Eudunda Farmers’ regional supermarket workers win $5.5m in backpay after ‘underpayment’

Supermarket workers across regional SA will receive millions in backpay after what a union claimed was one of the “largest retail underpayment cases in SA history”.

A major regional employer will pay back more than $5.5m in wages to hundreds of workers after a union reached an out-of-court settlement.

Shop, Distributive and Allied Employees Association secretary Josh Peak called last week’s settlement a “massive outcome” for Eudunda Farmers Ltd workers – “life-changing” for some.

“This is one of the largest retail underpayment cases in South Australian history,” he said.

“It’s been a long journey and we are pleased that after so many years, that Eudunda Farmers Ltd has negotiated in good faith and done the right thing by backpaying workers.”

Workers on average can expect to receive nearly $11,000 but Mr Peak said many will see sums in the tens of thousands.

He said one household, where two people were employed by the company, will see more than $150,000 paid back.

“All workers will at least receive $1000,” he said.

SDA secretary Josh Peak. Picture: Kelly Barnes

The SDA launched legal proceedings against the company in the Federal Court in 2021 on behalf of 64 employees, with hundreds more workers joining since.

Claims against Eudunda Farmers included misclassifying workers, incorrectly paying overtime, breaching minimum shift rules and incorrectly paying allowances.

In a statement, the company said it was working to ensure that past payment discrepancies were “rectified as a priority”.

“ … various roles within the business are supported by different wage classifications and award entitlements,” the statement said.

“As with any business operation, mistakes and pay discrepancies can occur as rightly identified in 2021 by the SDA.

“EFL regrets any inconvenience caused.”

The SDA and EFL agreed to settle the case after the union consulted workers about a settlement proposal.

‘This sends a very clear message to employers,” Mr Peak said.

In a joint statement, the union and Eudunda Farmers said EFL has now reviewed classification levels, paid back workers and increased pay to comply with award requirements.

Eudunda Farmers as a company runs more than 20 supermarkets across regional SA, including the Bordertown and Kingston Foodland stores and the Millicent IGA and employs more than 700 South Australians.

It is the major shareholder in six other companies that in turn run stores in regional towns across the state.

Former Jamestown Foodland employee George Seppelt will receive more than $6000 from the court settlement between the SDA nd Eudunda Farmers Limited.

George Seppelt, who worked at Jamestown Foodland from 2015 to the end of 2018 and then again from 2020 until 2021, said it was great to finally be fully recognised for the work he and others did.

Mr Seppelt, 25, said he had not been paid cold work allowance, had to pay for uniforms that were meant to be covered by the company and was compensated as a level-one retail worker while working as an assistant deli manager during his second stint at the store.

“There was very much a culture of don’t ask management questions, especially in my store,” he said.

Mr Seppelt, who will receive more than $6000, said it was great that the company has recognised that they’ve done the wrong thing and were fixing it.

Mr Peak said that a consequence of the payment issues was money being taken out of regional communities.

“This was money that … should have been paid to them but also should have gone on to support their regional economies,” he said.

“One of the great things about this settlement is we’re going to see all of that money paid to workers and then go back into regional communities.”

One of the primary grounds for compensation is that 275 workers were misclassified as lower-level employees, despite performing more senior roles.

Mr Peak said EFL has already started paying the money to workers, with most of it expected to be paid within the next couple of weeks.

The SDA and EFL said they were continuing to work together to enhance workers’ rights.

EFL said it was committed to supporting its employees and ensuing correct pay and entitlements.

Originally published as Eudunda Farmers’ regional supermarket workers win $5.5m in backpay after ‘underpayment’