Explosive Allegations

Aussie workers sacked, biosecurity breaches and safety concerns plague Gundaline Station

The owners and managers of Gundaline Station, near Hay, have denied a flurry of allegations. Image: The Riverine Grazier / Krista Schade.

By Krista Schade

The owners of Gundaline Station are facing serious allegations from former employees about their management practices, particularly in relation to staffing and biosecurity measures, but have strenuously denied any wrong doing.

“All such allegations are utterly unfounded,” a spokesperson from Smart Shirts said.

“We fully comply with all Australian employment laws. We normally employ up to 10 workers depending on the seasonal needs - virtually all of them Australian citizens.

“We added one employee from China to oversee our infrastructure development.”

In January, the Sturt Highway property was purchased by Chinese company Smart Shirts through its subsidiary, Ausuntech Pty Ltd, for $121.25 million from Dutch investment firm Optifarm. Smart Shirts, founded in Hong Kong in 1956 and known for its textile and garment manufacturing, has been expanding its presence in the Australian cotton industry.

“Smart Shirts acquired the Gundaline farm as part of our commitment to source sustainable cotton for the products we deliver to customers around the world,” a spokesperson from Smart Shirts said.

“We operate the farm through our subsidiary, Ausuntech. To meet the expectations of our customers and stakeholders, we not only fully comply with local laws and regulations wherever we operate, but in many cases exceed them.”

Early last month, tensions erupted over the management of the property, which is said to be pushing to plant up to 3,800 hectares of cotton this season, compared to approximately 2,800 planted in past years.

Four employees resigned in September 2023, and shortly afterwards long-term employees were made redundant, following disputes over hours worked and safety conditions.

"Some staff were told last month they had (unknowingly) worked too many hours and the business was now in breach of the modern slavery act and supply-chain policies, which would put Gundaline Station's contracts in jeopardy when the auditors and compliance teams turn up," one source said.

In the past Smart Shirts has had lucrative contracts in place with high profile companies such as Lacoste, Hugo Boss, Uniglo, Calvin Klein, Polo Ralph Lauren Corp, VF Corp., Perry Ellis International Inc, JCPenney, Sears Holding Corp and Nordstrom Inc.

According to our sources the owners told staff "…the hours you have worked is big, big trouble for us and if you still stay with us when these companies arrive to audit the working hours, we would lose our business the next day."

"If they can say 'these people are gone,' then the auditor will not dig," our sources claim.

Again, the owners and management of Gundaline Station deny the allegation.

“Until recently, workers on the farm were employed by CFM (Customised Farm Management) however, we recently took on direct employment of our staff, offering them an increased remuneration package.”

Ausuntech, with directors Mr. Ying Yao and Ms. Yin (Jane) Jin, engaged CFM to manage Gundaline Station starting from April 1, 2023, under the day-to-day operation of Richard Malone.

One source describes Mr Malone as "the man who was the driving force behind getting the sale of Gundaline over the line."

Customised Farm Management (CFM) is an Australian-owned and operated rural asset management company based in Moree New South Wales.

“CFM is proud to be a regionally based business and employer,” said CFM’s Andrew Whitlock.

“The CFM business operations contribute significant investment to the local community both through direct employment and contractors/infrastructure spend.”

Irrigation infrastructure was marked ‘do not move’ by the Commonwealth Department of Agriculture, Forestry and Fisheries officers, pending further biosecurity assessments. Images: Supplied

Mr Whitlock said the decision to make staff redundant was not made lightly and was made in consultation with employees.

“Gundaline Station was sold earlier this year to new owners Ausuntech. After that sale, the new owners (as can often happen after a change of ownership) took in-house, a number of the services that CFM previously provided, including the provision of labour services.

“The practical effect of this on CFM was that it could no longer offer CFM employees employment at Gundaline Station because we held no contract to provide the labour at Gundaline Station.

“CFM immediately consulted with the workers based at Gundaline Station in respect of this issue and offered them assistance to find alternative employment.

“CFM complied in all respects with its lawful obligations to those employees.”

Our sources disagree and say amidst alleged growing pressure from Gundaline's owners, Mr Malone allegedly took it upon himself to constantly harass and bully a couple of the staff, in an effort to get them to abandon their jobs.

"Shock redundancy letters were then issued the following week, including to staff who were on work-related stress leave at the time,” one source told The Grazier.

Mr Whitlock categorically denies that allegation, saying “CFM’s senior managers have at no stage harassed any employee.”

”CFM and its senior staff have gone above and beyond CFM’s legal obligations to consult with employees about the effect of the change by the new owners and sought to provide those affected employees with alternative work opportunities.

“CFM has complied at all times with all applicable laws.”

Our sources said one staff member accepted their redundancy offer and left without comment, some have refused to leave, and a handful were offered their jobs back within hours of being made redundant and were back at work the following morning, under the daily direction of CFM.

The remaining staff are being encouraged to help train existing Chinese workers and "fit in with their culture."

The workers, in Australia on Section 482 Temporary Skills Shortage Visas, speak little to no English, making the task of training them to operate complex heavy machinery very difficult and unsafe for anyone involved, according to our source.

"They do not have international driving permits and continue to drive on our highways as unlicenced drivers.”

This temporary visa lets an employer sponsor a suitably skilled worker to fill a position they can’t find a suitably skilled Australian to fill, another allegation disputed by our sources.

