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AUSTRALIA POST has axed its contracts with three courier firms following the recent driver underpayment scandal.

Victoria based Aus Lanka Express Pty Ltd, Harmony Xova Pty Ltd and KLMK Pty Ltd were given 90 days notice of their contract termination.

The scandal involved drivers, many of whom were foreign students, being paid well below the minimum wage and not receiving sickness or holiday pay.

An Australia Post spokesperson said:

Australia Post has terminated agreements with three Victorian-based principal delivery contractors, who failed to meet compliance standards. This action should serve as a clear warning that if a contractor is not meeting the high standards expected of them by Australia Post, our customers and the community, we will act swiftly

Approximately 70 per cent of parcels are delivered by contractors for Australia Post.

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PHC Magazine

PHC Magazine