Seven West Media Rocked by Underpayment Scandal: Staff Prepare to Launch Class Action Lawsuit Against Embattled Network
- Seven West Media faces massive lawsuit from staff alleging years of underpayment and misclassification of roles
- Employment litigation firm Adero Law investigating claims of unpaid breaks, overtime hours, and slashed personal margins
- Up to 1,200 employees could be affected, with potential backpay bill in the millions
Seven West Media, the embattled owner of the Seven Network, is facing a massive class action lawsuit from staff who claim they’ve been systematically underpaid for years. The lawsuit, being prepared by employment litigation firm Adero Law, alleges that the network has misclassified roles, failed to pay overtime hours, and slashed personal margins for experienced staff.
According to Caitlin McIvor, a senior associate at Adero Law, the firm has spoken to over 20 current and former Seven staff and requested several personnel files as part of its investigation. McIvor told the Australian Financial Review that the potential suit against the media giant is yet to be filed, but could have a huge impact on the network, which is already facing financial struggles.
The allegations centre around the network’s decision to pay some 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 worked enough hours, as agreed upon in the enterprise bargaining agreement (EBA) settled in 2022.
However, some staff claim that their extra pay was absorbed by Seven as part of an ongoing effort to cut costs, which has resulted in a massive underpayment of staff. Adero Law is also investigating whether a recent Federal Court ruling on backpay could affect Seven employees, which could result in a massive backpay bill.
A spokeswoman for Seven West Media rejected the accusations, stating that the company is confident it is paying its news and current affairs employees appropriately and in line with the enterprise agreement and legislative obligations.
However, the potential lawsuit could have a huge impact on Seven, which is already facing financial struggles as advertisers move away from traditional media to streaming services and other platforms. The network’s chief executive, , has promised to cut costs by up to $30 million this year.
The lawsuit is the latest blow to the embattled network, which has been struggling to stay afloat in a rapidly changing media landscape. The outcome of the lawsuit is yet to be seen, but one thing is certain – the allegations of underpayment and misclassification of roles have left a dark cloud hanging over the network.