Steelmaker deducted annual leave entitlements on rostered days off
BlueScope has repaid an estimated $3 million in underpayments to its Western Port employees after deducting annual leave entitlements on rostered days off.
The Australian Workers Union (AWU) said the steelmaker has agreed to recredit the full amount of annual leave that was deducted for the past six years, as well as maintain the 250% public holiday allowance.
A total of 468 current and 169 former employees will receive recredited leave and payments, according to the AWU.
Ronnie Hayden, AWU Victorian Branch Secretary, hailed the repayment.
"Shift workers deserve to be properly compensated when it comes to public holidays," he said in a statement.
The underpayments stem from BlueScope's practice of subtracting annual leave hours for rostered days that coincided with public holidays, while paying 250% penalty rates for the dedicated leave.
However, a Federal Court ruling last year declared that public holidays should not be considered "regular" workdays for shift workers or annualised roster workers, and workers cannot be automatically rostered on.
The union, which raised the matter as early as 2021, persisted in claiming back payments for underpaid employees. It also argued that the public holiday penalty rate was a separate entitlement to the deduction of annual leave.
"We hope this sends a message to employers who try to use tricky policies to undercut our members' hard-fought wages and conditions – we will not give up when we know something is unfair," Hayden said.
Bluescope's previous practice of deducting annual leave on public holidays has long been the standard practice for many manufacturing facilities and mine sites across Australia.
"We know this is standard practice for many manufacturing sites – but the fact is, it's an unfair practice," Hayden said. "We're in the process of pursuing claims for members of several other employers and will keep those members updated."
