Super Retail Group admits to underpaying staff   

ABC News
Updated 21 Aug 2018,



The Super Retail Group, owner of high popular outlets such as Rebel Sports, Supercheap Auto and BCF, is the latest employer to admit to underpaying its staff.

In a note in full year results, the company said it had discovered $7.9 million in underpayments to staff last year.   

"The group has identified that team members involved in store set-up activities should have received additional amounts to the amounts paid," Super Retail said in a brief clarifying note on page 54 of its 2018 annual report.

"A remediation program is underway and will be completed in the next financial period."

Super Retail said starting next month, it would start making back payments, including interest, to affected team members.

"This was a genuine mistake that we deeply regret. This business prides itself on how we treat our team members and we have let them down," Super Retail Group managing director Peter Birtles said in a statement.

"We have taken all possible steps to ensure that affected team members receive what they are owed plus 5.5 per cent interest per year and that this issue does not happen again."

Super Retail said it identified the issue through its own internal processes and had sought external expert advice.
CEO loses $840,000 bonus   

In all, about 4,500 Super Retail staff — accounting for around 10 per cent of Super Retail's workforce — worked on store refurbishments and fit-outs over the eight-year period of the pay review.

Mr Birtles and other members of the senior executive team lost a large part of their annual bonuses over the underpayment.    

In Mr Birtles' case short-term incentive payments for 2018 were wound back to zero, from more than $840,000 the year before.

In addition to the $7.9 million Super Retail identified, a further provision of $2.7 million for interest and "on-costs" have been set aside.

Super Retail reported a 7 per cent increase in profit to $145 million on a 4 per cent increase in sales revenue

The full year dividend of 49 cents will be paid — up 5.4 per cent on last year.

Super Retail was one of the better performers on down day on the ASX with shares up more than 8 per cent to $9.86.

Yes - the genuine mistake was in making the decision to do it... now fear of discovery has entered the equation and see how the piggies run...