Pacific workers face $4million financial disaster as labour firm collapses

PACIFIC workers face an uncertain future after the collapse on Australian labour hire company with debts of around $AUD12.2 million.

The collapse leaves former workers facing a $AUD4 million shortfall in unpaid superannuation.

The liquidator does not anticipate making payments to creditors, meaning these employees, many of whom are from Vanuatu, are unlikely to recover their funds.

This downfall follows years of overdue tax reminders and a failure to settle key debts since 2022, leaving the company’s fallen promises as a legacy of debt and broken commitments.

While Chief Executive Officer Rodney Prestia received a presidential medal in 2024 for his work with Ni-Vanuatu employees, liquidator David Sampson reveals the firm was in deep financial distress.

Investigations suggest iComply may have been trading while insolvent since May 2023, with trading losses and tax debts dating back to at least 2021.

“I’m very aware of that particular company, and I’m urging the authorities to throw the book at them and to pursue every single dollar of unpaid wages and superannuation,” said Penny Wong, Australian Minister for Foreign Affairs.

“We’ve recently made changes to the way superannuation is paid that will give greater certainty and security to all workers in Australia, including Pacific workers.

“An important principle of the Albanese Labour government around the Palm is we’ve changed the law to make sure that Pacific workers get the same entitlements and protections as every Australian worker.” 

She added they are required to be paid the same wage under the same industrial agreements, including superannuation.

“We will continue to pursue that company for any wrongdoing and breaches.”