Weekly round-up: Insurance back pays, workplace deaths, and no jobs for grads

In this week’s round-up of HR news, an Australian insurance company has backpaid thousands of people, two men have passed away in separate workplace incidents in Western Australia, and UK job markets are getting tougher for graduates.

Aussie insurance back pays thousands of people

According to 7News, more than 19,000 underpaid workers are finally getting their money’s worth. Thousands of Australians have received their share of a $21 million sum after they were underpaid by their employer, Insurance Australia Group Limited (IAG), over a 10-year period.

Some people were even paid sums of up to $200,000, as the Fair Work Ombudsman warned the insurance giant to “do better”.

Current and former employees were paid an average back-payment of just over $1,000 in unpaid wages and entitlements for the period between 2013 and 2023.

Another $16.2 million was divided among workers who had missed out on long-service leave entitlements.

Fair Work Ombudsman Anna Booth was disappointed to see such large, well-resourced corporate employer failing its legal duty to staff.

“Corporate compliance culture starts with the board, including how it sets its risk appetite, performance measures and reporting,” she said.

These punishments will be swifter and harsher in the coming years. Booth implores these corporate entities to have a good look in the mirror and, frankly, do better going forward.

“Many boards need to do better, particularly with increased penalties and criminal offence provisions that commence in January 2025,” concluded Booth.

2 separate workplace deaths in WA

Two men have sadly passed away in separate workplace accidents in Western Australia. According to News.com.au, the first death was a man aged in his 20s. He passed away at a concrete factory in Dalwallinu, about 255 kilometres north-east of Perth. He was declared dead when police arrived at the facility.

The incident was reported to have involved a forklift that was carrying a heavy load. The incident occurred Wednesday, 3 April, at around 12:40pm.

Merely hours later, another male worker passed away on the job in the southern Perth suburb of O’Connor. The 32-year-old man died on the construction site at about 2:30pm. He was sadly crushed while working in the basket of an elevating platform.

WorkSafe is investigating both incidents. Safe Work Australia data shows the preliminary 2023 workplace death figure stood at 175. As of 28 March, there have been 24 total deaths this year. So far this year, there have been seven transport, postal and warehousing deaths, with also six in agriculture, forestry and fishing.

Sixty transport, postal and warehousing workers died last year, with 31 construction workers dying on the job. These figures drive home the importance of providing a safe work environment free of risk.

Graduates can’t find a job

Graduates in the UK are struggling to acquire jobs upon completing their studies at university. According to the Australian Financial Review, Britain’s university graduates are drying up at double the pace of the rest of the labour market, spurring concerns that businesses are not investing enough in their future workforces.

The number of vacancies for graduates in the UK fell 30.2 per cent from last February, according to data from the jobs search engine Adzuna provided to Bloomberg, which compares with a 15.1 per cent drop across the whole economy.

Kate Shoesmith, deputy chief executive officer of the Recruitment and Employment Confederation, stated: “Those new entrants are fundamental to the success of the economy and to the future labour market. Businesses need to be thinking about how, in this type of market, they are bringing new entrants in, and what their long-term workforce strategy is.”

The drop in opportunities for graduates is a symptom of loosening labour market, with employers curtailing hiring after the economy tipped into recession last year.

For young people, the most alarming trend is a deterioration in the number of jobs for those just starting out in a career. Those departing university are facing a disproportionately tough market.

This has also been an issue in Australia. According to Australian labour market data and graduate surveys from QILT, an average of 32 per cent of recent graduates in architecture and design find themselves without employment opportunities, highlighting a substantial gap between educational training and the practical skills required by the job market.

This issue is happening globally and is catching the attention of government entities. More attempts are being made to develop opportunities for future workers.