MEDIA RELEASE – Tony Burke’s Department Now Admits Underpaying 201 Staff But the Minister Still Refuses to Apologise to Them

Senator the Hon Michaelia Cash

Shadow Attorney-General

Shadow Minister for Employment and Workplace Relations

Deputy Leader of the Opposition in the Senate

Senator for Western Australia

MEDIA RELEASE

3 JUNE 2024

TONY BURKE’S DEPARTMENT NOW ADMITS UNDERPAYING 201 STAFF BUT THE MINISTER STILL REFUSES TO APOLOGISE TO THEM

Minister Tony Burke’s Department of Employment and Workplace Relations today admitted it has underpaid 201 staff – more than double the number it had previously revealed.

Despite the startling new revelations at a Senate Estimates hearing Mr Burke refuses to apologise to the staff.

Answering questions from Shadow Minister Senator Michaelia Cash officials made the revelation that the underpayment crisis grew to 201 employees because ongoing payment errors were made well after the initial cohort of 99 staff underpayments were first discovered.

The 201 employees represent about 5% of the Department’s workforce. By way of comparison if a large company with a workforce of about 200,000 underpaid 5% of their staff that would mean 10,000 people would have been underpaid.

The underpayment debacle dates back to July 2022 and has now been a live issue for 12 months, having been discovered in June 2023.

The Department today revealed that it has repaid $243,063 to affected employees, with the latest payment being made on 9 May 2024. One employee was repaid $5,982, while the average amount repaid was $810.21.

The Department has accumulated over $300,000 in external expenses while attempting to rectify the underpayment issue. Those expenses included over $168,000 on data analysis and calculation of entitlements, more than $116,000 on legal advice and over $15,000 on communication advice.

“It is an absolute disgrace that Mr Burke’s own Department can’t pay people properly but he, as the responsible Minister, can’t be bothered apologising to those staff,’’ Senator Cash said.

“Mr Burke continually lectures the business community saying they should “just pay people properly” but his own Department can’t live up to that standard,’’ she said.

“As this debacle has highlighted the complex nature of the industrial relations system makes it difficult for employers to get these matters right. What chance do small and medium businesses have if the Department with vast resources, that oversees the system can’t get it right?’’ Senator Cash said.

ENDS