25-06-2025
Mundella workers say they're owed superannuation as administrators step in
It took just 18 months for two well-known dairy companies in southern Western Australia to come crashing down into administration after a local family took them over from Chinese ownership.
When lead proprietor Hayden Russell took over Mundella Foods and Margaret River Dairy Co it was hailed as a coup for the parochial WA dairy industry.
However, some of the employees are now claiming they are missing thousands of dollars in superannuation.
Mr Russell reportedly said the financial issues arose due to "short milk supply".
Suppliers and employees have told the ABC there was deeper dysfunction at play.
Former and current staff describe a "toxic" workplace, "cutting corners", and delays or failure to pay some bills and staff superannuation.
The environmental regulator is also investigating Mundella Foods amid reports of alleged dumping of wastewater containing commercial cleaning chemicals at Mundella's yoghurt factory.
The ABC has repeatedly attempted to contact Mr Russell for comment and was told via text that it was "business as usual".
Mr Russell's ambitions in WA's micro-dairy sector began in 2022 when he purchased The Cheeky Cow Dairy, branding the company as "wanting dairy done differently, dairy done better".
In late 2023, the Busselton dairy farmer expanded by purchasing yoghurt producer, Mundella Foods, and Margaret River Dairy Co. from Chinese food giant, Bright Foods Group.
Damien Maring worked as a pasteuriser at Mundella's yoghurt factory at Mundijong, on the outskirts of Perth, from 2022 before quitting in 2024.
Mr Maring said the factory began to experience regular interruptions to production.
"I had to stop making things in the morning because they had run out of buckets, run out of tubs, run out of labels because they just hadn't been ordered," he said.
The Department of Water and Environmental Regulations has told the ABC it is actively investigating Mundella Foods.
The ABC understands the regulator's investigation was in response to reports of alleged dumping of wastewater contaminated with commercial cleaning chemicals used to disinfect pasteurising equipment.
A photo provided to the ABC appears to show water, said to be the alleged wastewater, being released in a nearby paddock.
Along with the "toxic" workplace culture, several staff have said they were still owed superannuation.
Mr Maring said he was still owed about $2,500 in superannuation, which was yet to be paid by the company in the 2024-'25 financial year.
Former maintenance technician Christopher Hobson claims he is also missing about $5,000 in superannuation from Mundella Foods.
"I've emailed them maybe three or four times since I left, and now I've proceeded to the ATO to follow up," he said.
"I don't think people go to work to not get paid super."
Mr Hobson worked at the yoghurt factory from June until his resignation in November last year.
He said it was the "worst" workplace culture he had experienced.
"I could see something coming," Mr Hobson said.
"I didn't think it would actually last this long."
The Australian Taxation Office told the ABC it was unable to comment due to obligations under taxpayer confidentiality laws.
Administrator of the dairy companies, Mackay Goodwin, is still keeping the business operational.
The administration is yet to confirm the number of creditors or how much they are owed.
"The administrators are still receiving claims and, importantly, assessing the direction of the business," a Mackay Goodwin spokesperson said in a statement.
"It would be difficult to state certain figures in isolation and out of context [due to commercial sensitivities]."
Suppliers claim previous, repeated attempts to contact Mr Russell and management about outstanding bills had been met with silence.
Redgate Contracting owner Mick Kelly is among those who say they are still owed money.
Mr Kelly said he was still owed about $40,000 for a range of services carried out at Mr Russell's dairy farm in Busselton early last year.
"That was probably six months ago and nothing."
The deteriorating situation at Mundella Foods has saddened employees, who say they had taken pride in building a beloved dairy brand, originally established in 1974.
"I hate that," Mr Maring said.
"It was the best place ever."
The administrator said it was obligated to "gather and investigate" claims of unpaid bills and superannuation, and would report back to creditors in several weeks.
