Embattled Seven West Media could soon face a massive lawsuit from staff who claim they’ve been systematically underpaid.
Employment litigation firm Adero Law is investigating a class action over two major claims against the company, which owns the Seven Network.
As part of its analysis, the law firm has spoken to more than 20 current and former Seven staff and requested several personnel files.
Caitlin McIvor, a senior associate at Adero, told the Australian Financial Review her team is preparing the potential suit against the media giant, though it is yet to be filed.
Her clients have accused Seven of underpayment, misclassification of their roles, unpaid breaks and not paying overtime hours.
The first claim under investigation will focus on allegations Seven paid some of its experienced journalists and producers a ‘Level Five’ salary, just one rung above cadet or entry-level journalists.
The base rate for a Level Five employee was between $55,100 and $65,500, plus extra loading if the person works enough hours – as agreed on in the enterprise bargaining agreement (EBA) settled in 2022.
There was also a ‘personal margin’ included in the salary but some staff alleged this was slashed as the base salary was increased, which negated any pay rise.
Several Seven West Media staff are contributing to an investigation into alleged underpayment (pictured, Natalie Barr and Matt Shirvington, it’s not suggested they’re part of the class action)
Seven has been accused of failing to supplement a baseline salary for experienced staff, as outlined in a 2022 Enterprise Bargaining Agreement
Some staff have alleged their extra pay was absorbed by Seven as part of an ongoing effort to cut costs as it faces ongoing advertisement losses.
A spokeswoman for Seven West said the company rejected the accusations.
‘Seven West Media is confident it is paying its news and current affairs employees appropriately and in line with the enterprise agreement and legislative obligations,’ she said.
Secondly, Adero is investigating whether a recent Federal Court ruling on backpay could affect Seven employees.
The federal Court last month in an unrelated case ruled employers must keep detailed timesheets for salaried staff which include overtime.
The decision saw Coles’ backpay estimates jump from $31million to $250million, while Woolworths’ increased from $486million to $1.2billion.
If the law firm successfully proves Seven violated the 2022 EBA, it could result in a massive backpay bill. About 1,200 employees were party to the document.
Seven West’s chief executive Jeff Howard (pictured, right, with former Seven CEO James Warburton, left) promised to cut the company’s costs by up to $30million this year
The class action could have a huge effect on Seven, which is already facing financial struggles as advertisers move away from traditional media to streaming services and other media channels.
Some estimates put a $650million figure on advertisement revenue Australian commercial broadcasters lost between 2022 and 2024 alone.
Seven West’s chief executive Jeff Howard had pledged to reduce his networks costs by up to $30million this year, the latest in a string of belt-tightening efforts.
The Media Entertainment and Arts Alliance has a meeting with Seven workers next Wednesday to discuss a new three-year EBA.
‘MEAA members have reported concerns that Seven could be dodging their obligations to give their a staff fair pay rise under their Enterprise Agreement,’ MEAA media section director Cassie Derrick said.
