Union secures landmark win over Chemist Warehouse
The Fair Work Commission has delivered a crushing blow to Chemist Warehouse’s billionaire owners, forcing them to the bargaining table with workers for the first time.
Chemist Warehouse has been ordered to negotiate an enterprise agreement with its workers after the shop assistants union used Labor’s multi-employer bargaining laws to secure a landmark legal victory in the Fair Work Commission.
The FWC orders, an Australian first for the retail and pharmacy sectors, directly name billionaire owners and principals within the Chemist Warehouse network, including Marcello Verrocchi and entities connected with the Gance family, among employers required to bargain with the Shop Distributive and Allied Employees Association.
The decision covers about 300 workers in Chemist Warehouse stores in South Australia but unions would be expected to try to spread any resultant agreement across the company’s network of stores in other states.
It also has implications for Sigma Healthcare, which merged with Chemist Warehouse this year, and owns retail pharmacy brands including Amcal and Guardian.
Workers employed across the largely non-unionised Chemist Warehouse franchisee operations are generally casual and paid award minimum rates, with any annual pay rises tied to the commission’s yearly review of award and minimum wages that apply to the nation’s lowest paid.
SDA South Australian branch secretary Josh Peak said the decision was a watershed win for Chemist Warehouse workers. “The commission has ordered the network to the bargaining table; now the billionaires behind the brand must show respect to the people who help make their massive profits,” he said.
“For too long, Chemist Warehouse has relied on a fragmented franchise model that has made it near impossible for workers to bargain together. Those days are over. One network, one deal.
“Pharmacy workers will finally have a collective voice to win better pay, predictable rosters, and stronger rights.”
Chemist Warehouse, which declined to comment on Wednesday about the decision, opposed the union application on the basis it was not supported by a required majority of workers.
The FWC found a “relatively narrow” majority of workers across 13 stores in South Australia wanted to bargain for a new agreement.
Under the bargaining laws, the Chemist Warehouse franchisees need to agree with the union for a new agreement.
If there is no deal after nine months, the SDA can apply for an intractable bargaining authorisation and if successful seek arbitration from the FWC.
Mr Peak said he hoped an agreement could be reached that included over-award pay rates and improved entitlements, including better rosters. He would not speculate on the likely quantum of pay rises to be sought on behalf of the workers.
He said the decision was significant for the pharmacy sector, which employs 70,000 workers who were “agreement free” – paid the legal minimum under workplace laws and not covered by enterprise agreements.
ACTU assistant secretary Liam O’Brien said Chemist Warehouse’s billionaire owners had fought hard to keep their workers locked out of collective agreements. “This is a significant win for the union movement and a first for retail pharmacy workers in Australia,” he said.
“For too long, employers like Chemist Warehouse have used their franchise structure to keep their employees stuck on bare minimum pay rates. Retail pharmacists are among the lowest paid workers in the sector and are often younger women.
“The FWC’s ruling makes it clear that Chemist Warehouse must come to the negotiating table and stop trying to hide behind their franchising model to avoid paying proper wages.”
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