Seven West Media faces class-action over alleged staff underpayment

Seven West Media is facing a potential class-action from current and former staff who allege widespread underpayment and misclassification at the company that owns the Seven Network. Employment litigation firm Adero Law has launched an investigation and says it plans to file against the media group.

Adero has interviewed more than 20 Seven employees and reviewed multiple personnel files as part of its inquiry. Caitlin McIvor, a senior associate at Adero, told the Australian Financial Review that the firm is preparing a class action on behalf of clients who claim underpayment, misclassification, unpaid breaks and unpaid overtime. The first line of inquiry centers on whether Seven failed to top up 'personal margins' promised to senior staff. Seven is accused of paying experienced journalists and producers a 'Level Five' salary, just above entry-level positions, with the base rate ranging from $55,100 to $65,500 depending on tenure, plus overtime loading as defined in the 2022 Enterprise Bargaining Agreement (EBA). Several staff allege that this extra pay was absorbed by Seven as a cost-saving measure during a period of declining advertising revenue.

Seven West Media rejected the charges. A spokesperson said the group is confident it pays its news and current affairs employees appropriately and in line with the EBA and applicable laws.

The law firm is also examining whether a recent Federal Court ruling on backpay could affect Seven employees. The court held that employers must keep detailed timesheets for salaried staff that track overtime. The ruling has already lifted backpay estimates for major retailers, with Coles rising from about $31 million to $250 million and Woolworths from $486 million to around $1.2 billion.

If Seven is found to have breached the 2022 EBA, the backpay could apply to roughly 1,200 staff named in the document, potentially creating a substantial liability for the group. The allegations come as Seven West contends with ad-revenue declines and a broader shift in advertising away from traditional television to streaming and digital platforms. Seven West’s chief executive, Jeff Howard, has pledged to reduce costs by as much as $30 million this year while the company works to stabilize its finances amid the revenue downturn.

The MEAA has scheduled a meeting with Seven workers next week to discuss a new three-year EBA. Cassie Derrick, MEAA’s media section director, said members have raised concerns that Seven could be dodging fair pay rises under the current agreement. The outcome of the investigations and any potential legal action remains uncertain, but the proceedings could have broad implications for Seven’s labor costs and its strategy in a shifting media market.