To make sure you never miss out on your favourite NEW stories, we're happy to send you some reminders

Click 'OK' then 'Allow' to enable notifications

Target Found To Have Underpaid Staff $9 Million In Australia

Target Found To Have Underpaid Staff $9 Million In Australia

The company says the issue was a result of a 'payroll error'

Stewart Perrie

Stewart Perrie

Target has become the latest company in Australia to be found to have short changed its staff.

Wesfarmers, the company which owns Target in Australia, has revealed around $9 million wasn't paid out to workers.

The company says the issue was a result of a 'payroll error'.

Chief Executive Rob Scott said: "Immediate steps are being taken to rectify identified issues, notify and repay affected team members, including interest, and ensure accuracy in the future through a robust program of auditing and monitoring."

JeepersMedia (Creative Commons)

This takes staff underpayments for Wesfarmers to $30.1 million after similar issues were found at Bunnings, and its Industrials companies, Blackwoods, Workwear Group, Coregas and Greencap.

The company says it hasn't found any issues with its other companies Kmart and Officeworks.

It comes about 24 hours after supermarket giant Coles announced it had underpaid workers by $20m over six years.

In a report, Coles revealed that one percent, roughly 1,150, of its team members had been underpaid due to differences between their remuneration and the General Retail Industry Award. The majority of those affected are store managers.

Chief executive Steven Cain said: "We are working at pace with a team of external experts to finalise our review. Once completed we will contact all affected team members, both current and former, to remediate any identified differences in full.

"Coles has implemented steps to improve our systems and processes."

Darren.notley (Creative Commons)

According to the Sydney Morning Herald, the full scale of the underpayment might be higher than $20m. The company reported a $725m surplus in earnings last year thanks to a strong Christmas period.

Its major rival, Woolworths, wasn't immune to the same issue, with the company revealing last year that workers missed out on up to $300m in wages.

Woolworths undertook a review of its worker's salaries just before it introduced the newest enterprise bargaining agreement.

During this review the company noticed there was a difference between what staffers were being paid as per their salary, versus what they were entitled to be paid under the General Retail Industry Award.

As many as 5,700 staff had missed out on hundreds of millions of dollars.

Woolworths/YouTube

"The review has found the number of hours worked, and when they were worked, were not adequately factored into the individual salary settings for some salaried store team members," the company said in a statement.

"Affected current and former salaried team members will receive their full entitlements, including back payments with interest and superannuation contributions, as soon as possible.

"Interim back payments will be made before Christmas to affected Supermarkets and Metro salaried store team members for the two years reviewed to date (September 2017 - August 2019)."

The payments go as far back as 2010 and the amount is between $200m to $300m.

Featured Image Credit: PA

Topics: News, Australia