Virgin Blue could be forced to pay millions of dollars in back pay to Australian ground staff who failed to receive shift allowances.
The airline accidentally left a shift allowance out of the pay packets of its ground handlers and guest services staff from August 2000 until October 2004, Fairfaxnewspapers reported today.
The Australian Services Union has lodged a claim to have the matter heard in the Australian Industrial Relations Commission in Melbourne on Tuesday.
While ground staff worked an average of eight hours a day, Virgin's pay office miscalculated that staff had worked 7.5 hours, and paid shift allowances accordingly, the papers reported.
The episode had cast a cloud over hopes Virgin Blue had overcome its recent profit slump, Fairfax said.