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THE Fair Work Ombudsman is investigating employment practices for contract workers at Hazeldene's chicken farm in Lockwood.
An ombudsman spokesman said the investigation followed allegations made in media reports and there had been no complaints or requests for assistance from any Hazeldene's employee.
Member for Bendigo Lisa Chesters and the National Union of Workers have alleged contract workers on 417 working holiday visas, 457 visas and international students at the site are paid "per piece" instead of hourly rates.
They have also alleged workers are paid below award rates, receive cash-in-hand payments and have expanded beyond the boning facility into other areas of the factory.
Ms Chesters is expected to formally raise the claims in federal parliament on Wednesday.
Hazeldene's has denied all claims stating the company was "open and transparent" with all employees.
The company said it stood by a relationship with the two Melbourne-based contract companies who provide workers to the site.
"Hazeldene's maintains formal schedule of rates contracts with each Proprietary Limited contract company," the company stated.
"Hazeldene's is not aware of any on-site or off-site cash transactions. The NUW has made allegations, but Hazeldene's has received no evidence of on-site cash payments occurring.
"Hazeldene's pays contract companies on provision of weekly tax invoices."
The company confirmed it had offered to hire contract staff directly.
"Hazeldene's has extended an offer to the contract companies for their staff to be engaged by Hazeldene's directly. This remains an open offer," the statement read.
Ms Chesters plans use an adjournment debate in Federal Parliament on Wednesday to raise her concerns about the employment practices, to pressure the government for an upcoming Senate Inquiry.
The Bendigo Advertiser met with five Hazeldene's employees last week, who raised their concerns with employment practices at the Lockwood site.
They also made allegations of seeing cash payments made to contract staff, and spoke of Hazeldene's relationship with the contract companies, known as individuals named "Jimmy" and "Wan".
They alleged the contractors receive up to $5000 per week to supply the workers, while charging them $100 per week to catch the bus from four locations in Melbourne.
When asked what they would like to see happen at Hazeldene's, the five staff members had the same requests.
"Put them all on full-time, treat them equally," one staff member said.
"They've been told they can ask to be put on full-time, but none of them will ask out of fear for losing their jobs.
"The way they are treated, it's just not fair. I would hate it if it was me."
The employees also alleged Hazeldene's uses "punishment shifts" to discipline staff seen to be taking too many days off.
The shifts involve starting workers at times designed to make them receive less pay, and moving them to new areas in the factory under different supervision.
In its statement, Hazeldene's denied the practice is used as an "intimidation" tactic.
"Hazeldene's has to program process flows for in excess of 800 products each day," the statement read.
"To facilitate this from time to time employees may be moved due to reliability issues to ensure appropriate and safe staffing levels are maintained in relevant areas to meet production needs."