Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    • News

  • Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    • News

  • EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    • News

  • RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    • News

  • BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    • News

  • AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    • News

  • Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    • News

  • Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    • News

  • FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    • News

  • Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    • News

Woolworths wage rort bill now upwards of $500 million

  • In News
  • February 23, 2022
  • Jack Cornips
Woolworths wage rort bill now upwards of $500 million

One of Australia’s largest supermarket chains, Woolworths Group (ASX: WOW), has admitted that staff underpayments have accumulated over half a billion dollars following their ‘end-to-end payroll review’. It may not be the end of it though, as they warn more discrepancies may be found. 

To assure that their staff and employees are receiving their rightful salary correctly, the Group began an investigation early last year after a class-action lawsuit was brought against them in November 2019 for underpaying thousands of workers a total of $427 million. Adero Law firm filed the case on behalf of Woolworths staff and employees, including staff from chains like Big W, Dan Murphy’s and BWS.

The investigation announced preliminary findings in the Company’s first-half report released today. Up to now, the inquiry has found underpayments eclipsing $144 million, which is related to the hourly pay cycle when a staff member is to be paid overtime rates. This combined with the $427 million in underpayments related to salaried workers, the total cost of the wage theft has inflated to $571 million. 

Woolworths Group CEO, Brad Banducci, said, “We have said from the outset that we would do the right thing by our team and we are being thorough in our end-to-end payroll review. We are disappointed to have identified further inadvertent underpayments and unreservedly apologise to our affected team members.”

 The Company made ex-gratia payments of $2,500 plus super benefits to roughly 20,000 salaried employees that had employment between January 2010 and September 2013, with the total stretching to $50 million worth of payments paid during the Christmas period 2021. This reimbursement was separate from the class-action lawsuit, which is on track to be completed by the end of 2022.

Included in the report, the Group’s operating sales were up 8% to $31.9 billion, but earnings before interest and tax was down 11% to $1.38 billion, with net profit declining 6.5% to $795 million. This was attributed to issues from the impact of COVID-19, which caused costs to rise. The Company stated that Omicron led to more robust sales of 5% in the first seven weeks of the second half but declined when Big W stores were closed, and staff had to isolate themselves. The Company’s dividend dropped to 39 cents, which is down from 40 cents a year ago, and will be payable on 13 April. 

The Group also highlighted inflationary pressures, which may lead to even higher grocery prices later this year.

“We expect inflationary pressures to continue to intensify due to industry-wide cost increases. It is inevitable that some prices will increase; however, we will continue to work hard to ensure that we provide our customers with great value and affordable alternatives,” said Mr Banducci. 

Now, although Woolworths has committed wage theft on a national scale, shares have been able to perform exceptionally well. For the duration of 2021, shares began the year at $35.05 and climbed 20% to reach a peak of $42.66 in August. However, shares slid and closed the year off at $37.86. On the back of today’s report, investors saw a 4.3% climb at market open to $36.77 and retraced to $36.02 at the time of writing.

  • About
  • Latest Posts
Jack Cornips
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
  • UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
  • Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
  • Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023
  •  
  •  
  •  
  •  
  • ASX: WOW
  • Woolworths
  • News

Leave a Comment

You must be logged in to post a comment.

  • About
  • Latest Posts
Jack Cornips
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
  • UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
  • Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
  • Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Jack Cornips
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
  • UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
  • Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
  • Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.
Subscribe

Enter your email address below to subscribe to The Sentiment’s weekly newsletter, highlighting the top news, research, opinion and satire articles shaping ASX investor sentiment.

The Sentiment respects your privacy and will not spam you. View our privacy policy here.