YMCA caught in $1 million wage theft scandal
The YMCA has been caught underpaying hundreds of employees more than $1 million.
It’s believed the underpayments happened over an 18-month period and involved the charity failing to pay employees total hours worked.
The Fair Work Ombudsman has commenced an investigation into the wage theft, reports The Herald-Sun.
The YMCA is a not-for-profit that operates throughout Australia running affordable gyms, camps, childcare services and youth justice programs.
YMCA caught underpaying hundreds of staff
The YMCA is a not-for-profit that runs affordable gyms, camps, childcare services and youth justice programs.
In Victoria, the charity employs more than 5000 staff and volunteers across the state.
A whistleblower told The Herald-Sun that the YMCA failed to pay workers their full contracted hours.
It’s believed the wage theft totals more than $1 million.
“This impacts many at-risk young people, the very people this organisation seeks to protect,” a source told The Herald-Sun.
Unnamed sources blamed shoddy bookkeeping and lax rostering arrangements for the underpayments.
Shoddy bookkeeping
While the full impact of the wage theft is unknown, it has resulted in a review of the charity’s practices and the implementation of a new rostering system.
Unnamed sources blamed shoddy bookkeeping and lax rostering arrangements for the underpayments.
A YMCA Victoria spokesperson refused to confirm when the organisation first became aware of the wage theft.
They provided the following statement to The Herald-Sun:
“YMCA Victoria has been keeping staff informed about an ongoing major project to clarify and simplify our processes for on-boarding, recording rostering, time and attendance, qualifications and staff payments.
“We have let staff know we will soon start the progressive rollout of a new rostering, time and attendance system.
“We are working hard to make sure we continue to keep staff up to date on the progress of this project and how this will affect them and their work.
“Should we discover any issues as we introduce the new platform we are committed to resolving them at a system and individual level.”
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Previous payroll problem
This is not the first time the YMCA has had a problem with its payroll.
In 2015 it was forced to admit a system administrator error saw superannuation paid into the wrong account of 1486 YMCA Victoria staff.
Meanwhile, the Fair Work Ombudsman has confirmed it is investigating the wage theft scandal.
Industrial advocate Miles Heffernan said there is no excuse for wage theft.
No excuse
Industrial advocate Miles Heffernan said there is no excuse for wage theft.
“Employers as big as the YMCA should have proper payroll systems in place so underpayments like this never happen,” he said.
“Our company has developed new software which can assist employers ensure they are paying their staff the correct wages and entitlements.”
Mr Heffernan advised any employer or employee with a wage theft issue to contact Fair Work Claims as soon as possible.
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