Jeff Waters reported this story on Monday, May 20, 2013 18:18:00

DAVID MARK: The Communication Workers Union claims some workers who deliver parcels for Australia Post are being paid under the minimum wage, and aren't covered by worker's compensation or superannuation.



The delivery subcontractors, who often spend some of their day working inside Australia Post premises, say they're being ripped-off by their employers - who are private contractors.



The ABC has uncovered one case of a former subcontractor who says she was also required to use her own car, and pay for petrol. She says for two hours a day she wasn't being paid at all.



Jeff Waters reports.



JEFF WATERS: Fiona Lawson says she was pleased to secure a job at an outer Melbourne Australia Post depot, delivering parcels as a subcontractor or subbie. She was desperate for the money.



What did it mean to your family finances if you didn't - if you couldn't find a job?



FIONA LAWSON: We wouldn't be able to stay in the house, 'cause my husband was off work, he hurt himself. And, yeah, so what money we did have saved up went to that. So yeah.



JEFF WATERS: Mrs Lawson says she trusted Australia Post.



FIONA LAWSON: Yeah, well it's meant to be a government facility and, well, yeah.



JEFF WATERS: But she says the contractor who employed her to sort and deliver Australia Post parcels, required her to work from 5am to 7am for under the minimum wage. From 7am to 9am, she says she scanned and loaded the parcels into her own car for no pay at all. She was then paid $1 for every address she had to deliver parcels to. All the time she says she had to use her own car and pay for the petrol.



Fiona Lawson earned between $1,000 and $2,000 a month before tax, but was told she had to arrange her own worker's compensation, insurance and superannuation.



FIONA LAWSON: I don't know if it's just the contractors or it comes from above, I can't say. It's just one of those things. But yeah, if they're doing the dirty on us then who else are they going to do the dirty on?



JEFF WATERS: She's now taking the matter to court. Mrs Lawson says about six other people worked for her contractor.



When the ABC visited the depot where Mrs Lawson worked, we saw several people loading cars with Australia Post parcels. One person had a heavily-laden private station wagon with no cargo barrier.



The contractor who employed Fiona Lawson as a subcontractor works from the same depot. We spoke to her by telephone but she declined an invitation to comment.



The Communication Workers Union says the problem is widespread. Joan Doyle is the union's Victoria state secretary.



JOAN DOYLE: There are subcontractors or employees of the head contractor and there's not enough money for even the head contractor to make an award wage. But then when they sub it out it gets pretty ordinary.



Obviously they are taking advantage of the cheap labour, and what we're saying is that's a very poor position for a government business enterprise to be taking.



JEFF WATERS: A spokeswoman for Australia Post says the company makes all of its contractors sign agreements that they'll abide by the law when employing subcontractors. But she said that, with 800 parcel contractors and 3,500 drivers, the company does not actively monitor them all of them, but will follow up complaints.



DAVID MARK: Jeff Waters prepared that report.