The Star to Repay Thousands of Workers After $13 Million of Underpayments Found

Casino operator The Star has told shareholders it will spend approximately $13 million(AUD) to repay around 2200 workers it found were underpaid over a six-year period.

In an update to the market, The Star Entertainment Group Limited said it identified the underpayment of wages following a six-year retrospective wage review.

The review found that in some cases salaried team members were found not to be “better off overall” as their annual salary did not sufficiently compensate them for their equivalent award entitlements such as overtime and penalty rates.

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Approximately 2200 workers were on annualised salaries underpinned by a modern award during the review period.

The payback of wages – which include interest and superannuation contributions where applicable – is expected to cost approximately $13 million.

Managing Director and CEO Matt Bekier apologised to affected employees and said processes have been put in place to ensure workers are compensated fairly for their work.

“We apologise to any team member impacted by the payment shortfall and we are committed to doing the right thing by acting transparently. Our priority is to address this issue and to ensure that it doesn’t happen again,” Mr Bekier said.

Following the review, The Star has informed the Fair Work Ombudsman and the United Workers Union.

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United Workers Union casinos deputy director Imogen Beynon said any instance of underpayment was concerning.

“It’s always concerning when workers are underpaid,” Ms Beynon said in a statement.

“We expect that the company will quickly rectify the issue for all workers and if any of our members are impacted that any monies owed are repaid quickly and in full.

“We know from this example and many others that incidences of wage theft and underpayments are reduced when people are covered by a union agreement.”