"Baby formula manufacturer accused of underpaying workers"

The Fair Work Ombudsman has commenced legal action against a baby formula manufacturing and packaging company.

Facing court is CBS International Trading Co., which has operated a baby formula factory in south-east Melbourne.

The FWO investigated after receiving requests for assistance from three workers the company employed on a full-time basis between June 2022 and May 2024.

One of the workers, a Hong Kong national, was in Australia on a temporary graduate visa at the time.

The workers were employed as machine operators to work on the company’s production line, blending and packaging baby formula products…

…belief the company had underpaid the three workers’ annual leave entitlements and had underpaid two of the workers’ minimum wages…

It’s alleged the amounts the company was required to pay to comply with the Compliance Notices totalled $13,294, with individual amounts ranging from $3294 to $6166…

The FWO is seeking penalties against CBS International Trading Co. in court for the alleged failure to comply with two Compliance Notices. The company faces penalties of up to $93,900 per breach.

The regulator is also seeking an order requiring the company to comply with the Compliance Notices, including rectifying any amount owed in full, plus interest and superannuation.