Insulation industry news from Global Insulation

Australia: A company that was engaged under the federal government's former home insulation programme will be prosecuted for allegedly underpaying five Somali teenagers an estimated USD25,700, following a national audit of the scheme. It is understood that the teenagers told federal workplace inspectors they were asked only for their names and mobile phone numbers when employed in 2010 by Louay Soliman and his company, K & L Insulation Pty Ltd. The workers, all Somali immigrants aged 18 and 19 at the time, alleged they were not given training or any protective equipment, apart from masks.

The Fair Work Ombudsman alleges that Mr Soliman and his company, based in the north Melbourne suburb of Campbellfield, underpaid the five employees a total of USD25,700 over several weeks in March and April 2010. Court documents filed by the Fair Work Ombudsman allege the employees worked up to 10 hours a day, six days a week and in some cases were paid flat rates equating to as little as USD10.10/hr.

Under the modern award that applied to their positions, the workers were entitled to hourly rates of USD16.30 for normal hours worked, up to USD31.8/hr for overtime and weekend work and up to USD40.1/hr on public holidays. It is alleged that the employees were underpaid with respect to other entitlements, including accrued annual leave and wages in lieu of notice after their employment was terminated without notice.

The government's insulation scheme came in for heavy criticism in 2009-2010 following a number of worker deaths attributed to electrified foil insulation inside roof cavities and heat-exhaustion. Many were critical of the speed with which the government attempted to implement the plans in order to create jobs at a time of recession, claiming that there were insufficient checks to stop malpractice, unfair treatment of workers and violations of health and safety. The company cited in this case was established in December 2009.