Telecommunications infrastructure provider, Chorus (ASX:CNU) has committed to working with service companies, Visionstream and UCG, to create a fairer supply chain.
This follows an independent review undertaken by MartinJenkins on Chorus’ behalf after the Labour Inspectorate identified a number of employment law violations among small businesses subcontracted to Visionstream and UCG.
The report found that as the proportion of migrant workers increased, the model became more vulnerable to risk and this was not well understood or managed by Chorus, Visionstream, or UCG.
Chorus will implement a number of responsive measures including publishing and educating suppliers on a Supplier Code of Practice; providing ongoing reports to government and industry; requiring each of its service companies to appoint an independent auditor who will conduct assurance and reporting on sub-contractor compliance with labour law; and establishing a trust fund for certain eligible workers who are unable to secure payments due from their employer.
Shares in Chorus (ASX:CNU) are trading 0.36 per cent higher at $5.65.