Australia: Wesfarmers to pay $4.8m in backpay to workers
"Wesfarmers workers win $4.8m in backpay", 7 February 2023
Wesfarmers will back pay $4.8m to more than 3400 current and former employees of its industrial and safety division and make a $100,000 contrition payment to the federal government under an agreement with the Fair Work Ombudsman.
The underpayments over a decade included penalty rates, annual leave and overtime entitlements.
The back payments will be made by seven subsidiaries of Wesfarmers Industrial and Safety, which operate three main businesses: Blackwoods, the Workwear Group and Coregas.
The businesses supply industrial and safety products and services, work clothing and uniforms, industrial gases and installations, and environmental and consulting services.
WIS reported underpayment issues by its entities and two now-former subsidiaries, Greencap and Trimevac in 2019 after implementing a new payroll system across the corporate group.
WIS said then that its “preliminary estimate” of the total amount unpaid since 2010, including interest, was about $15m, of which it said almost half related to superannuation on loadings and allowances. It estimated 2000 current employees and 4000 former staff were affected.
[...]