Up to 15,000 workers face underpayment, withholding of wages and threats of violence, Australian campaigners say

Supermarket chain Coles must act to protect workers from “modern slavery” practices in its huge fresh food supply chain, according to a resolution being put to shareholders at the company’s annual general meeting on Wednesday.

As investors gather for the AGM in Melbourne, campaigners are demanding that the company has to “protect its interests and reputation” by bringing the treatment of thousands of workers into line with its “ethical sourcing policies and supplier requirements”.

Campaigners say there are up to 15,000 workers employed in slavery-like conditions in Australia, with problems including severe underpayment, withholding of wages, excessive overtime and threats of physical and sexual violence.

The Australian fresh food sector, in which Coles and its rival Woolworths buy up around 70% of the market, is seen as one of the worst culprits.

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The resolution, which has been brought by the Australasian Centre for Corporate Responsibility, says best practice should incorporate core principles of “worker-driven social responsibility”. It says workers should be consulted about which suppliers are used and they should be allowed to have unions involved in labour rights education and grievance procedures.

It is the the first such motion in Australian corporate history and follows the passing of the Modern Slavery Act by the Turnbull government in 2018. The legislation requires hundreds of large companies to publish an annual slavery statement signed off at board level.

Putri, a migrant farm worker, said: “We face racial abuse, verbal and physical harassment, and wage theft. The average wage is $14.80 per hour, often paid in cash. We are expected to work in dangerous conditions including temperatures above 35C with no drinking water.”

But she said workers were trying to fight back by organising themselves and called on Coles to sign an accord with the United Workers Union.

Anh, a United Workers Union farms organiser, used to work for $12.50 an hour on a salad farm that supplied Coles and said exploitation was “rife”.

But after joining together with colleagues, they won full-time jobs and a base wage of $21.60, several dollars above the minimum wage of $18.93.

“I’m asking Coles to make an agreement with United Workers Union so every farm worker has the chance to change our lives the way we did,” he said.

Investors supporting the motion include LUCRF Super and Mercy Investment.

IFM Investors, a Melbourne-based investment fund with $140bn under management, held a forum with workers in Shepparton, Victoria to hear their concerns. IFM has called for more scrutiny of labour hire firms in the sector to encompass unions, community groups, growers and supermarkets. It also said there should be more unannounced visits to farms by auditors, better grievance procedures and more opportunity for workers to learn about their workplace rights.

Katie Hepworth of ACCR said: “Coles is well aware of the widespread, persistent and extreme labour abuse and exploitation in Australian fresh food supply chains, including its own. It is clear that their current systems are not working.

“The only models that have been shown to be effective to deal with the types of labour rights abuses seen on Australian farms (which in more extreme cases includes modern slavery) are those which include a formal role for workers, supported by their chosen representatives.”

The resolution received the support of 12.79% of shareholders. Coles will have to publish its first report under the new Modern Slavery Act in the second half of 2020.







