Coles linked in MA Services guard scandal as retailer rejects claims it knew workers were underpaid
Coles has defended its use of collapsed security contractor MA Services Group, denying it entered a multimillion-dollar deal knowing guards at its supermarkets would miss out on legal entitlements, according to reports.
The retailer is under pressure after Victoria's Labour Hire Authority chief, Steve Dargavel, alleged Coles' $50 million-a-year contract with MA Services could not have supported proper pay and conditions for guards, and that the company knew workers would be exploited, the Australian Financial Review (AFR) reported, citing earlier coverage in The Sydney Morning Herald.
Coles, Australia's second-largest supermarket chain, maintains the pricing of its security deal was in line with industry norms and provided enough margin for MA Services to comply with workplace laws.
Their contract also explicitly required legal minimums to be met for anyone guarding its stores, according to a spokesman from Coles.
"The contract included requirements that all workers employed by MA Services for Coles-related work must receive their full legal entitlements," the spokesman said as quoted by the AFR.
Coles told the news outlet that it carried out regular oversight of MA Services, including audits and spot checks, before the contractor's collapse in December amid allegations of tax fraud, underpayment and links to criminal entities.
"Any exploitation of workers is unacceptable,...
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