AUSTRALIA POST has sacked a contractor accused of exploiting foreign workers.

The Australian Federal Police conducted raids on the contractor this morning amid claims he was using foreign students to deliver mail in breach of their visa conditions.

The workers were allegedly underpaid, with superannuation and other entitlements not covered.

The Communications Union said it had complained to Australia Post in writing three years ago about the contractor Baljit Singh.

He had several contractors deliver mail in Melbourne’s north west, including Whittlesea.

media_camera Baljit Singh, the Australia Post contractor sacked after claims he was exploiting foreign workers. Pic: Supplied

CEPU secretary Joan Doyle said she was disappointed her complaints had not resulted in action sooner.

“He’s got dozens of contracts,” she said.

“There have been complaints about device standards but it’s not the workers’ fault.

“You can understand they are recently arrived, they don’t speak English. We’ve been complaining for years.”

Ms Doyle said Singh had been accused of running a training college to help get students visa entry into Australia.

Student visas have a 20 hour per week cap on working hours.

But Ms Doyle said some of the students were working more than 40 hours a week.

She said that Singh had forced “mum and dad” contractors out of the market because they could not compete with Singh’s steady supply of labour.

Australia Post has released a statement saying it has been working closely with the Australian Federal Police for a number of weeks on an investigation into the contractor.

“The investigation is not focused on any employees or the conduct of Australia Post,” it said.

Post said it had previously taken Mr Singh to the Fair Work Ombudsman after complaints by the union but the workplace rights adjudicator said no further action was needed.

“Australia Post was guided by this decision,” Post said in its statement.

Post chief operating officer Ewen Stafford said improper or illegal behaviour by contractors would not be tolerated.

“We have terminated all contracts with the delivery contractor involved in this investigation,” he said.

“We work with more than 3500 principal contractors on a daily basis. The isolated

behaviour of a sole delivery contractor should in no way reflect on the integrity of the

broader delivery network.”

Australia Post said it was broadening its compliance program for delivery contractors to include spot audits.

Two men allegedly involved in the scam were released on bail late Wednesday.

Mukesh Sharma, 42, and Rakesh Kumar, 37, are each facing five charges including conspiracy to obtain if gain from a Commonwealth entity, possessing forge documents and dealing in money suspected to be the proceeds of crime.

The Melbourne Magistrates Court heard the alleged scam is linked to education providers in the northern suburbs and involved fraudulently obtained government grants and 100s of foreign students who were subcontracted out to Australian Post.

Each man is expected to reappear on January 21 for a committal mention.

stephen.drill@news.com.au