Virgin could be forced to cough up back pay

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, Fairfax newspapers 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.

Virgin has declined to comment.

- AAP