FEDERAL Labor politician Carmen Lawrence has written to a Fremantle cafe that decided to opt out of WA’s industrial relations system by making its workers individual contractors.
As a result of its decision to pursue an individual contract-type system the cafe owners, who have requested that its name not be released, say they were subject to intimidation from the Australian Liquor Hospitality and Miscellaneous Workers Union (LHMU).
The contract approach, put in place by Australian Contracting Solutions, means that workers at the cafe were no longer operating under the award that covered the business.
On September 1 the cafe’s owners received a letter from Dr Lawrence in which she says she has been “asked to urge you to reconsider your decision to convert your existing employees to individual contractors through Contracting Solutions”.
“This move concerns me greatly given it will result in a number of negative and unfair effects on workers. These effects include the absence of annual and sick leave, a guaranteed rate of pay and rostered days off,” the letter says.
In the letter Dr Lawrence also says that the contracting arrangement was a way of avoiding payroll tax.
Australian Contracting Solutions principal Ray Crake said the system he had put in place at the cafe did not affect the sick and annual leave arrangements that had been in place for those workers before they became contractors
“It’s also not avoiding payroll tax because we have to pay that as a labour hire firm,” he said.
Two weeks before the letter from Dr Lawrence the cafe had received a letter from Derek Schapper, a lawyer representing the LHMU, advising that it would take “such legal action as necessary to defeat any attempt by you to avoid your award obligations”.
“The LHMU wishes you to understand that it regards the contracts which you have pressed upon these employees are a sham which cannot alter the legal relationship of employer and employee.
“The LHMU requires your written acknowledgment that employees and ‘contractors’ will be restored to their employee status by close of business August 23, 2002. Please be assured that unless we receive your acknowledgment to this effect the LHMU may commence legal proceedings against you without further notice.”
The Beachside Cafe in Albany undertook a similar contract arrangement through Australian Contracting Solutions. That business was also subjected to intimidation by the LHMU and also received a visit from the WA Government’s Building Industry and Special Projects Inspectorate.
Mr Crake said the Beachside Cafe investigation had not proceeded to a prosecution.
He said there had been no further action against the Fremantle cafe either.
Dr Lawrence could not be contacted for comment.
