THE NEWS WRAP: Australian shares slump to a seven-month low amid recession fears

Australian shares slumped to a seven-month low yesterday, with fears over another global recession wiping $22.7 billion in value off the market.

By the close, the ASX 200 index slipped by 1.9% to 3,985 and the All Ordinaries dropped 2% to 4,033.

The tumble followed investor concern over poor economic data from the US, China and Europe.

Coles accused over underpaid workers

Coles has been “wilfully blind” to the issue of unpaid workers in its supermarkets, according to the federal workplace watchdog.

The Fair Work Ombudsman has launched legal action against Coles on behalf of six trolley collectors in South Australia, who were allegedly underpaid by $150,000. Coles denies the charge.

Australians support overseas labour: Poll

The majority of Australians support the introduction of overseas workers to plug skills shortages, a new survey has found.

The poll, conducted by the Lowy Institute, showed that 62% of people support the use of temporary skilled migration when businesses can’t find local staff. 

Overnight

The Australian dollar was up slightly, to US97.28 cents.