Wage scandal crisis: Target underpaid workers by $9MILLION after parent company revealed it also withheld pay from staff at Bunnings
- Wesfarmers revealed staff payroll errors in its half-year earnings on Wednesday
- The Perth-based conglomerate said staff at Target were stiffed out of $9M
- It also indicated a $15million remediation in its industrial and safety division
Wesfarmers has become the latest company to be caught up in a wage scandal after revealing it underpaid workers at Target by $9million.
The Perth-based conglomerate, which also owns Bunnings Warehouse, Kmart, Officeworks, among other big name retailers, revealed payroll discrepancies in its half-year earnings.
The company, which recently admitted to underpaying staff at Bunnings and its industrial businesses, confirmed on Wednesday Target staff were also stiffed out of pay.
The firm identified in its results for the six months to December 31 a $9million payroll remediation for Target and a $15million remediation in its industrial and safety division.
Wesfarmers announced on Wednesday that workers at Target were stiffed out of $9million in wages
The announcement follows an admission by Coles on Tuesday it was expecting a $20million hit after managers at its supermarkets and liquor division were underpaid over the past six years.
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'Following the payroll errors previously identified, Wesfarmers' businesses have conducted extensive reviews of their respective payroll systems and processes,' the company said in its release to the ASX.
The company also indicated a $15million remediation in its Bunnings and industrial and safety division
'As a result of these reviews, some additional payroll errors have been identified.'
Chief executive Rob Scott said 'immediate steps' were being taken to rectify the situation and repay affected staff members.
In its earnings result, Wesfarmers' net profit from continuing operations was $1.14billion for the half - up 6.0 per cent from $1.08billion a year ago not accounting for new lease standards - as revenue climbed 6.0 per cent to $15.25billion.
Earnings from continuing operations - not accounting for interest on lease liabilities - fell 0.5 per cent to $1.64billion.
Factoring in the impact of the new leasing standards and discontinued operations, statutory net profit dropped to $1.21billion from $4.54billion a year ago when the company's coffers were flush after the demerger with Coles and divestment of Bengalla.
