Western Power has commenced final back payments to current and former employees who were unintentionally underpaid during their employment.
In 2019 we identified errors in the way we had applied the ‘better off overall’ test to the employment terms of individuals on Individual or Flexibility Agreements (IFAs) against the underpinning conditions of the Australian Services Union Enterprise Agreement (ASU EA).
Impacted individuals and the ASU were advised of the errors and have been kept informed during the complex process. We also self-reported the underpayments to the Fair Work Ombudsman (FWO).
Since then, we’ve reviewed and amended processes where necessary to ensure all employees are paid correctly, and engaged an independent third-party consultancy to assist with the back payment process.
Not all employees were under paid. Our review has identified just over 1,200 current and 1,000 former employees on an IFA have been impacted.
Initial back payments to current employees were made in April 2020 and final payments to relevant current employees, as well as first and final payments to former employees, are scheduled to be complete by 1 October 2020.
Each back payment comprises different elements and amounts depending on an individual’s circumstances and can involve rectifying pay point progression entitlements, superannuation, overtime entitlements, amendments to redundancy payments and associated interest.
We’ve held several briefings with the ASU since August 2019 and we appreciate their input through this process.
We express our regret and apologise to our employees impacted by the unintentional underpayments. We’re focused on fulfilling our responsibility to current and former employees to ensure that they have been fully remunerated for their work with us.