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Bulmer Farms claims $645,000 underpayment a ‘genuine mistake’

Farm stock image
Bulmer Farms has been growing leafy greens in in East Gippsland since 1989 (Source: Bigstock)

Victoria-based Bulmer Farms has promised to “immediately act”, after legal action was pursued by the Fair Work Ombudsman (FWO), over allegations of underpaying its migrant employees by $645,000.

Inside FMCG reported on the FWO’s action against Bulmer Farms, to which the vegetable supplier has now responded.

“Bulmer Farms is working with the Fair Work Ombudsman (FWO) to rectify unintentional underpayments and deductions made by the company to 28 current and former full-time Pacific Australia Labour Mobility (Palm) scheme employees between 2019 and 2023,” Bulmer Farms MD, Andrew Bulmer, said. 

Bulmer added that 15 of those employees still work for the business. 

“As soon as we have quantified the underpayments, we will immediately act to pay the outstanding monies owed to each employee,” he added, claiming the process is expected to be completed by early February at the latest.

Bulmer Farms has participated in the Palm scheme for more than 10 years; it claims this is the first time that concerns have been raised.

“Based on the FWO’s preliminary findings, it appears that the underpayments occurred leading into, during, and shortly after the Covid-19 period,” Bulmer said. “Like many horticulture businesses, the pandemic placed significant pressure on Bulmer Farms’ operations, including the administrative resources needed to manage the Palm scheme.

“Bulmer Farms is a horticultural business with more than 120 Australian and Palm employees during peak periods. Bulmer Farms has been growing and harvesting vegetables since 1989. Our company’s strength is founded on the respect and support we provide to our people.”

Andrew Bulmer called the underpayments “totally unintentional” and “completely out of step” with the company’s values.

“These were genuine mistakes, not intentional decisions, and we are correcting them,” he added.

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