The federal workplace watchdog is prosecuting a South-West transport company for allegedly underpaying two truck drivers almost $50,000.

The Fair Work Ombudsman has launched legal action against The Palcon Group Pty Ltd, which operates a business in Australia primarily engaged in transporting timber.

The Palcon Group employed the two allegedly underpaid truck drivers full-time under Australian Workplace Agreements (AWAs) that provided for the drivers to be paid a base rate, plus bonus payments based on the quantity of timber they carted.

The Fair Work Ombudsman started investigating The Palcon Group after the truck drivers complained that they had been underpaid.

Documents lodged in the Federal Magistrates Court in Perth allege the company underpaid one driver’s bonus by $28,552 over two years from 2005 to 2007 and the other driver’s bonus by $19,027 over 10 months in 2005-2006.

The company allegedly also breached an undertaking it gave to federal authorities regarding the meaning and operation of the bonus entitlements under one of the AWAs. Without this undertaking, authorities would not have approved the AWA.

The Palcon Group back-paid the drivers, whom it no longer employs, in June this year.

Fair Work Ombudsman WA Director Leigh Quealy says the decision to prosecute was made because of the significant amounts involved and the company’s alleged failure to honour the undertaking it gave.

“The Fair Work Ombudsman plays an important role in ensuring workplace agreements meet the relevant minimum conditions of employment and that employers and employees comply with their obligations under agreements,” Mr Quealy said.

“We treat issues of non-compliance with agreements, particularly breaches of undertakings regarding agreements, very seriously.”

The Palcon Group allegedly committed multiple breaches of workplace laws. It faces a maximum penalty per breach of $33,000. The case is listed for hearing on 9 September.

The Fair Work Ombudsman promotes harmonious, productive and co-operative workplaces. It also monitors compliance and investigates breaches of national workplace laws.

Employers or employees seeking assistance should contact the Fair Work Infoline on 13 13 94 or visit www.fwo.gov.au For translations call 13 14 50.