About 500 regional workers are expected to receive payments
Eudunda Farmers Limited (EFL) is backpaying $5.5 million to more than 500 regional supermarket workers in South Australia as part of a settlement to conclude a four-year legal case.
The Shop, Distributive, and Allied Employees' Association (SDA) and Eudunda Farmers Limited announced the backpayment in a joint statement on Monday.
"Workers represented by the SDA will receive $5.5 million on top of previous backpay and ongoing pay increases to comply with the award, subject to individual workers' documents being finalised," the statement read.
More than 500 current and former workers employed across 23 regional supermarkets in South Australia are covered by the backpay.
They will receive, on average, almost $11,000 worth of backpay, according to the SDA.
"The SDA is proud to have secured $5.5 million in backpay and deliver wage justice for workers at Eudunda Farmers supermarkets," SDA Secretary Josh Peak said in a statement.
"This is a massive outcome for these workers and will be life-changing for many of them."
Major retail underpayment case
Peak said the case was "one of the largest retail underpayment cases in South Australian history."
It started out in 2021 with 64 current and former employees arguing they were underpaid and misclassified, ABC News reported.
Underpayment claims included misclassifying workers, incorrect and unpaid overtime, breaching minimum shift rules, and not correctly paying allowances.
The employees were seeking more than $1 million worth of backpayments at the time, but it grew to more than $5 million as more workers joined the case.
"What started out as just a few workers speaking up about their pay has now turned into 500 workers being compensated," Peak said.
EFL 'regrets any inconvenience'
According to the parties' joint statement, Eudunda Farmers Limited reviewed workers' classification levels, as well as backpaid and increased their pay to comply with award requirements after the SDA started the case.
"EFL is committed to supporting its employees and ensuring correct pay and entitlements," the joint statement said.
The ABC reported the supermarkets involved were mostly part of the Foodland chain but not all Foodland stores in SA have been accused of underpaying staff.
Foodland Supermarkets CEO Franklin Dos Santos told ABC News that the EFL "regrets any inconvenience caused."
"As with any business operation, mistakes and pay discrepancies can occur, as rightly identified in 2021 by the SDA," Dos Santos told the news outlet.
The process of finalising settlement documentation for relevant workers is underway. It needs to be accomplished before workers can be paid.
"The SDA and EFL are continuing to work together to enhance workers' rights," their statement read.
