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The enforceable undertaking

Under the EU, Coles was required to:

  • Communicate the existence of the EU to all employees and to UTC
  • Direct UTC to make a copy of the EU available to all its independent contractors and employees
  • Monitor and support UTC to ensure UTC conducts its audit requirements under UTC’s Deed of Proactive Compliance with the FWO
  • Continue offering a hotline service, requiring store managers to escalate complaints of wage underpayment by trolley collectors directly to the Coles Head Office
  • Advertise the hotline at any Coles site at which trolley collection is undertaken by a trolley collection contractor
  • Investigate any trolley collection wage underpayment complaints received from the FWO and through the hotline within 28 days, and advise the FWO of the results
  • Produce annual reports to the FWO on complaints received from trolley collectors, including actions taken to investigate complaints, the average time to conclude investigations, and the amounts of any underpayments
  • Make ex-gratia payments totalling nearly $221 000 to 10 employees of trolley collection contractors. These employees had worked at Coles sites
  • Establish a $500 000 “Guarantee” reserve fund, available to be distributed to trolley collectors employed by UTC or subcontractors to UTC, in the event trolley collectors are found to be underpaid
  • Require UTC or the relevant subcontractor to rectify any underpayments, or Coles will rectify the underpayment within 28 days
  • Conduct annual audits of a minimum of 20% of direct sub-contractors of UTC for each year of the EU, each audit to be independently reviewed and certified as accurate by a third party Certified Public Accountant, at the expense of Coles
  • Design and implement a workplace relations training program for roles identified as managing and/or procuring trolley collection services, reporting directly to the General Manager responsible for trolley collection services.

The EU will continue until 31 December 2018, or in recognition of the work Coles had commenced to bring all trolley collection work ‘in-house’ prior to the EU being executed, when all trolley collection is undertaken by Coles’ employees.