Coles Underpaid Store Managers $20 Million
Supermarket giant Coles has admitted underpaying its store managers $20 million.
Coles revealed the underpayment, which affects its salaried team members across both its grocers and liquor businesses, alongside its half-year results, The Sydney Morning Herald reported.
It's the latest retailer to get caught up in an underpayment scandal.
Coles said about one percent of its total team members had been underpaid, citing differences between employees' remunerations and the General Retail Industry Award (GRIA).
The underpayments are believed to have occurred over a six-year period.
Coles declared that for about five percent of salaried managers at its liquor stores, there is a "salary difference relative to the GRIA".
"Coles has taken a provision of $3 million for estimated related payments in Liquor over the last six years, and a further provision of $1 million for interest and on costs," the statement said.
The company has highlighted $12 million in back-payments for relative store members and a further $4 million in interest and additional costs.
In a statement on its website, Coles CEO Steven Cain said, "we aim to make Coles a great place to work, and apologise to those team members who have been unintentionally affected.
“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," he added.
“Coles has implemented steps to improve our systems and processes.”
10 daily has contacted Coles for comment.
More to come.