Yesterday the Fair Work Ombudsman released news of successful legal action against an Adelaide Transport Company.

The drivers’ minimum wages and a range of other entitlements were underpaid between 2007 and 2009 by the company, which linehauls bulk petroleum products into the Northern Territory, NSW and Western Australia.

After an investigation and legal action by the Fair Work Ombudsman, the Industrial Relations Court of South Australia penalised the company a total of $93,000 and, in addition, ordered it to back-pay the 10 truck drivers their outstanding wages, plus superannuation and interest totaling $374,487.

However, after The company lodged an appeal, the company ordered to pay approximately $468,000 to the Court, which held the funds in trust pending the outcome of the appeal.

After dismissing the appeal, the Federal Court made orders late last year allowing for the money to be released from trust and paid to the truck drivers.

The truck drivers have now received back-payments ranging from $8,012 to $91,566.

In dismissing the appeal, the Federal Court rejected The company’ argument that the compensation payable to two of the drivers should be reduced because it had entered into Deeds of Release with drivers prior to the Fair Work Ombudsman commencing legal action.

Justice Richard White found that the Fair Work Ombudsman was not bound by the Deeds of Release between the company and the drivers. He found that because there was no genuine legal dispute between the company and the drivers at the time the Deeds were signed, the Deeds were an attempt to contract out of the company’s obligation to pay the drivers their minimum Award entitlements.

Justice White also rejected The company’s arguments relating to a third driver the company claimed was covered by a Collective Agreement during the underpayment period.

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