Sydney Water is facing widespread industrial action after unions accused the utility of mishandling the rollout of a new payroll system that has reportedly left hundreds of employees underpaid, paid late, or missing overtime and penalty payments.
The dispute centers on the Dayforce payroll system, introduced in July, which unions claim has repeatedly failed to properly process wages for many workers. According to union representatives, the payroll issues have caused significant financial hardship for affected employees who rely on regular payments to cover essential expenses such as rent, mortgages, and family commitments.
Members of the Australian Services Union (ASU), Australian Manufacturing Workers Union (AMWU), and Professionals Australia (PA) have moved to take industrial action, including work bans and rolling four-hour stoppages at various locations.
The ASU said that more than half of Sydney Water’s workforce could be involved in the action. Measures announced this week include workers refusing to pursue unpaid water bills, declining to provide access to contractors involved in capital works projects, and avoiding the use of motorways and toll roads while carrying out duties.
ASU Secretary Angus McFarland said employees had concerns from the outset that the new payroll platform would struggle to manage the wide range of allowances, penalty rates, and overtime arrangements that form a significant part of many workers’ incomes.
He said ongoing payroll errors had created severe stress for employees, with some workers still waiting for problems to be resolved several months after the system was introduced.
The union is calling for Sydney Water to temporarily reinstate its previous payroll system and provide emergency payments to workers who have been financially impacted by the rollout. The matter has also been raised with the Fair Work Commission, the Fair Work Ombudsman, and the NSW Industrial Relations Commission.
Sydney Water has acknowledged the issues and apologised to employees affected by the transition to the new payroll platform. The utility said it is continuing to work on resolving outstanding payment problems and supporting impacted staff.
The dispute highlights the challenges large organisations can face when introducing new payroll and workforce management systems, particularly where complex pay structures and allowances are involved.
As negotiations continue, industrial action could affect a range of operational activities across Sydney Water unless a resolution is reached between management and unions.
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