Qantas admits to underpaying hundreds of workers up to $7.1MILLION over the past decade (while Australia’s richest boss Alan Joyce took home $24m last year)
- Qantas underpaid hundreds of workers $7.1million over the past eight years
- The airline entered an enforceable undertaking with the Fair Work Ombudsman
- The error impacts about 1,000 current and former Qantas staff members
Qantas have underpaid hundreds of workers $7.1million over the past eight years.
The national carrier on Friday said they entered an enforceable undertaking with the Fair Work Ombudsman to rectify a misclassification issue.
The error impacts about 1,000 current and former staff members, including more than 600 who were owed $7.1 million in backpay.
In February 2019, Qantas self-reported they incorrectly paid some of their marketing and administrative staff in line with the terms of individual contracts of employment, rather than the relevant enterprise agreements that applied.
The mistake meant employees did not receive the minimum terms of the relevant enterprise agreements, including minimum wages, overtime, annual leave entitlements and superannuation.
Qantas chief executive Alan Joyce – the richest CEO in Australia – earned almost $24million during the 2018 financial year.
Qantas have underpaid hundreds of workers $7.1million over the past eight years (stock image)
The error – which also affected head office staff in corporate and administration roles – lead to underpayments and record-keeping breaches.
The airline have now paid $7.1m to 638 employees underpaid between June 2011 and June 2019.
An interest rate six per cent above the RBA cash rate has been used on all back payments and an additional payment of $1,000 to affected workers, at a total of $2 million.
Fair Work Ombudsman Sandra Parker: ‘Qantas has come forward and admitted to breaching the Fair Work Act for several years and significantly underpaying hundreds of its employees several million dollars.’
‘The Court-Enforceable Undertaking creates a robust process where an independent expert will verify that employee back payments are correctly calculated and paid by Qantas.
‘Three further pay audits will also be conducted by an independent auditior, which will benefit Qantas’ current and future employees.
‘This independent analysis will reduce the burden on the Fair Work Ombudsman, and subsequent cost to the taxpayer, for ensuring that Qantas back pays its staff correctly.’
Qantas Group Executive Rob Marcolina apologised to the employees caught up in the misclassification issue.
The national carrier on Friday said they entered an enforceable undertaking with the Fair Work Ombudsman to rectify a misclassification issue. Pictured: Qantas Group CEO Alan Joyce
‘We take our obligations as an employer very seriously and have worked with the Australian Services Union and Fair Work Ombudsman to fix this.
‘Since we first reported this issue in February last year, we’ve put a lot of resources into calculating the full impact, fixing it for those affected and putting systems in place to make sure it doesn’t happen again.
‘We realise this type of conduct by companies doesn’t meet community expectations, and it doesn’t meet our own commitment to our people or compliance.’
In Qantas’ 2019 Annual Report, the airline disclosed the misclassification issue had contributed to a reduction in Executive Management bonuses for the year.