Country Road Group staff complaints made in December employee survey

Country Road Group staff made formal allegations of improper workplace behaviour by some executives in a staff survey in December, but only now has the scandal surfaced.

Country Road Group executives were given formal details of workplace behaviour as early as December. Picture: AAP

Country Road Group executives received formal details by angry and upset staff of poor workplace behaviour as early as December thanks to an employee survey which detailed some of the allegations of sexual harassment and bullying that has now engulfed the fashion house.

The specially constructed employee pulse survey was handed to select staff who were subjected to a restructure of Country Road Group’s sourcing and supply division. The division was run then by Rachid Maliki and who exited the business in February after allegations of sexual harassment and improper workplace behaviour.

Those allegations and the handling of allegation complaints against former Country Road Group executives are now part of an external investigation commissioned by the retailer’s parent company, South Africa’s Woolworths Holdings. The report has been fast tracked and is due out soon.

As part of that external investigation some staff were sent to a law firm’s offices in the Melbourne CBD to discuss their concerns and provide any evidence they might have.

On Tuesday the South African boss of Woolworths Holdings, Roy Bagattini, directed Country Road Group staff in Australia to refrain from commenting to the press about the sexual harassment and bullying allegations, saying the media storm around the retailer was “unsettling”.

In an email sent to staff on Tuesday Mr Bagattini told them to not approach the media to comment on the scandal, and he also confirmed that the externally led investigation into the way Country Road Group handled allegations of sexual harassment and bullying would soon be complete – and many weeks earlier than first promised.

Meanwhile, a source close to the fashion stable has told The Australian that Mr Maliki’s integration and restructure of the sourcing and supply arm of Country Road Group in June triggered widespread anger among affected staff, heavier workloads and some redundancies.

By December the disquiet and smouldering anger generated by the restructure was so palpable that Country Road Group, whose brands include Country Road, Trenery, Witchery, Mimco and Politix, issued the employee survey to take on feedback. The staff survey was completed just before Christmas.

While many of the answers to the survey required a simple “yes” or “no” in the space provided, for “further comments” Country Road Group staff took the opportunity to express their anger over a deteriorating workplace culture.

The improper workplace allegations have centred around two former executives.

Some of the language used was highly colourful and inflammatory, but also it was used by some employees to formally raise allegations of sexual harassment and bullying.

Despite initial complaints about worsening workplace behaviour raised in October, it was in this December survey that allegations against specific executives were made, an insider told The Australian.

On Monday the Australian revealed a sexual harassment and workplace scandal had erupted within fashion house Country Road Group, seeing two highly placed executives suddenly depart and the global boss flying to Australia to address staff to announce an external investigation into the handling of complaints at the retailer’s Melbourne headquarters.

One of those executives was Mr Maliki, who was brought in from outback outfitter RM Williams as Country Road Group’s chief supply chain officer. Following allegations of sexual harassment and bullying it is believed that Mr Maliki was given two weeks leave as an investigation was mounted. He later exited the business suddenly on February 19 after only 19 months in the role.

Rachid Maliki

Mehmed Mustafic

There were also allegations of workplace bullying against a second RM Williams executive brought into Country Road Group, Mehmed Mustafic, around his alleged treatment of some staff at the fashion house’s Burnley head office.

These allegations did not include sexual harassment or sexually inappropriate conduct. Mr Mustafic exited the business on March 21 after serving for only 10 months in the role as general manager of sourcing and product development.

He had previously spent 14 years at country clothing outfitter RM Williams, and Mr Maliki worked as an executive at RM Williams for six years. Both were brought across to Country Road Group by CEO Raju Vuppalapati, the former boss of RM Williams, who joined Country Road as its boss in mid 2021.

There have been no official findings against Mr Maliki or Mr Mustafic. Both were contacted for comment by The Australian. It is not known whether Mr Maliki or Mr Mustafic will be given the opportunity to defend themselves in response to the allegations in the review commissioned by Country Road Group.

The investigation, handled by external law firms, is near completion and in his email to staff on Tuesday Woolworths Holdings boss Mr Bagattini confirmed it would soon be released.

“I can now inform you that the independent investigation that Woolworths Holdings commissioned in April is almost complete, and we will be in a position to share the outcomes with you shortly,” Mr Bagattini said.

Staff had complained at feeling unsafe, with this confirmed in an email from the fashion retailer’s HR boss, who directly addressed the crisis and mentioned allegations of sexual harassment. Onsite counselling was also offered to Country Road Group employees, it was confirmed in an internal company email obtained by The Australian.

As the scandal hit the headlines on Monday, Mr Bagattini also implored his local staff on Tuesday not to approach the press.

“Separately, you are no doubt aware that some of our team members have pre-emptively engaged with the media and this has resulted in various speculative news reports,” he said in the staff email.

“The external attention on our company, through these news articles, can be unsettling and comes at a difficult time for yourselves but also for us as a company.

“I would again urge everyone to allow the process to conclude and allow for the facts to inform the outcome.”

In the staff email on Tuesday he also reminded staff that counselling support was available through its employee assistance program.

Country Road Group was contacted but declined to comment as the investigation was ongoing.