AN UPDATE FROM NATHAN CALLAGHAN, CHIEF PEOPLE AND CULTURE, WORLD VISION AUSTRALIA – 28 FEBRUARY 2020

 

 

 

   

In December we let you know that World Vision Australia had engaged with the Fair Work Ombudsman (FWO) about the application of the Social, Community, Home Care and Disability Services Industry Award (SCHADS) to the organisation’s workforce. I am writing to update you on how this remediation plan is tracking.

Since December the team has been working to implement SCHADS at World Vision Australia and ensure all affected employees receive what they are due.

I am pleased to report that we have now reached the first of three major milestones in this process and, coinciding with the implementation of the new time and attendance system on 22 February, the SCHADS pay rules are now being applied to our casual workforce. For some, this may mean an increase in pay, for others who are already paid at least the SCHADS rate there will not be any change.

The casual cohort was the most likely to be affected by the SCHADS Award and has, accordingly, been our first priority. Attention will now move to confirming compliance with SCHADS across the rest of the organisation. We are aiming to assess and confirm compliance with all full time and part time employees in March.  

The team will then focus on addressing any backpay for current and former impacted staff. I anticipate this process will start in April and is something we will continue to engage with the FWO about. 

I again thank you for your patience and understanding as we work to apply SCHADS to World Vision Australia’s incredible workforce as quickly as possible.

People are at the heart of World Vision and it is my priority, and that of Claire and the leadership group, to ensure that all members of the World Vision team are supported and appropriately rewarded in their roles.  

Please see below for some FAQs to help you understand how this may affect you or your colleagues, as well as former employees of World Vision Australia. I encourage you to take the time to read these.

Additionally, please direct any enquiries directly to the People & Culture team at peoplesupport@worldvision.com.au

Thank you again for your support.

Regards

Nathan Callaghan
Chief People and Culture
World Vision Australia

 

WORLD VISION AUSTRALIA PEOPLE UPDATE - 11 DECEMBER 2019

World Vision Australia has voluntarily disclosed inconsistencies in its application of appropriate Awards applying to some of our employees and is working with the Fair Work Ombudsman on developing a remediation plan.

As a result of a review of World Vision Australia’s current arrangements, it became apparent our employees are covered under the Social, Community, Home Care and Disability Services Industry Award and the terms and conditions contained within it.

We believe that a limited number of roles have been affected, resulting in the underpayment of some employees. While World Vision Australia cannot confirm an exact number at this stage, it is estimated to date to be about 45 current full-time and part-time employees. The issue also affects most of our casual employees. We are also calculating what this means for some past employees.

While the error was inadvertent, we apologise unreservedly to the employees affected and are acting quickly to resolve the issue.

“Our people are at the heart of World Vision and are critical to our mission of helping the world’s most vulnerable children,” said World Vision Australia CEO, Claire Rogers. “It is our priority to ensure our employees are respected, supported and appropriately rewarded in their roles.”

Until the Fair Work Ombudsman has assessed this issue, World Vision Australia is unable to determine either the exact number of employees affected, or the amount of any underpayment.

Our focus is now on working with the Fair Work Ombudsman to achieve a thorough and swift resolution to ensure affected employees receive what they are due.

We anticipate a resolution of the issue within the next few months.

Additional Information

Why is World Vision Australia transitioning to the Social, Community, Home Care and Disability Services Industry Award (SCHADS)?

As part of an organisation-wide review, World Vision Australia confirmed that our workforce was covered by the Social, Community, Home Care and Disability Services Industry Award (SCHADS) and its terms and conditions.
 
World Vision Australia had considered it was mostly award-free, and this incorrect understanding has resulted in instances of likely underpayment for a limited number of our employees.
 
While this mistake was not deliberate, paying our valued employees incorrectly is unacceptable. We apologise unreservedly for the error and are moving quickly to rectify it.
 
World Vision Australia reported the issue to the Fair Work Ombudsman (FWO) in December last year and continues to engage with them about what we are doing

What is an Award?

Awards determine the minimum terms and conditions that apply to an employee, such as minimum rates of pay, hours of work, allowances etc.

What has happened since World Vision Australia employees were first updated in December?

Since December the team has been working swiftly to implement SCHADS in World Vision Australia and ensure all affected employees receive what they are due

What are the other two milestones?

The second milestone is to confirm, and if necessary reach, current/future SCHADS compliance for all full-time and part-time employees. We remain on track to achieve this in March.
 
The third milestone is to address any backpay for current and former impacted staff. We anticipate this will commence from April and we plan to engage with the FWO about this.
 

What does it mean when you say that the SCHADS pay rules are being applied to our casual employees?

For members of World Vision Australia’s casual workforce this means they may see an increase in their remuneration in the next pay cycle. Some casual employees will not see any difference.

When will SCHADS compliance be confirmed for World Vision Australia’s full-time and part-time employees?

The employment of most full time and part time employees will already be compliant with SCHADS.  Now that the situation with casual employees has been addressed, the focus has turned to assessing and confirming compliance for all permanent staff, and if an issue has been identified, to address it – we anticipate this will be completed no later than mid-April. 

When will staff be paid any backpay?

World Vision Australia is working as quickly as we can to confirm compliance, and then ensure remediation is made as soon as possible. We are endeavouring to address any backpay for current and former impacted staff commencing in April.  We will continue to engage with the FWO, including about the remediation process. 

Will back-payments include superannuation?

Yes. Employees’ superannuation guarantee contributions will be included in any back pay. 

What happens if an employee has been overpaid?

The focus of the project is to confirm compliance, as a minimum, with the SCHADS award.  Most World Vision Australia employees are not affected by the SCHADS Award because they are paid at, or above, the award minimum. Where someone is paid above the SCHADS minimum, this will not change as part of this project. Of course, where an underpayment has been identified, that will be rectified and we are working to do that as quickly as possible.

When did World Vision become aware of the error?

Following a review of current arrangements, World Vision Australia identified errors in Award application in early 2019. It was at this point that World Vision Australia began the process of trying to determine the extent of the issue and then commencing to resolve it.

How was the error identified?

World Vision Australia first became aware of the potential discrepancy as the result of an internal review of our current arrangements which we undertook at our own initiative. Since this time, we have been working with specialist external consultants to review and determine the scope of the issue.

How many people are impacted?

The casual cohort was the most likely to be affected by the SCHADS Award and was the first priority. World Vision Australia’s attention will now move to confirming compliance with SCHADS across the rest of the organisation.  We anticipate that only a small number of non-casual employees will be impacted. 

What is the total of the underpayment?

World Vision Australia cannot yet confirm the extent of the likely total remediation for former and current employees. World Vision Australia has made provisions to fund any requirement rectification.   

What steps have been taken to avoid this happening again?

World Vision Australia has undertaken a review of remuneration and improved our processes and governance to ensure compliance is maintained.
 
World Vision Australia knows that it is critical that our employees have confidence that they will be paid correctly, therefore, we are committed to ensuring that employees are paid in line with the requirements of the Award.
 

What impact will this have to World Vision’s work?

It is too early to determine the extent of any impact on World Vision Australia’s operational work.

Will former employees be contacted?

Former World Vision Australia employees whom we believe to be impacted will be contacted and where payment is due, we are committed to achieving that as soon as possible.

How will former employees be contacted?

Former World Vision Australia employees whom we believe to be impacted will be contacted. Where payment is due, we are committed to repaying relevant amounts as soon as possible. We anticipate a resolution of the issue within the next few months

Where can former employees of World Vision Australia go for more information?

Please email: peoplesupport@worldvision.com.au