Tribunal ruling exposes 'systemic' pay issue at Chemist Warehouse
Seven pharmacy assistants at Chemist Warehouse were found to be underpaid in a key test case that could deliver tens of millions of dollars in backpay to the pharmacy retailer's employees nationwide.
The South Australian Employment Tribunal (SAET) ruled that the seven workers, employed across the Colonnades, Elizabeth, Clovelly Park and Modbury stores, were entitled to be classified and paid at Pharmacy Assistant Level 3 under the Pharmacy Industry Award.
The tribunal found the workers used the higher level of skill and competency gained through their Certificate III training in their day-to-day duties, yet continued to be paid at Level 1 or Level 2 rates.
It added that the employer had "accepted public funds" under a government incentive to upskill employees, but chose not to pay them for utilising those skills.
"Following their qualification at Certificate III in Community Pharmacy, each of the employees was required by their employer to work at the level of competency of the Certificate III, and was entitled to be classified and paid at Award classification Pharmacy Assistant Level 3 as claimed," the tribunal ruled.
A 'systemic problem' at Chemist Warehouse
The Shop, Distributive, and Allied Employees' Association (SDA) said the affected workers were underpaid $1.57 an hour, or roughly $60 a week.
But the ruling had implications well beyond the four Chemist Warehouse stores involved, according to the SDA.
"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," said SDA SA Secretary Josh Peak.
He warned that this ruling could lead to a potential compensation of more than $10 million to the impacted workers nationwide.
"This ruling has serious implications for Chemist Warehouse stores right across the country," Peak said. "Chemist Warehouse workers could be owed tens of millions in backpay if they've been directed to work above their assigned classification."
Chemist Warehouse has declined to comment on the ruling ahead of a further hearing scheduled in July 2026, according to the Australian Financial Review.
"We have no comment while we await the directions hearing," a spokesman told the news outlet.
