Bunnings admits to underpaying part-time staff for eight years
Hardware giant Bunnings has blamed an “inadvertent” error in its payroll system for underpaying part-time workers over the past eight years.
NSW
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Hardware giant Bunnings has admitted underpaying its part-time workers for the past eight years because of an “inadvertent” error in its payroll system.
In the latest wage scandal to strike a major Australian company, the Wesfarmers-owned chain informed employees on Thursday that a flaw had been discovered in the company’s payroll code dating back to 2011.
The blunder short-changed part-time workers in Australian warehouses and smaller format stores who had worked more than their annual contracted hours from the 2011-12 financial year onwards.
Employees have been told most workers are estimated to have been underpaid by less than $200, however the full total has yet to be calculated.
Human resources director Jacqui Coombes said Bunnings, which reported revenues of $12.5 billion in 2018, regretted the error.
“We understand the importance of ensuring our team members are paid everything they are entitled to in full and on time — in this case, while inadvertent, we haven’t, and we are very sorry for that,” Ms Coombes told employees.
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“Bunnings is running a full reconciliation, which will be independently verified, and will make a back payment plus compensation in accordance with Australian Taxation Office requirements”.
The error was discovered by the SDA – the union for retail workers after a a part-time employee raised the problem with them.
Bunnings said it had briefed the Fair Work Ombudsman and notified the Retail Employee Superannuation Trust, and would also contact affected former workers.
“Our focus now is on making sure we complete this reconciliation thoroughly and as quickly as possible, so we can ensure that the superannuation contributions and compensation owing are made to team members’ superannuation funds,” Ms Coombes said.
“We have also fixed the original error to ensure that this does not happen again.”
A Sydney Bunnings worker told The Daily Telegraph he was anxiously waiting to hear how much he was owed.
“I am nearing retirement and I know of people who have already retired and this would have affected their super payout,” he said.
“This error has widespread repercussions because of the length of time it occurred.
“My father-in-law worked there, too, but has since passed away, what happens to his payout?”
Bernie Smith, Secretary of the SDA NSW/ACT says the underpayment of workers is shocking. “Unfortunately it’s become all too common to hear stories of workers not being paid what they deserve.”
The latest wage underpayment comes as the federal government considers jail terms for employers convicted of wage theft.
Last week Sunglass Hut admitted short-changing workers $2.3 million in overtime over a six-year period. It also blamed an “inadvertent” error. The Super Retail Group also underpaid workers $32 million.