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Thursday, 15 May 2008

Parramatta: Union uncovers thousands in unpaid super

Tens of thousands of dollars in unpaid superannuation owed to workers on Parramatta building sites has been uncovered by a construction union blitz, highlighting the need for government action.

The Construction Forestry Mining Energy Union launched the campaign after the family of Greystanes man Chris Poumale missed out on $200,000 following his death because his employer had failed to pay superannuation entitlements.

During the last week five sites in Parramatta were visited, with CFMEU officials finding 80 workers who were owed almost $100,000 dollars by 16 employers on these sites.

“We have uncovered a wholesale disregard for the law, with many employers deliberately underpaying superannuation or not paying at all,” said CFMEU NSW Secretary Andrew Ferguson.

“The situation is at its worst in Western Sydney, with the majority of workers on small sites and in the housing sector not receiving their entitlements, with migrant workers the most affected.

“Unpaid super doesn’t just affect workers lives in retirement, it also robs families of vital financial support when a worker dies or suffers a serious injury that prevents them from working again.”

Earlier this year, a union survey of employers on more than 50 Sydney building sites uncovered:

  • 30% failing to pay superannuation;

  • 18% more than three months behind with payments to super funds;

  • 29% underpaying superannuation due to incorrect calculations;

  • Only 23% fully compliant;

  • More than 90% of ABN contract workers were not receiving superannuation entitlements.

“In recent years many workers, including apprentices, have been forced to get an ABN and become contract workers, but what most don’t realise is that they are still entitled to receive superannuation and have workers compensation premiums paid by their employer,” Mr Ferguson said.

“The CFMEU is calling on Prime Minister Rudd to increase superannuation education, especially for migrants, and to beef up the compliance work of the ATO to ensure a proactive approach to ensuring workers receive their legal entitlements.”