"There was a full contingent of Australian workers efficiently managing Gundaline," our sources said.

"Mr Yao only wants his choice of staff so they can grow the 'clean' product he needs to fulfill his contracts for Smart Shirts, given they can't buy cotton from the Xinjiang province in China anymore as slavery is a real thing over there," a source said.

"Gundaline's new Cropping Overseer was recruited at the Lucky Cloud Chinese restaurant in Griffith, where she was working as a part-time waitress. Mr Yao and his partner Joyce Li were having a meal there and told her they owned a big cotton farm.

"They asked if she wanted a job, so now she's Gundaline's Overseer.

"And it's not for cheap labour - the sub-visa 482 holders are being paid almost double the Australian workers hourly rate, earning at least $40,000 extra a year to work the same 38 hours.

"Any sponsoring business must pay a minimum of AUD96,000 to workers they bring into Australia.”

This is despite statements earlier this year attributed to CFM’s Managing Director, Andrew Parkes, and published on real estate agent LAWD’s website.

"Mr Parkes said the new owners share CFM’s commitment to sustainable agriculture and supporting rural communities," the media release states.

“They’ve made a commitment to supporting local communities and rural life, as well as the current team of staff.”

The Australian Worker’s Union (AWU) has confirmed they are following up complaints made by staff.

“We can confirm the AWU is investigating a number of concerning potential underpayments at Gundaline,” NSW Assistant Branch Secretary Ron Cowdrey said.

“If we find that underpayment has occurred we will be looking to assist affected workers with securing compensation.

“Underpayment doesn't just affect the victims, it affects the whole community by driving down standards and putting employers doing the right thing at a disadvantage.

“That's why we'll keep monitoring safety and employment standards at Gundaline and surrounding farms.”

Farming infrastructure materials imported in containers directly from China caused a biosecurity alert recently, when inspectors from Sydney descended on the property and secured a number of items, including irrigation pipes and stops.

The resulting assessment of insects and foreign matter found in those containers and taken away in garbage bags allegedly revealed infestations of Philippines fruit fly (Bactrocera philippinensis), spiders, plant material and seeds that are of biosecurity concern to Australia, but owners say there are no current “open or ongoing matters in relation to the farm.”

The Australian Department of Agriculture, Fisheries and Forestry was contacted but did not comment on the allegations.

"If the government visits commercial premises, the reason for the visit and any outcomes of the visit are likely to be commercial in confidence, and the department may not provide comment about the visit or the outcomes," a spokesperson told The Grazier.

Below right: Numerous imported items were subjected to a ‘do not move’ order, after biosecurity officers descended on the Sturt Highway property. Left: Incorrectly installed culverts are one of the safety issues plaguing Gundaline Station. Images: Supplied

SafeWork NSW have also recently visited Gundaline and issued a series of Improvement Notices on the company.

Our sources claim ongoing safety issues are an accident waiting to happen, and include incorrectly secured irrigation pipes, incorrectly stored chemicals and unsafe plant and machinery.

"Chemical showers are not connected to water. Augurs are without guards. Keys are being left in machinery and tractors allowing for Visa holders to take it upon themselves to go out and 'practice' their tractor driving on weekends when no one is around to supervise or check on their welfare and safety."

Gundaline's on-farm Health and Safety Representative recently resigned from the position effective immediately, stating the lack of controls in place to keep staff safe on the property as the primary reason for the sudden resignation.

A spokesperson for SafeWork NSW confirmed the inspection had taken place.

"SafeWork NSW received a request for service regarding Gundaline Station," they said.

"An inspector visited the site where improvement notices were issued for electrical, confined spaces and emergency response issues.

"The Inspector will continue to work with the business to ensure safety issues are addressed.

"No further comment can be made at this time."

“As the owner of the farm and a responsible member of the community, we have a direct interest in ensuring that all matters relating to environmental stewardship, including biosecurity, are appropriately managed to the highest standards and that the farm is operated in a safe way” Ausentech’s spokesperson told The Riverine Grazier.

“Ausuntech has never been fined or prosecuted in relation to the farm’s operations nor are there any open or ongoing matters with any regulator in relation to the farm,” Ausuntech’s spokesperson told The Riverine Grazier.

One source claims local ‘pub talk’ has Carrathool district farmers fearing a complete regional takeover by foreign companies, yet Smart Shirts says it has no plans to expand.

“We have no plans to expand our land holdings there; rather, we are focused on investing in further development of the farm and its operations and contributing to the growth of our community."

Rumours abound that Rudd's Point and other sites may be the next to fall under the hammer, pending approvasl by the Australian Foreign Investment Review Board (FIRB), but our sources claim "one deal is already done."

Despite the speculation, Ben Minarto, principle of OJ Minarto Pty Ltd, owners of Rudd's Point says the farm has not been sold.

No FIRB application regarding a sale has been filed.

Sources told The Riverine Grazier they feel Australia is poised to become a main site for Chinese cotton production, and properties in the Riverina are "quietly being bought up, while all the media attention has been focused up north, on the likes of Cubby Station, in recent years."

Ausuntech says their focus is on the efficient management of Gundaline station.

“Ausuntech’s current focus is on further financial investment in the development and operation of the Gundaline farm,” a spokesperson from Ausuntech said.

“The farm not only produces substantial cotton and various winter crops, but provides direct and indirect employment opportunities and other economic benefits to the local regional community.”