United Voice union supports Spotless raider
24 Jan 2012
By James Frost, The Australian, AN unlikely alliance between the union movement and private equity is the latest fly in the ointment for the Spotless board, as it moves closer to a showdown with a group of unhappy investors and a potential board spill.
Representing more than 120,000 Australian workers, the United Voice union has blasted the management of Spotless, the target of a $711 million takeover bid, for being arrogant and said it would rather work with private equity than the existing owners.
"Spotless is floundering and in need of a shake-up," Michael Crosby of United Voice said.
"Management has failed to deliver value for shareholders and has failed to respond to cleaners' concerns about the crisis in the cleaning industry. They have shown themselves to be arrogant. Any change in management, be it privately owned or publicly listed, would be welcomed."
The serve from the union comes as fund managers and shareholders try to persuade the company to accept the $2.68 a share bid from Pacific Equity Partners or face an extraordinary meeting and board spill.
Representing more than 4000 Spotless employees, United Voice has echoed many of the sentiments expressed by critics such as Orbis Australia and Investors Mutual.
"Spotless has treated shareholders and cleaners with disrespect," Mr Crosby said before adding that many of the Spotless workers represented by United Voice were also indirect shareholders in the company.
"Evidence we have gathered suggests that Spotless has failed to property inform its shareholders about the progress and the benefits stemming from its transformation program."
Spotless would not be drawn on the union's claims of failing to properly inform its shareholders but a spokeswoman described the rest of the union's claims as a stunt. "The . . . statements by United Voice discredit the union and disrespect tens of thousands of hard-working cleaners across Australia," she said.
"This stunt is the latest in a series by the United Voice union, forming part of a wider fear campaign . . . aimed at property owners and contractors to bargain for a separate wage agreement for shopping centre cleaners.
"United Voice has ignored all other cleaners over this time, thereby seeking to create pay disparity for cleaners."
Insiders say the issue is not with Spotless but with union members who choose to take on work with contractors who pay cash in hand but do not adhere to award wages and conditions.
According to Spotless, it pays award wages and had recently assumed responsibility for hundreds of employees after a sham cleaning contractor at a major shopping centre went broke.
It says the union should focus its efforts on raising award rates rather than high-profile public companies. "Spotless believes that the modern award, introduced by the current government, should be the focus of any wage campaign to ensure all cleaners benefit equally," the spokeswoman said.

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