was only 12 months later following an appeal to senior management that a telephone meeting occurred and an agreement was reached to undertake another review to try to sort the issue out.

This review has yet to occur.

'C' currently has a contract price of $73,668.16 plus GST of $7,366 .82 with a total of$81,034.98. 'C 'works full-time hours and over-time, provides a vehicle and fuel and pays allon-costs for this price. She does not have recreation leave or sick leave but if she did she has to pay a penalty to Australia Post if they have to replace her with corporate staff.