The postal service raised the alarm after identifying issues in a multi-million-dollar cleaning agreement administered by JLL. Cleaners hired through multiple layers of subcontracting were reportedly paid below legal wage requirements. This discovery has triggered a broader review into how JLL monitors its suppliers.
JLL manages Australia Post’s extensive property portfolio, which includes cleaning services provided by external contractors. One part of the work was awarded to SKG Cleaning Services, which legally subcontracted it to another company. However, this secondary subcontractor is said to have further handed off the tasks to yet another provider. Workers employed by this third party were allegedly underpaid and delivered lower-quality services across Australia Post sites.
An internal review by Australia Post revealed that cleaners were hired for fewer hours than agreed, resulting in proportionally lower pay. This meant both the workers and Australia Post were disadvantaged. The contract was intended to deliver large-scale services while ensuring fair worker treatment. Instead, the subcontracting practices appear to have prioritised cost-cutting in breach of the original obligations. As a publicly funded organisation under financial strain, Australia Post is reportedly concerned about the lack of effective oversight.
JLL, which has previously undergone internal reforms following unrelated issues, is now facing renewed questions about its contractor management. The situation presents reputational risks and could affect its future dealings with key clients such as Australia Post. Both companies maintain that they are committed to ethical standards and routine audits, although this case may prompt changes in how such contractual arrangements are managed and reviewed.
