Foodland Workers Secure $5.5M in Underpayment Settlement

Over 500 supermarket employees, both current and former, in regional South Australia will receive a total of $5.5 million in back pay. The settlement with Eudunda Farmers Limited (EFL) marks a significant victory against retail underpayment in the state.

Landmark Settlement Validates Workers’ Rights

Tahlia Troeth, who experienced underpayment during her five years at the Kingston South East Foodland store, described the settlement as a “huge validation” for affected workers.

The Shop, Distributive and Allied Employees’ Association (SDA) highlighted that the agreement encompasses over 500 individuals who worked across 23 regional supermarkets under EFL and its subsidiaries. Most of these stores are part of the Foodland chain.

According to the SDA, the average payout will be approximately $11,000 per worker, with one individual slated to receive over $145,000.

Josh Peak, SDA South Australian secretary, stated, “It’s one of the biggest retail underpayment settlements ever achieved in South Australian history.”

Four-Year Legal Battle Concludes

The legal action began in the Federal Court in 2021. Initially, 64 current and former employees alleged underpayment or misclassification, seeking $1 million in back wages.

Mr. Peak noted that the total amount owed grew as more employees joined the case.

The SDA contended that EFL had misclassified positions, improperly calculated overtime and allowances, and violated minimum shift requirements over six years.

According to the Fair Work Ombudsman, in 2023-24, it recovered $540 million for more than 384,000 workers related to underpayments (Fair Work Ombudsman).

Company Response

EFL and the SDA jointly announced that EFL had reassessed worker classifications and adjusted pay rates to adhere to award requirements after the legal challenge began.

The statement further clarified that the $5.5 million settlement supplements prior back payments and ongoing wage increases, pending finalization of individual worker documentation.

Community Impact

Ms. Troeth, who advanced to assistant manager during her time at Foodland, stated she was compensated at a level three rate instead of the appropriate level five.

The former employee, who departed Foodland in 2022, expressed her disappointment regarding the underpayment’s effect on the Kingston SE community.

Mr. Peak emphasized the extensive impact of worker underpayment on regional economies.

Franklin Dos Santos, CEO of Foodland Supermarkets, acknowledged EFL’s regret for “any inconvenience caused” in a statement.

He affirmed that supporting and developing employees remains a “priority” for EFL.

Mr. Dos Santos added that EFL is collaborating with its employees and the SDA to promptly resolve past payment discrepancies and is committed to ongoing policy reviews.