Spotless Posts Massive Profits, But At What Cost?

Spotless might be claiming a massive profit of $42.8 million, including $14.1 million in income from cleaning alone, but the company’s bad business practices could lead to a disastrous future.

Louise Tarrant, National Secretary of United Voice, the cleaners’ union, said that there are deep concerns that Spotless management hasn’t shown the leadership and forethought that employees and investors deserve.

“Spotless’ overall profit has shrunk, despite recent growth revenue through acquisitions and contract wins. We think their business strategy is short-sighted, which is a risk to investors and workers.”

“In cleaning, Spotless undercuts their competitors, to the point that it is almost impossible for anyone in the industry to make a profit. The company’s primary response to margin pressures has been to squeeze their workers. This is why there are investigations by the FWO about sham contracting, a case against them at Federal Court about misuse of Individual Flexibility Agreements and reports of underpayment.”

“Spotless is choosing a low-cost, low quality model, which is only going to damage them—and their reputation—in the long run,” Ms Tarrant said. “Clients want quality and sustainability, but Spotless is going against that trend. They’re stuck in a race to the bottom that isn’t delivering for the cleaning industry. They’re cutting costs and cutting corners, which is hurting their clients, investors and employees.”

“One of the ramifications of these poor business practices is that, eventually, clients get fed up Spotless and will end up losing market share.”

“We believe this model of contracting poses significant risks to the company. It has the potential to damage the long-term viability of Spotless’ operations and jeopardise its status as a responsible contractor.”

“Spotless employees want to ensure that they are working for a company that aims to do its best for clients and investors, and the public at large. Spotless’ poor business practices prove are a detriment to society.”

“If Spotless doesn’t listen to their clients, investors and employees and take a stand alongside the rest of the cleaning industry for better practices, workers will be forced to take a stand themselves.”

Media contact: Sarah Hoque, Media Officer, 0425 242 691