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Silo Manufacturer Penalised $60,000 For Underpaying Workers

Silo manufacturer penalised $60,000 for underpaying workers

A silo manufacturer has been penalised $60,000 for underpaying workers and failing to produce employment records.

The Fair Work Ombudsman says the company has a long history of non-compliance with workplace laws.

Silo manufacturer underpaid two workers

The Federal Circuit Court imposed a $50,000 penalty against Lindsay F Nelson Manufacturing Pty Ltd, which trades as Nelson Silos.

Additionally, the court imposed a $10,000 penalty against one of the company’s directors and part-owners, Eric Frederick Nelson.

Nelson Silos underpaid a casual driver who delivered silos for the company by $3,663.

The company paid him a flat rate of $20.62 for all hours worked.

However, he was entitled to:

  • minimum casual rates of $23.46 for local driving work,
  • minimum casual rates of $32.38 for long distance driving work
  • and overtime rates of up to $39.42.

Additionally, the driver did not receive overtime meal allowances.

Furthermore, Nelson Silos underpaid a full-time turner and fitter who helped manufacture silos by $8,522.

The company underpaid the worker’s accrued annual leave when he left his job.

He was owed $10,574, however, the company paid just over $2,000.

Company has long history of non-compliance

Fair Work Ombudsman Sandra Parker says Nelson Silos had a long history of non-compliance.

“The Fair Work Ombudsman has previously put this employer on notice about its lawful obligations to its employees under Australia’s workplace laws.

“We encourage any workers with concerns about their wages or entitlements to contact us for free assistance.”

Failure to produce records

During its investigation, a Fair Work Inspector issued Mr Nelson a Notice to Produce employment records in relation to the two workers.

However, he failed to provide records in relation to the driver.

Consequently, the court he breached workplace laws requiring a person to comply with a written Notice to Produce unless they have a reasonable excuse.

The penalty imposed for this breach made up a proportion of the overall penalties the Court imposed on Nelson Silos and Mr Nelson.

Both employees have been repaid all wages and entitlements owed to them.


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