Justice department owes staff millions in back pay, union alleges

A wage theft scandal has hit Victoria’s justice department, with the state being threatened with court action over claims it owes millions of dollars in backpay to public solicitors, youth justice workers and others.

In a letter to Department of Justice and Community Safety secretary Kate Houghton, seen by The Age, lawyers for the Community and Public Sector Union (CPSU) have alleged “multiple contraventions” of two enterprise bargaining agreements.

The union estimates more than 1000 public sector workers could receive a combined $4 million in backpay, should its arguments succeed.

The claim, which is disputed, relates to pay progression for current and former courts and corrections staff on public service bands five to seven – the pay scale for those in their mid-career through to middle management.

Some employees of the Victorian Ombudsman and Independent Broad-based Anti-corruption Commission are also affected.

The industrial dispute, which has been simmering since March last year, centres on a disagreement over the outcome of performance reviews between department managers and their staff.

The union settled a similar dispute with the Department of Jobs, Skills, Industry and Regions this month after successfully arguing that, while key performance measures may be more onerous for public servants on bands five to seven, staff only have to meet – not exceed – their goals to get a pay rise.

A source aligned to the union, speaking on the condition of anonymity because they were not authorised to discuss the matter publicly, said the CPSU would allege up to 1500 justice department staff had been shortchanged a few thousand dollars each over the past six years.

“This is what we call methodical wage theft,” the source said.

A spokesperson for the justice department said it disputed the union’s claims.

Most of the department’s operational staff – including corrections, youth justice and sheriff’s officers – were not employed on bands five to seven, they added.

“We highly value the work of our staff and carefully follow the provisions outlined in the VPS enterprise agreement,” they said.

“These are senior department staff and any additional pay increases for these roles are appropriately linked to staff delivering a high level of performance, as per the enterprise agreement.”

CPSU Victoria Secretary Karen Batt said: “The irony of justice not complying with the law, industrial law in this case, is not lost on many of us in the labour movement and even those inside government.”

In the union’s letter to the department secretary, sent on Friday, Maurice Blackburn Lawyers demanded that all employees on the relevant grades who received a performance rating of “achieved expectations”, but were denied progression between 2018 and 2024, receive compensation with interest.

The union is also calling for redress for former staff.

“We seek your response within 14 days,” the letter stated. “In the absence of a satisfactory response, the CPSU will commence a representative proceeding in the Federal Court of Australia without further notice to the department.”

It’s another industrial relations headache for the Allan government.

Victoria Police has sought an intervention from the Fair Work Commission after 57 per cent of staff rejected a pay deal hammered out between the union and the force, which would have gradually phased in nine-hour shifts by 2028.

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