Report reveals ‘systemic and cultural failure’ by the ABC over staff underpayments

The ABC’s underpayment of up to 2500 staff breached its enterprise agreement and the Fair Work Act, a report has found.

Findings by the CPSU report include that ABC leadership was alerted to the underpayments on multiple occasions by staff and union and failed to act Picture: AAP

The ABC’s underpayment of up to 2500 staff breached its enterprise agreement and the Fair Work Act, a report by the Community and Public Sector Union (CPSU) has found.

The report, released to union members on Sunday afternoon and obtained by The Australian, found the ABC had ten “significant” opportunities to review casual employee payments over the last six years, including during enterprise bargaining back in 2016.

It comes days after the ABC’s annual report revealed the public broadcaster had set aside $22.98 million for historical salary, wages and superannuation entitlements for casuals, and 10 months after the underpayments of casual staff across six years were first revealed.

The CPSU’s report, which has 12 findings and 16 recommendations following a series of interviews with current and former ABC casual employees, proposed ABC’s leadership team should address “internal cultural problems” that caused staff to be underpaid.

“The scope of the ABC’s casual underpayment review signifies a systemic and cultural failure by the ABC to meet its legal obligations as an employer, and its legal obligations as a publicly funded statutory authority,” the report said.

Findings by the CPSU include that ABC leadership was alerted to the underpayments on multiple occasions by staff and the union, that it had failed to conduct routine checks it was complying with legal obligations and had failed to respond to ten events raised by the CPSU, which should have caused further investigation into the way staff were being paid.

“These opportunities included when new ABC Enterprise Agreements came into effect, when ABC casual loadings were increased from 20 to 25%, and most significantly in April 2016 when the CPSU and the Media Entertainment and Arts Alliance (MEAA) formally raised concerns about casual underpayment in ABC enterprise bargaining and a jointly endorsed union log of claims,” the report said.

“Beyond these formal opportunities, the CPSU has also identified that over the last six years there have been countless conversations between ABC casual employees and their managers about pay in which the ABC did not identify or address the issue.”

It also found the ABC did not pay shift penalties for weekends and public holidays, in line with the enterprise agreement, and had failed to pay the full 25 per cent casual leave loading increase when it came into effect three years ago.

The CPSU said the failure to properly pay the employees is an offence under the Fair Work Act, with a maximum civil penalty of $12,600 for an individual and $63,000 for a corporation.

To remedy the findings, the CPSU has proposed better training of ABC management, and a request to ABC leadership to pay attention to the “tone it sets” with casual employees.

It also requests the ABC stop using loaded rates payment for casuals, a report from the director of ABC People and Culture once a year on the status of ABC casual employment, the implementation of a casual inquiry hotline for the employees and the designation of an officer in ABC People and Culture to handle casual engagements.

The CPSU also calls for the public release of the ABC’s findings into what has occurred.

“To date none of the ABC’s current or former casual employees have been paid the money they are owed, nor has the ABC’s leadership been transparent or accountable for the work that is being done in this space,” the report said.

“The ABC’s leadership must explain to the ABC workforce and the broader community how this happened, who is responsible, and what changes it will make to ensure that this does not happen again.”

The entails come as the broadcaster reviews its television, radio and online operations after the federal govern­ment froze its annual funding for three years. It will cost the organisation $84m — $15m in the current financial year and $28m and $41m in the next two years.

“The loss of ABC content now seems inevitable. ABC casual employees will be paid the money they are owed but the cost to the ABC’s reputation remains to be seen,” the report concluded.

“The ABC’s leaders must be accountable for their negligence and explain how this happened. They must also be fully transparent about what changes they have put in place to ensure this never happens again.”

ABC Senate Estimates commence Tuesday.

A statement from the ABC said a number of the findings “have already been addressed” through the company’s internal review.

“In November 2018, when the ABC first became aware that some casual employees may have been underpaid, we undertook to proactively address the matter, including advising the Fair Work Ombudsman of the situation,” a spokesman said.

But the ABC denied that a “specific concern” had been raised by the unions about casuals being underpaid in 2016 industrial negotiations.

“The ABC has always sought to communicate regularly and openly with the unions on this matter. If there had been such an allegation made, the ABC would have investigated it, as it did in November 2018.”

The ABC said it was in “regular contact” with affected staff and would soon consult them individually about back payments.