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Victorian company Viplus Dairy repays underpaid backpackers

DSC00243A Victorian dairy company that ripped off two Taiwanese backpackers has agreed to repay the workers and revise its workplace practices.

The factory, Viplus Dairy in Toora, underpaid the Taiwanese workers $7400 over three months in 2015 and said the lower wage was justified because it provided the workers with “free” accommodation.

The casual workers, who were in Australia on 417 working holiday visas, were underpaid $3696 each while packing infant formula destined for the lucrative Chinese market.

They were paid a flat rate of $15 an hour at the Toora, South Gippsland factory of Viplus Dairy Pty Ltd.

The workers, who have since returned to Taiwan, should have been paid $21.09 for normal hours worked, but the company told the Fair Work Ombudsman that in addition to the $15, it provided the workers with free accommodation and utilities.

The couple, who worked there from January 12 to April 14 last year and who spoke limited English, communicated with Fair Work inspectors via an interpreter. They contacted the Agency in July.

Viplus Dairy has now signed an Enforceable Undertaking to encourage behavioural change and ensure future compliance with its workplace obligations.

Fair Work Ombudsman Natalie James said the employer co-operated with the investigation, repaid the employees and revised its workplace practices.

She said all employees working in Australia, including visa-holders, were entitled to minimum wages, which were not negotiable.

The Fair Work Ombudsman currently has a national Inquiry into the wages and conditions of 417 working holiday visa-holders in Australia.

The agency is now receiving more requests for assistance from visa-holders than ever before, with requests from visa-holders accounting for almost 12 per cent of all requests lodged last financial year.

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