Supermarket giant Coles reveals staff payment issue, setting aside $20 million to cover costs

The supermarket giant has joined a long list of Australian companies to reveal massive payment issues in its workforce that will cost $20 million.   

news.com.au February 18, 2020


The workplace relations agency has slammed Coles after the supermarket giant became the latest Australian institution to be embroiled in a wage payment scandal.

The major retailer launched an investigation after similar underpayments were revealed at its rival Woolworths as well as Bunnings, the Super Retail Group and iconic restaurant chains.

It said this morning as it handed down its half-year profit results which said it will set aside $20 million to cover the payment discrepancies from a six-year period.

RELATED: Woolworths underpays staff $300 million over nine years

RELATED: George Calombaris’ wage theft scandal is tip of the iceberg

Coles chief executive Steven Cain apologised to those impacted by the scandal, which related to a small group of salaried team members given a wage below the industry reward.

“We are working at pace with a team of external experts to finalise our review,” he said in a statement.

“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.”


The Fair Work Ombudsman expressed “disappointment” at yet another major group to be caught ripping off its employees and called on the industry to be more accountable.

“And in this case they chose to inform us only moments before their financial results announcement,” ombudsman Sandra Parker said.

“Coles Group joins the growing list of major corporates who have failed their employees by withholding their lawful entitlements when they should have measures in place to ensure that they do not.

“I am calling on boards to seek assurance from their chief executive officers that wages are being paid to employees in accordance with the law.

“The buck ultimately stops with the chair.”




The review into the payment irregularities discovered about 5 per cent of salaried team members at the company’s supermarket and liquor division had been underpaid.

Those covered by the enterprise agreement, however, were not ripped off by the giant retailer, which accounts for about 90 per cent of its workforce.

The retail union said it instigated the audit which lead to Coles making the underpayment discovery.

The Shop, Distributive and Allied Employees Association (SDA) said it approached the supermarket company and more than 100 other major retailers in November to check up on payment issues.

While all underpayments are wrong and should never occur, especially not in a major retailer with sophisticated accounting systems, the SDA acknowledges Coles has constructively engaged the SDA in its industry wide audit,” national secretary Gerard Dwyer said.

“The SDA also acknowledges the company’s assurances that, having identified its problems, payments will be made to affected staff (including interest) and that Coles is working with the union to finalise the issues its audit has uncovered.”

In October, Woolworths revealed its own payments scandal involving nearly 6000 salaried team members over nine years, amounting to $300 million.

It also comes after a dismal stretch of widespread wage theft cases across a number of retail networks and hospitality businesses.

These include Neil Perry’s Rockpool Dining Group, which owes staff at least $10 million, and fellow celebrity chef George Calombaris, who repaid workers $7.8 million.

Others also include the ABC, Qantas, Commonwealth Bank, Sunglass Hut, and 7-Eleven.