![[Australia] Extent of Woolworths wage theft revealed as $276m remains unpaid](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Dalby-Australia-------E-454896091_1200x.jpg?v=1678130918)
In Australia, the extent of wage theft at Woolworths Group has expanded again after the retailer revealed $70 million in additional staff underpayments within its logistics business Primary Connect, The New Daily reports.
Woolworths has previously disclosed more than $600 million in underpayments over recent years. The company said its latest wage theft was uncovered after finishing a broad payroll review of the entire organisation in late 2022.
“Analysis of payroll compliance … has resulted in a further pre-tax charge of $70 million, principally related to Primary Connect, which had not previously been reviewed,” Woolworths said on February 22.
Corporate filings on February 22 reportedly suggest that total worker underpayments uncovered at Woolworths Group since 2019 are now worth more than $750 million. About $276 million has yet to be repaid to its staff.
The timing of the latest revelations is unfortunate for the retailer. Woolworths is preparing a Fair Work Ombudsman (FWO) prosecution at the Federal Court in June.
In a statement, an FWO spokesperson said Woolworths flagged “further potential non-compliance” with them before their February 22 result.
“The Fair Work Ombudsman’s investigation into Woolworths Group Limited is continuing,” the spokesperson said.
“With our investigation ongoing it is not appropriate to comment further at this time.”
The disclosure of new underpayments followed Woolworths posting a hefty $907 million half-year net profit, up 14 per cent on the prior year.
Sales reportedly rose 4 per cent to $33 billion while supermarket inflation came in at 7.7 per cent for the December quarter, up from 7.3 per cent quarterly.
In addition, Woolworths declared an increased dividend of 46 cents per share.
Woolworths owes ‘estimated’ $276 million
Woolworths Group boss Brad Banducci was not asked about the new underpayments in a February 22 briefing, however, he referenced “the same kind of challenges … addressed across the rest of our group”.
Woolworths earlier revealed hundreds of millions worth of staff underpayments due to improper payment of entitlements with its full and part-time workers often being incorrectly paid after they had taken leave.
Details buried in the company’s half-year financial statements reportedly reveal that the new wage theft was “predominately” due to failures to comply with enterprise agreements for hourly paid staff between the 2017 and 2023 “financial reporting periods”.
The newly reported failings are only the latest headline in Woolworths’ wage theft scandal, which began in 2019 when the company revealed about 5700 staff were underpaid between $200 million and $300 million.
The total value of underpayments has reportedly ballooned several times since and is now estimated at more than $750 million.
On February 22, Woolworths said that it repaid $85 million to staff in the six months to December 31. At least $276 million worth of underpaid wages and entitlements remain for the company to remediate.
It said this figure is a “best estimate” of outstanding repayments but was “subject to verification, finalisation of payments … and the conclusion of the group’s engagement with the relevant regulators”.
About $70 million of this figure is due to hourly paid workers, while $206 million is owed to salaried workers. Woolworths says it had paid $477 million in underpaid wages and entitlements to workers to date.
The latest disclosures come as Woolworths prepares to defend two prosecutions over its wage theft scandals in court, one brought by the Fair Work Ombudsman and another class action from Adero Law Firm.
Both cases had a court date for June 2023, according to Woolworths.
The FWO alleges that Woolworths failed to cover worker entitlements for overtime rates, weekend and public holiday penalty rates, meal allowances and annual leave loading under the retail industry award.
It said in 2021 that the “most significant” alleged underpayments related to Woolworths’ failure to pay correct overtime to its salaried managers.
The FWO has reportedly been contacted about the latest underpayments disclosed by Woolworths.
Source: The New Daily
(Links and quotes via original reporting)
In Australia, the extent of wage theft at Woolworths Group has expanded again after the retailer revealed $70 million in additional staff underpayments within its logistics business Primary Connect, The New Daily reports.
Woolworths has previously disclosed more than $600 million in underpayments over recent years. The company said its latest wage theft was uncovered after finishing a broad payroll review of the entire organisation in late 2022.
“Analysis of payroll compliance … has resulted in a further pre-tax charge of $70 million, principally related to Primary Connect, which had not previously been reviewed,” Woolworths said on February 22.
Corporate filings on February 22 reportedly suggest that total worker underpayments uncovered at Woolworths Group since 2019 are now worth more than $750 million. About $276 million has yet to be repaid to its staff.
The timing of the latest revelations is unfortunate for the retailer. Woolworths is preparing a Fair Work Ombudsman (FWO) prosecution at the Federal Court in June.
In a statement, an FWO spokesperson said Woolworths flagged “further potential non-compliance” with them before their February 22 result.
“The Fair Work Ombudsman’s investigation into Woolworths Group Limited is continuing,” the spokesperson said.
“With our investigation ongoing it is not appropriate to comment further at this time.”
The disclosure of new underpayments followed Woolworths posting a hefty $907 million half-year net profit, up 14 per cent on the prior year.
Sales reportedly rose 4 per cent to $33 billion while supermarket inflation came in at 7.7 per cent for the December quarter, up from 7.3 per cent quarterly.
In addition, Woolworths declared an increased dividend of 46 cents per share.
Woolworths owes ‘estimated’ $276 million
Woolworths Group boss Brad Banducci was not asked about the new underpayments in a February 22 briefing, however, he referenced “the same kind of challenges … addressed across the rest of our group”.
Woolworths earlier revealed hundreds of millions worth of staff underpayments due to improper payment of entitlements with its full and part-time workers often being incorrectly paid after they had taken leave.
Details buried in the company’s half-year financial statements reportedly reveal that the new wage theft was “predominately” due to failures to comply with enterprise agreements for hourly paid staff between the 2017 and 2023 “financial reporting periods”.
The newly reported failings are only the latest headline in Woolworths’ wage theft scandal, which began in 2019 when the company revealed about 5700 staff were underpaid between $200 million and $300 million.
The total value of underpayments has reportedly ballooned several times since and is now estimated at more than $750 million.
On February 22, Woolworths said that it repaid $85 million to staff in the six months to December 31. At least $276 million worth of underpaid wages and entitlements remain for the company to remediate.
It said this figure is a “best estimate” of outstanding repayments but was “subject to verification, finalisation of payments … and the conclusion of the group’s engagement with the relevant regulators”.
About $70 million of this figure is due to hourly paid workers, while $206 million is owed to salaried workers. Woolworths says it had paid $477 million in underpaid wages and entitlements to workers to date.
The latest disclosures come as Woolworths prepares to defend two prosecutions over its wage theft scandals in court, one brought by the Fair Work Ombudsman and another class action from Adero Law Firm.
Both cases had a court date for June 2023, according to Woolworths.
The FWO alleges that Woolworths failed to cover worker entitlements for overtime rates, weekend and public holiday penalty rates, meal allowances and annual leave loading under the retail industry award.
It said in 2021 that the “most significant” alleged underpayments related to Woolworths’ failure to pay correct overtime to its salaried managers.
The FWO has reportedly been contacted about the latest underpayments disclosed by Woolworths.
Source: The New Daily
(Links and quotes via original reporting)