Scrooge McPrint refused to pay Christmas wages

Former Beaver Press owner, Robert Francis, has copped an $8,000 Federal court fine after deliberately underpaying five long-term print-production employees $55,145 two years ago, before the company went bust.

In a prosecution brought by the Fair Work Ombudsman, Francis was castigated by the magistrate as showing no remorse for the financial hardship of his employees and being in denial about his culpability for the failure of the company. Federal Magistrate Smith accepted the evidence of a former Beaver Press employee of over 20 years, about a conversation in the company carpark about two weeks prior to Christmas 2009.

According to a report by the Fair Work Ombudsman, the long-term employee had begged Francis for his back wages, claiming the money was needed for his kids Christmas presents, “Or they’re not going to have a Christmas morning.” To which Francis replied: “Well I’m not getting any Christmas presents either you know. If you don’t like it, then leave.”

The Court also heard that a month earlier, in November, 2009, Francis had addressed a staff meeting at the factory, telling workers words to the effect: “People owe me money. I’m waiting on cheques to come in. Once that’s happened, I’ll pay a couple of people their wages a week until we’re caught up. If you don’t like that, you can leave.”

In his judgment, Federal Magistrate Smith says that in the months before Francis took his company into administration, “wage payments appear to have been staggered, with the intent of saving the company necessary wages-expenses while seeking to benefit from the unpaid labour of some of its employees.

“The non-payments were deliberate, as was a refusal to pay them in arrears.”

Further, Federal Magistrate Smith said: “I infer that Francis had the intention of keeping the company operating with an appearance of solvency to external creditors, notwithstanding that he was unable to pay employee entitlements, which deserved prompt and priority consideration.

“I am not satisfied that he has any acceptable excuse for conducting the financial affairs of his company so that they were unable to meet its statutory obligations to employees when they arose, or even in the course of insolvency administration,” Federal Magistrate Smith found.

“Francis has had the opportunity, which he has declined to take, to appear before me in person or through a representative to establish external causes for his contravening conduct.

Francis owed one employee over $16,000 in back pay when he put Beaver Press into voluntary administration in April 2010. A year from Beaver Press’ administration, Francis placed his following printing company Goodcrowd Printing into liquidation as of March 2011.

Trade continues under a new name, Goodcrowd Integrated Print Communications, helmed by Francis’ son David who has carried his role of general manager from Beaver to its current evolution. Francis is the sole director and majority owner.

Fair Work Ombudsman Nicholas Wilson says the Court ruling reinforces the fact that deliberate underpayment of staff is a serious matter. “It is important for us to take action against those companies and individuals who show little regard for employees’ lawful workplace rights,” says Wilson.