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Does Australia have a controls problem?



Last week I wrote a post about George Calombaris' restaurants (MAdE Establishment) and how a failure in controls resulting in the underpayment of its staff, has consequently resulted in his restaurant empire now being closed. He's not alone. Late last year, Woolworths admitted up underpaying its staff tho the tune of $300 million, and now recently, Coles has also admitted to underpaying staff for the past 6 years to the tune of $20 million. There is more tho, with the Sydney Morning Herald reporting that Super Retail Group, Michael Hill Jewellers, Domino's and Bunnings have also been found to be underpaying staff in recent times. This is appalling, because ultimately, it's the employee who loses out, and whilst for Woolworths and Coles employees will be back paid and keep their job (with Coles even paying interest to the affected team members), the same can't be said for George's team who have all been let go due to the restaurant's closure. So who is to blame here? Whilst I acknowledge that a lot of what I'm about to say is speculation (we never know what's happened in the background), and that we only know parts of the story, it's still good to consider where this may have gone wrong, and what role each person could have had in preventing these issues. The external auditors