The Commonwealth Bank comes under scrutiny for alleged non-super payments to employees
FEBRUARY 21, 2017,6:23AM
THE nation’s largest bank, the Commonwealth Bank, has come under fire for allegedly failing to correctly pay thousands of employees their correct superannuation entitlements less than a week after posting record billion-dollar profits.
Tipped to affect thousands of employees and run into “millions of dollars” of payments, CBA employees at the lower end of the pay scale including those in branches, call centres and administration centres could be impacted by the lack of payment.
In the latest scandal to hit the banking industry, CBA has confirmed they are investigating the issue relating to the compulsory superannuation payments on additional hours worked by employees.
It is understood to be a common occurrence for part-time staff to work extra hours.
CBA chief executive Ian Narev last week announced a record $4.9 billion half-yearly profit.
The Financial Sector Union of Australia’s national secretary Julia Angrisano said it was of "deep concern” the nation’s most profitable bank had allegedly failed to pay its staff their full superannuation guarantee entitlements.
She claimed the practice dated back to 2009.
“We’ve had members of our union contact us over a period of time regarding this issue and we have raised it with the bank.
“We know there are 7000 part timers in CBA at the moment but there has been a regular turnover of part-time bank staff over the years and the full extent of the problem could run into millions of dollars in back payments plus interest.”
In letters seen by News Corp Australia from the Commonwealth Bank to the FSU, the banking giant confirmed the issue is “complex” and is under investigation.
The bank also acknowledged in the letters they were compiling pay and roster data for the past 12 months of employees who claim to be impacted.
The issue comes in the heat of the Federal Opposition strongly pushing for a Royal Commission into the banking industry.
Ms Angrisano said a majority of part-time employees at the bank were women.
The FSU has sought legal advice that has determined the bank should be paying staff the required 9.5 per cent superannuation guarantee on additional hours and above ordinary hours worked.
An CBA spokeswoman last night said they were reviewing the matter.
“CBA understands the importance of superannuation to help secure and enhance the financial wellbeing of our employees, and are committed to ensuring that we comply with obligations to employees,’’ she said.
Underpayment has remained a significant problem in the superannuation industry.
In a report released last year by the Australian Taxation Office and Australian Bureau of Statistics it claimed one third of Australian workers were missing out on $3.6 billion a year in superannuation entitlements.
