[Australia] Urban Utilities workers underpaid by $21.3m due to payroll error

In Australia, Urban Utilities - one of the country’s largest water distributors - has confirmed that it underpaid workers by $21.3 million over a seven-year period, ABC News reports.

Urban Utilities supplies drinking, recycled water and sewerage services to more than 1.6 million people in south-east Queensland.

Paul Arnold - Urban Utilities chief executive - said that while reviewing historical issues, the water distributor-retailer discovered it had "incorrectly" and "unintentionally" underpaid 1,525 of its former and current workers.

In a statement, he said, "The estimated overall value of the underpayments for our people and former employees is $21.3 million, plus any superannuation and interest owed for the period of 1 July 2015, to 30 June 2023."

The council-owned company reportedly notified employees in August 2022 that it was investigating the underpayments and working to resolve them.

"Our review has identified the issues were related to the complex interpretation of Enterprise Agreements, the award and employment contracts, and their application into rostering and time sheet-keeping processes, systems and practices," Mr Arnold said.

He added that Urban Utilities had paid the affected employees the difference in pay, with interest, and had begun working to pay former employees impacted by the error.

Neil Henderson - the Service Union's secretary - said affected members were happy they were being back paid, however, he stated that "it's money they should've had all along".

"We are certainly happy that Urban Utilities is putting some effort into identifying where the underpayments have occurred and to rectify them, but of course they shouldn't have happened in the first place," he said.

"We're very sorry this has happened," Mr Arnold said.

“To ensure transparency, we engaged an independent company to assist us in analysing historical data and calculating any differences in how we have paid our people versus their entitlements."

Urban Utilities has already self-reported the issue to the Fair Work Ombudsman and reportedly said it was providing regular updates to relevant unions.

Source: ABC News

(Quotes via original reporting)

In Australia, Urban Utilities - one of the country’s largest water distributors - has confirmed that it underpaid workers by $21.3 million over a seven-year period, ABC News reports.

Urban Utilities supplies drinking, recycled water and sewerage services to more than 1.6 million people in south-east Queensland.

Paul Arnold - Urban Utilities chief executive - said that while reviewing historical issues, the water distributor-retailer discovered it had "incorrectly" and "unintentionally" underpaid 1,525 of its former and current workers.

In a statement, he said, "The estimated overall value of the underpayments for our people and former employees is $21.3 million, plus any superannuation and interest owed for the period of 1 July 2015, to 30 June 2023."

The council-owned company reportedly notified employees in August 2022 that it was investigating the underpayments and working to resolve them.

"Our review has identified the issues were related to the complex interpretation of Enterprise Agreements, the award and employment contracts, and their application into rostering and time sheet-keeping processes, systems and practices," Mr Arnold said.

He added that Urban Utilities had paid the affected employees the difference in pay, with interest, and had begun working to pay former employees impacted by the error.

Neil Henderson - the Service Union's secretary - said affected members were happy they were being back paid, however, he stated that "it's money they should've had all along".

"We are certainly happy that Urban Utilities is putting some effort into identifying where the underpayments have occurred and to rectify them, but of course they shouldn't have happened in the first place," he said.

"We're very sorry this has happened," Mr Arnold said.

“To ensure transparency, we engaged an independent company to assist us in analysing historical data and calculating any differences in how we have paid our people versus their entitlements."

Urban Utilities has already self-reported the issue to the Fair Work Ombudsman and reportedly said it was providing regular updates to relevant unions.

Source: ABC News

(Quotes via original reporting)