In the past two years, a spate of underpayment cases in the retail industry has thrown industrial relations policies in the limelight.
Woolworths, which owns apparel chain Big W, topped the list last year with staff underpayment estimates of $315 million.
The cases, alongside broader IR developments, have led to one of the most controversial Australian workplace reforms in history – set to be debated in early 2021.
The Reform package was tabled to Parliament in December last year, and has been referred to the Education and Employment Legislation Committee for inquiry.
It proposes a number of significant changes to workplace laws, including resolving recent confusion around the classification and payment of casual employees and enhancing the regime for resolving underpayment claims by introducing tougher civil and criminal penalties.
The passage of the Bill has divided retail associations, political groups and unions.
While the industry sits back and awaits the results, this is how retailers are dealing with the issue.
In Wesfarmers’ annual report, chairman Michael Chaney said the company is committed to resolving underpayments across its divisions.
“This issue has affected numerous small, medium and large employers nationally this year and illustrates the challenges all companies face under Australia’s extremely complex industrial relations system.
“As an example, in our Industrial and Safety division, we were dealing with over 50 separate awards and agreements in trying to identify where errors might have occurred.
“I believe we acted swiftly and in accordance with the principles espoused above to identify the errors, resolved to compensate affected current and former team members extending over 10 years rather than the required six, added interest to payments or superannuation shortfalls and we are implementing fixes to overcome any systems shortcomings to prevent any continuation of the problem.”
Super Retail Group CEO Anthony Heraghty said its own remediation program, including all relevant back payments, is expected to conclude in fiscal 2021.
“In FY20, 6,478 individual investigations were completed with $27 million, including interest and superannuation, paid to 2,490 former and current team members.
“As at the end of FY20, this brought the total amount paid to $31.5 million, including interest and superannuation, to 3,458 team members.”
Meanwhile, Michael Hill Jeweller chair Emma Hill noted a change during COVID-19 lockdowns.
“Given culture has always been important to us, we were very disappointed to discover the misapplication in Australia of the General Retail Industry Award.
“The company has largely remediated existing team member payments.
“However, during the COVID-19 closure period, the remediation program for former teams was paused, noting that interest will be paid on all amounts owing until this program of work is completed.”
Submissions to the inquiry about this Bill have closed.
The Education and Employment Legislation Committee will then report on the inquiry findings by 12 March 2021.