ALDI class action settles 'start shift early' case for $55m

ALDI Australia has agreed to a proposed settlement of approximately $55 million to settle a class action about that claimed workers were not paid for duties performed before and after their scheduled shifts.

The settlement, which is pending Federal Court approval, could affect up to 32 000 past and present employees.

The class action was launched by the Shop, Distributive and Allied Employees Association (SDA) after it was found that allegedly, employees were required to perform unpaid “pre-start” and “post-finish” activities - tasks expected outside their rostered hours.

ALDI has already paid approximately $28.9 million to relevant workers. The proposed settlement, should it be approved, will deliver additional payments of around $26.3 million.

The SDA said in an Instagram post: “This outcome sends a clear message: if you’re required to work, you must be paid for every minute of this.”

 

 

 

 

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A post shared by SDA SA/NT (@sda_sa_nt)

SDA case against Chemist Warehouse

The proposed settlement comes after the finding earlier this month that retail giant Chemist Warehouse failed to raise workers’ pay, despite receiving Commonwealth subsidies to train them at higher qualifications, in a case that the SDA also advocated for.

The failure could lead to the company paying more than $10 million in backpay claims.

The South Australian Employment Tribunal found that four Chemist Warehouse stores in Adelaide underpaid seven workers who had a Certificate III in community pharmacy, by classifying them at lower levels - even after they gained the qualification.

SDA's secretary Josh Peak said the ruling it “has serious implications for Chemist Warehouse stores right across the country”.

He added, “This is a systemic problem at Chemist Warehouse. It’s not isolated to a few pharmacies doing the wrong thing, it is a nationwide issue.

“Chemist Warehouse workers could be owed tens of millions in backpay if they’ve been directed to work above their assigned classification.”

"The fact that the employer was pocketing government subsidies but didn’t give workers a pay rise is outrageous”.