ABC makes record apology payment for underpaying 1900 workers

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The ABC has made the largest apology payment of any business to date after underpaying 1900 of its workers a total of $12 million. In an agreement with the wages watchdog, the public broadcaster agreed to a contrition payment of $600,000 for the underpayments which range from $7 to $180,000 for individual workers. The wage problems which occurred between 2012 and February 2019 came to light when the ABC realised that it had not paid some casual workers their correct entitlements triggering an investigation by the Fair Work Ombudsman. Fair Work ombudsman Sandra Parker said, the ABC was improving its wage practices including by committing to audits from a third party.

Ms Parker said, while the extent and duration of the underpayments are disappointing, the [ombudsman] acknowledges the ABC’s remediation efforts, such as its comprehensive back payment initiatives and its commitment to avoid a repeat of this failure.

The $600,000 penalty is the highest contrition payment agreed between the Fair Work Ombudsman and an employer. But the total repayment $11.9 million is considerably smaller than the $22.98 million the ABC set aside in last year's annual report for historical salary, wages and superannuation entitlements. The ABC is meanwhile preparing to axe more than 200 jobs as part of an overhaul of its business structure that is occurring because of a funding freeze. The freeze is expected to cost the broadcaster $84 million over three years. An ABC spokesman said, the repayments and fine would not impact on the process currently underway.

The spokesman said, as previously stated, the ABC has consulted with the Fair Work Ombudsman to reach an agreement on the pay issue and has signed an Enforceable Undertaking. The ABC has apologised to staff for this unintentional error. A contrition payment will be made as a result of the negotiations with the Fair Work Ombudsman. This payment has been budgeted in the current financial year and will have no impact on the requirement to find ongoing savings.

Industrial Relations Minister Christian Porter said , the undertaking between the ombudsman and the ABC was a welcome step. The underpayments of more than 1,900 employees totalling more than $12 million by an organisation as large as the ABC is a reminder to all employers whether they be public or private sector employers of the need to pay your staff correctly. As I have said many times before, the first priority of any employer must be to pay their staff properly. Employers rely on their staff as much as employees rely on their employer. The Morrison Government remains committed to taking further action to stamp out wage underpayments, including legislation to criminalise the most serious. This issue will be considered by one of the working groups established as part of the post-COVID industrial relations reform process.

CPSU ABC section secretary Sinddy Ealy said, the union looked forward to working with the ABC on its employment practices. It’s a regrettable situation but a great outcome for the health of the ABC and its workers. CPSU members are pleased the ABC will be supported to improve its employment practices with external oversight.