Public service ‘wage theft’ claims mount as jail staff dudded on super
In a fresh case of “wage theft”, shift workers in jails and youth justice centres have been underpaid hundreds of thousands of dollars, and there are fears the rip-off may be more widespread.
National
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Shift workers in state-run prisons have been underpaid hundreds of thousands of dollars in another “wage theft” case that occurred under the Andrews Government’s nose.
The public service pay debacle relates to superannuation payments on allowances earned by up to 2000 employees in the Department of Justice and Department of Health and Human Services — although there are fears the rip-off may be more widespread.
It has also heightened concerns about public sector compliance with worker entitlement laws, following Herald Sun revelations about the National Gallery of Victoria underpaying casual staff.
The prison and youth justice centre underpayments relate to an annual leave allowance for shift workers working weekends, which the Australian Taxation Office says must be treated as superannuable income.
However, it is alleged the departments have not paid super on that allowance.
Victoria’s Solicitor-General has been engaged by Industrial Relations Victoria to assist in the clean-up, with the government declaring “any underpayments identified will be repaid”.
The Community and Public Sector Union called for an IRV inquiry in February, and believes up to $300,000 could be owed.
In a letter to Industrial Relations Minister Tim Pallas this month, CPSU state secretary Karen Batt writes that the government said in September there was “potential inadvertent noncompliance” in departments.
“CPSU regard this matter as falling within the definition of wage theft which your Government has condemned in relation to the conduct of other employers,” she writes.
When contacted by the Herald Sun, Ms Batt said the government should fix the issue given its stance against wage theft.
“It would be nice if the state government walked the walk on workers’ entitlement compliance,” she said.
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The new public sector rip-off comes at a time when the Andrews Government is holding public forums on new wage theft laws aimed at cleaning up the hospitality industry.
A spokeswoman for Mr Pallas said the matter affecting prison shift workers was still being investigated.
“Industrial Relations Victoria and the Victorian Government Solicitor’s Office are investigating superannuation compliance for some public service employees,” she said.
“Any underpayments identified will be repaid and changes will be made to payroll processes as needed.”
Opposition Leader Michael O’Brien said the pay bungle was concerning.
“The government is underpaying its own employees,” he said.
“This is a government that talks a big game about cracking down on rogue employers and that’s a good thing... but when the state government is a rogue employer the state government is underpaying its own workers and Daniel Andrews needs to have a good hard look in the mirror.”
Originally published as Public service ‘wage theft’ claims mount as jail staff dudded on super