WIS subsidiaries to pay over $4.8 million in back wages
Nine subsidiary companies of Wesfarmers Industrial and Safety (WIS) are facing the consequences of underpaying over 3,400 employees by entering into an enforceable undertaking with the Fair Work Ombudsman (FWO).
Seven current and two former subsidiaries of Wesfarmers Industrial and Safety Pty Ltd (WIS) are set to pay over $4.8 million in back wages to over 3,400 employees after entering into an enforceable undertaking with the Fair Work Ombudsman (FWO). The seven current entities found to have underpaid employees are J. Blackwood & Son Pty Ltd, Protector Alsafe Pty Ltd, Bullivants Pty Ltd, The Workwear Group Pty Ltd, Coregas Pty Ltd, Blacksmith Jacks Pty Ltd, Lawvale Pty Ltd, while the two now former WIS subsidiaries are Greencap Pty Ltd and Trimevac Pty Ltd.
WIS's subsidiaries must back-pay the underpaid employees $4,836,036 plus $246,779 and the total interest of $1,476,827 by February 2023, as part of the enforceable undertaking. The average underpayment was $1,392, with individual underpayments up to $38,362.
The FWO investigation into the subsidiaries was triggered by WIS's self-report of underpayment issues in October 2019 during the implementation of a new payroll system across the corporate group. The broader review found that the payroll system errors adopted by WIS resulted in the underpayment of over 3,400 current and former full-time, part-time, and casual employees between January 2010 and June 2020. The entitlements underpaid include base and overtime penalty rates, annual leave and casual loadings, vehicle allowance, and termination payments.
The enforceable undertaking also requires each WIS entity to make a $100,000 contrition payment to the Commonwealth’s Consolidated Revenue Fund and display notices that apologize for the contraventions across Facebook pages, public websites, and intranets.
According to Fair Work Ombudsman Sandra Parker, the WIS entities have demonstrated a commitment to rectifying the underpayments and changing their practices, making an enforceable undertaking the appropriate action to take. “Under the enforceable undertaking, the WIS entities have committed to implementing stringent measures to improve compliance and protect the rights of its workforce,†she said. “These measures include commissioning, at the companies’ own cost, independent annual audit checks to check their compliance with workplace laws during the next two years.â€
The underpaid workers were located in cities across the country, including Melbourne, Sydney, Wollongong, Newcastle, Mackay, Canberra, Perth, and Darwin, and worked in a variety of roles such as retail and customer service, laboratory technology, transport and logistics, and more.
“This matter demonstrates how important it is for employers to identify and fix non-compliance in their processes, including the continued use of out-of-date and unsupported software systems and the incorrect interpretation and creation of pay rules,†said Parker.
