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Red Cross fixes pay mistake

The humanitarian division of the Australian Red Cross has made mistakes in paying staff.

Red Cross CEO Judy Slatyer said: “I am very sorry mistakes have been made in paying staff and we are taking urgent steps to fix this and pay everyone their entitlements.”

“Given the breadth of our work, we operate across a number of industries and awards. We made incorrect assumptions about how to allocate specific roles to awards, which means we have not paid some staff the correct amount. It has had an impact over several years.

“This issue affects current and former staff and came to light when we commenced a remuneration review.

“We are undertaking detailed analysis, reviewing old databases, paper files and individual records. We have engaged auditors Ernst & Young to assist us with this work.

“Our estimate is that approximately 800 current staff are impacted. The average individual impact is around $1,800 per annum over a period of several years. We’re still calculating what this means for past employees,” Ms Slatyer said.

Red Cross has approached the Fair Work Ombudsman to brief them on the issue, and to seek their advice to ensure the matter can be rectified now and into the future.

“We sincerely apologise for mistakes made and the uncertainty that this causes staff, who are at the heart of our humanitarian work. We should not make mistakes like this and we are fixing this urgently,” Ms Slatyer said.

“We will ensure that current staff are paid their correct salary from mid-August and they will receive back pay soon after. We will then move to provide back pay entitlements to all previous employees by the end of the year. Blood Service staff are not impacted.

“This will have no impact on our humanitarian work and services,” Ms Slatyer said.

For media enquiries contact Antony Balmain on 0408 018 609 or abalmain@redcross.org.au

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