Woolworths admits it has underpaid workers by a staggering $390MILLION - as supermarket giant announces it will slash 1,350 jobs
- The supermarket giant's underpayment figure has ballooned to $390million
- A review found staff in Woolworths ALH Hotels group had been underpaid
- More than 1,300 Woolworths staff members are to be made redundant by 2025
- The company are building two automated distribution centres in western Sydney
Woolworths has admitted to underpaying its staff by $390million, with 1,350 workers to be made redundant by 2025.
The supermarket giant's staff underpayment scandal has continued with the company revealing more workers have been underpaid in their hotels' division at ALH Hotels.
An internal review found hotel staff were not paid in full compliance with the Hospitality Industry General Award throughout the 2018 and 2019 financial years.
'The Group remains committed to fully rectifying any payment shortfalls across all Group businesses as quickly as possible. We thank everyone for their patience through this process,' Woolworths chief executive Brad Banducci said in an ASX announcement.
The $390million figure could grow as the business continues to review its figures.
Woolworths staff underpayment figure has ballooned out to a staggering $390million
The report comes as Woolworths announced three distribution centres will close across NSW in Mulgrave, Minchinbury and Yennora amid plans to erect two automated sites in Moorebank in southwestern Sydney.
Woolworths have budgeted $176million for redundancy payments for the impacted team members, though Mr Banducci said the company planned to reintegrate staff into other areas of the company.
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'Woolworths Group is committed to supporting team members at sites that will close,' he said. 'It will be a number of years until the closure of our existing facilities, which will provide the opportunity to explore meaningful redeployment opportunities for our team.'
The automated sites will be completed by 2023, with Woolworths investing between $700 and $780million in Moorebank.
Woolworths chief executive Brad Banducci said the company are committed to rectifying any payment shortfalls as soon as possible
'Moorebank will transform the way we serve our NSW grocery customers. The new facilities will advance our localised ranging efforts, with the ability to hold over 30% more products than existing facilities,' Mr Banducci said.
'Automation will allow the creation of aisle-specific pallets by store, and in doing so, reduce the time to restock shelves and result in better on-shelf availability for customers.'
The Moorebank sites will create around 650 positions and more than 1,000 jobs in the construction phase.
Woolworths supermarket division recorded an 8.6% increase in total sales growth for the ten weeks to June 14, with their financial year earnings estimated to reach around $3.2billion.
Woolworths supermarket division recorded an 8.6% increase in total sales growth for the ten weeks to June 14
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