Spotless Group Limited : Media Release - Shopping Centre Union Claims

Spotless Media Release

23 November 2011

Spotless pledges safe work loads, Award wages & clean shopping centres

Shopping centres will remain clean and tidy before, during and after the holiday and Christmas period with
Spotless ensuring the highest cleaning standards, safe workloads and wages set by the Fair Work umpire.
If industrial action takes place, all shifts will be fully staffed and shopping centres will remain open for business. Any industrial action will only impact striking cleaners with lost wages.
Sadly, the union continues to target Spotless which offers job security, training and legislative entitlements while other cleaners languish on cash-in-hand and wages less than the Award.
Spotless employs more than 5,000 cleaners in Australia. As the only public company in the sector it ensures high standards, a safe workplace, balanced workloads and ongoing occupational health and safety training and support for its cleaners. For example, over 500 Spotless cleaners are currently undertaking traineeships.
The union is fully aware that its Clean Start Retail campaign ignores all other cleaners and that it can apply to the umpire, Fair Work Australia, to lobby for an increase in the wage standard for all cleaners. The Award has ensured three wage increases for cleaners in the past 18 months, including a wage increase on 1 July 2011. Spotless relies on having qualified and adequately remunerated employees and will immediately pass on future increases to the Award to all cleaners, not just those working in shopping centres
The union's campaign should be directed at the real issues facing the industry - thousands of cleaners across Australia paid under the Award through sham pay arrangements. The sham contracting problem is so serious that in May 2011 the Government announced it would look into the cleaning industry. This Government action is strongly supported by Spotless.

BACKGROUND

• Spotless pays employees under 12 Modern Awards, including the Cleaning Services Award.

• The union has for several months sought an enterprise agreement with all major cleaning contractors in

Australia who work at shopping centres. Negotiations broke down in September 2011.

• While Spotless was not part of the negotiations, all other contractors walked away from bargaining as the bid for a 33 per cent wage increase for cleaners in the retail sector is not sustainable in the current economic environment.

• The union has not disclosed that its negotiations have failed and instead seeks to target Spotless, a contractor that plays by the umpires' rules (Fair Work Australia) and pays the Modern Award.

• Fair Work Australia, the national workplace relations tribunal, increased cleaners' wages by 3.4 per cent from July 2011. This follows various wage increases on 30 June 2010 and 1 January 2011.

WHAT IS SHAM CONTRACTING?

Sham operators often pay their cleaners cash in hand, do not pay penalty rates, and deny sick leave, superannuation and other entitlements. This means they can offer a cheaper cleaning price. Therefore Spotless has lost business to these sham contractors because it refuses to lower its standards or compromise safe work practices and pay rates. This problem would only be exacerbated if Spotless agreed to the unrealistic and unsustainable wages demanded by the union.

Media

Kerrina Lawrence: 03 9269 7582 / 0434 198 427
About Spotless www.spotless.com

Spotless is a leading international services company comprised of two distinct operations, Facility Services and Retailer Services. Established in 1946, Spotless is listed on the Australian and New Zealand Stock Exchanges. Spotless employs more than 40,000 people and skilled sub-contractors to deliver over 125 specialist services in thousands of locations. The Group's Facility Services operations supply catering, cleaning, maintenance, facility management and laundry services across a broad range of industry sectors. Retailer Services, operating under the brand Braiform, provides customised garment hanger and packaging solutions to retailers and garment manufacturers in 32 countries.