Latest news with #EudundaFarmers
Yahoo
15-07-2025
- Business
- Yahoo
500 supermarket workers in South Australia gain $3.6m in backpay
Australia's Union the Shop, Distributive and Allied Employees Association (SDA) has secured A$5.5m ($3.6m) in backpay for more than 500 current and former regional supermarket workers across South Australia. This outcome follows a four-year legal struggle with Eudunda Farmers and its subsidiaries, resulting in reimbursement for systematic underpayment across 23 supermarkets. Most of the supermarkets involved in the underpayment issue were from the Foodland chain. However, not every Foodland store in South Australia has been implicated in the underpayment of workers, as reported by ABC News. Eudunda Farmers underpaid workers by engaging in practices such as assigning workers to a lower classification than legally required, failing to pay correct overtime rates, neglecting mandatory allowances, breaching minimum shift length requirements and underpaying salaried staff for their hours worked. Out of the total of A$5.5m in backpay, the average amount per worker is close to A$11,000. One employee is receiving more than A$145,000, and an additional 16 will receive above A$50,000. Eudunda Farmers operates 20 supermarkets in regional South Australia and employs 700 locals. The company's presence extends from Clare and Port Augusta to Barmera and Bordertown. The SDA initially uncovered the systemic underpayments in 2020, identifying breaches of the General Retail Industry Award at several Eudunda Farmers Supermarkets. The issues ranged from worker classifications to salaried work, overtime and allowances. In 2021, the SDA filed a federal court claim on behalf of 64 workers, initially seeking A$1m in backpay. As the case unfolded and more workers came forward, the magnitude of the underpayments grew, with the total owed to workers now quintupling the original claim. SDA stated: 'This case is proof of how powerful and effective we can be when we stand up together.' In mid July 2025, the SDA also submitted applications targeting McDonald's and its franchisees nationwide to empower their 115,000 employees with collective bargaining rights for improved wages and conditions. This move follows the Fair Work Commission's groundbreaking ruling that approved the SDA's supported bargaining authorisation application for 5,000 McDonald's workers across 18 employers and 53 restaurants in South Australia. The supported bargaining legislation, introduced by the Albanese government, is designed to assist low-paid workers with shared interests in gaining access to collective bargaining opportunities. "500 supermarket workers in South Australia gain $3.6m in backpay" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ABC News
06-07-2025
- Business
- ABC News
Underpaid regional supermarket workers to receive $5.5m after court settlement
More than 500 current and former supermarket workers across regional South Australia will receive $5.5 million in back pay, after securing what their union describes as "one of the biggest retail underpayment settlements" in the state's history. Tahlia Troeth, who was underpaid by Eudunda Farmers Limited (EFL) while she was employed for five years at its Kingston South East Foodland store, said the settlement was a "huge validation" for workers. "It's just so disappointing that they (EFL) thought it was OK to treat the community that they employ like this," she said. "[It was a] huge validation when it came through that they finally agreed that yes, this wasn't OK." The Shop, Distributive and Allied Employees' Association (SDA) said the settlement with EFL and its subsidiaries involved more than 500 current and former workers employed across 23 regional supermarkets. The majority of the supermarkets were part of the Foodland chain, but not all Foodland stores in South Australia have been accused of underpaying workers. According to the union, on average, each worker will receive almost $11,000 in back pay. One worker is set to receive more than $145,000. "It's one of the biggest retail underpayment settlements ever achieved in South Australian history," SDA South Australian secretary, Josh Peak, said. "Workers deserve to be paid properly to start with and we weren't prepared to settle for an amount that was less than what we thought workers were owed." The underpayment case was first brought to the Federal Court in 2021. At the time, 64 current and former EFL employees said they had been underpaid or misclassified, and were seeking $1 million in back pay. Mr Peak said the total owed to employees increased to about $5.5 million, as more workers joined the case. The union argued EFL misclassified workers, incorrectly paid overtime and allowances, and breached minimum shift rules over a six-year period. "The primary underpayment that we first uncovered related to misclassification, so workers being paid in many cases level one in the retail award when, in fact, they should have been paid level three, four or five," Mr Peak said. "For some workers, that represented up $5 an hour that they were being paid below the legal minimum. "It also went to the mis-payment [sic] of a range of allowances [such as] not being paid cold work allowances, not being paid the uniform allowance, or uniforms weren't being provided to them as they should be under the award." A joint statement issued by the SDA and EFL states that after the case was brought to court, EFL reviewed workers' classification levels and increased their pay to comply with award requirements. "Workers represented by the SDA will receive $5.5 million on top of previous back pay and ongoing pay increases to comply with the award, subject to individual workers' documents being finalised," the statement said. Ms Troeth, who over her five-year career at Foodland rose to the position of assistant manager at the Kingston SE store, said she was paid a level three wage, when she should have been paid a level five wage. "There was a big issue with misclassification of workers," she said. "We also had to pay for our own uniforms, which, when uniforms are compulsory, we're not supposed to pay for them." The former worker, who left Foodland in 2022, said the underpayment of workers was "disappointing" for the entire Kingston SE community. "Being from a really small country town [like] Kingston SE, the Foodland is such a huge part of the town," she said. "Most of my friends and my peers, we all worked there because it was the only place to get a job after school that you could do for a couple of hours and earn some pocket money. "Once I was made aware of the Fair Work website and how to check my rate through the SDA union, I was just shocked at how many things I wasn't being paid for." Mr Peak said the underpayment of workers impacted regional communities' broader economies. "Seeing that money going back into regional communities, back into workers' pockets is significant," he said. "We have to wonder, what family holidays were missed out on, what was sacrificed because workers weren't getting their legal minimum to start with?" In a statement, Foodland Supermarkets CEO Franklin Dos Santos said EFL "regrets any inconvenience caused". He said upskilling and supporting employees was a "priority" for EFL. "As such, various roles within the business are supported by different wage classifications and award entitlements," he said. "As with any business operation, mistakes and pay discrepancies can occur, as rightly identified in 2021 by the SDA." Mr Dos Santos said EFL was working with its employees and the SDA to ensure that "past payment discrepancies are rectified as a priority". "This process is now underway and will finalise within several weeks," he said. "EFL will continue to engage and inform employees throughout. "EFL continues to review and update all policies and procedures to ensure they are robust, consistent, and adhere to best practice standards."
