Retail union claims victory for 32,000 workers in Federal Court class action
A proposed $55 million settlement has been reached in a class action brought by the Shop, Distributive and Allied Employees' Association (SDA) against ALDI Foods over allegations that tens of thousands of workers were not paid for time spent working before and after their rostered shifts.
The proposed settlement, which remains subject to final Federal Court approval, covers approximately 32,000 current and former ALDI store and warehouse employees across Australia.
It will apply to eligible current and former store employees, store managers, assistant store managers, and warehouse employees.
The settlement breakdown
Under the class action, ALDI has already paid approximately $28.9 million to affected workers.
The SDA estimates a further $26.3 million remains payable under the proposed settlement methodology, with ALDI also agreeing to pay interest on relevant amounts.
A separate $1.5 million contribution from ALDI towards the SDA's legal and project costs brings the total expected value of the outcome to approximately $55 million, subject to final calculations and court approval.
No legal costs or litigation funding commission will be deducted from workers' compensation payments.
A long-running dispute
The class action stems from an earlier SDA case involving employees at ALDI's Prestons Distribution Centre in New South Wales.
In 2022, the Federal Circuit and Family Court found that tasks performed by four warehouse employees before the start of their rostered shifts constituted work, and that those employees were entitled to be paid for that time.
Following that ruling, ALDI reviewed pre-shift work performed by some warehouse employees and made payments to certain current and former staff who applied.
However, the SDA argued the issue extended far beyond that distribution centre and filed the class action in the Federal Court in October 2023, alleging that store and warehouse employees nationally had similarly performed unpaid work before — and, in the case of store employees, after — their rostered shifts.
The proposed settlement is made without any admissions by ALDI.
A 'major result' for ALDI workers
SDA National Secretary Gerard Dwyer described the proposed settlement as a significant victory for ALDI workers and a demonstration of the value of union-led enforcement action.
"This is a major result for tens of thousands of current and former ALDI workers. All workers should be paid for every minute they are required to work," Dwyer said.
"This outcome sends a clear message to every major employer: work performed before or after a rostered shift is still work, and it must be paid."
Kelly Boi, the class action's lead applicant and a former ALDI store employee from 2016 to 2023, said the result vindicated workers who chose to act collectively.
"I am proud that ALDI workers stood together and pursued this case. Work before and after shifts is now properly recognised and paid, making work at ALDI better," Boi said.
"The proposed settlement also means I and thousands of other employees will receive a payment for pre- and post-shift work we performed in the past for no pay."
