Sydney Water has agreed to provide emergency payments to employees affected by ongoing issues with its new $40 million payroll system, as staff prepare to vote on possible industrial action. The NSW government-owned utility took the step following a five-day conciliation with the Australian Services Union (ASU) at the New South Wales Industrial Relations Commission.

The controversial payroll system, known as Dayforce, was introduced in early July to replace eight previous systems with a single integrated platform for managing pay, leave, timesheets, and other human resource functions. However, since its launch, thousands of Sydney Water employees have experienced underpayments, overpayments, or missed payments due to unresolved technical problems.

A whistleblower within Sydney Water revealed that the system went live despite at least 160 outstanding technical issues, down from an initial 200 problems identified during testing. Dayforce’s inability to accommodate the complex pay structures—particularly for civil maintenance workers who rely heavily on overtime and shift allowances—has been a significant source of difficulty.

In response to mounting staff frustration and financial strain, Sydney Water and the ASU agreed that affected employees will be able to request an emergency payment. Workers can choose either an immediate flat payment of $500 after tax, an amount they believe they are owed, or await individual claim processing. The utility described the rollout as a “bumpy landing” but emphasised the anticipated long-term benefits of consolidating payroll functions.

ASU secretary Angus McFarland acknowledged the emergency payments as a necessary relief but characterised them as a temporary measure—a “bandaid” addressing the immediate financial stress facing staff. He emphasised the union’s demands for Sydney Water senior management to forgo their combined average $3.1 million remuneration until the payroll issues are fully resolved, and called for a return to the previous payroll system.

Employees, some of whom have sought counselling due to the anxiety caused by irregular pay, are considering further industrial actions, including suspending activities such as chasing unpaid bills, unless the system is fixed or replaced. The situation poses ongoing operational and morale challenges for Sydney Water as it seeks to stabilise an essential public service amid technical difficulties and workforce unrest.