Romeo’s Retail Group faces $30m class action for underpaying staff
One of the state’s biggest independent supermarket chains is facing a $30m class action over alleged staff underpayments, while another major SA grocer is being investigated for potential pay breaches.
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One of the state’s biggest independent supermarket groups is facing a $30m class action alleging mass underpayment of staff across its network of South Australian stores.
Romeo’s Retail Group is being accused of underpaying salaried employees, including store managers, department managers and assistant managers, at the group’s Foodland, IGA and Romeo’s branded supermarkets in SA and NSW.
Adero Law has commenced Federal Court action on behalf of employees at 15 Romeo’s supermarkets, and is likely to add more than 20 other stores to the claim.
The firm suggests up to 600 current and former employees could be entitled to compensation, with “conservative estimates” suggesting a potential liability of up to $30m.
In a statement of claim filed on behalf of former store manager Christopher Peter Thomas and others employed by Romeo’s under similar conditions, it is alleged that Romeo’s failed to pay penalty rates, overtime and annual leave loading.
It is also claimed that the company failed to pay travel, meal and laundry allowances that managers were entitled to, and wrongfully deducted the cost of uniforms from their pay.
Adero lawyer Ash Cutchie said workers had told the firm it was common to work in excess of 45 hours per week while only being paid for working 38 hours.
“Adero Law is instructed that the Romeo’s Retail Group harboured a culture where excessive hours were expected of all salaried staff, which flowed from the very top of the Romeo’s management,” he said.
“In particular, Adero is instructed that salaried employees were consistently rostered hours in excess of their contract terms and were then expected to work beyond those rostered hours.
“Underpayment is rife in the industry and this is another example – we believe there’s more of this going on out there and it has to stop.
“We hope the alleged culture of overwork and underpayment at Romeo’s can change for the better as a result of these proceedings.”
Mr Thomas was employed at various Romeo’s supermarkets between 2010 and 2016.
However the statute of limitations for underpayments in Australia restricts his and other claims to the past six years.
As well as seeking back-payment of the alleged underpayments plus interest, Adero Law is asking the court to impose pecuniary penalties to be paid directly to claimants.
A case management hearing has been set down for November 5. Romeo’s declined to comment.
Mr Cutchie said the firm was investigating similar potential wage underpayments at Drakes.
The Romeo’s class action is the third retail award claim Adero Law has filed following recent class actions against supermarket giants Coles and Woolworths.
In May Adero commenced a class action against petrol station operator OTR, claiming up to $70m in alleged lost wages on behalf of more than 8000 current and former employees.
Last week OTR was ordered to pay close to $65,000 to one former employee who was underpaid for more than a year.
The SA Employment Tribunal judgment followed a ruling last year that found OTR failed to pay a former trainee for 10-to-15 minutes of work completed prior to each shift, wrongly deducted 30 minutes for meal breaks he never took, and failed to pay overtime penalty rates.