There’s a lot of hard work that goes on behind the scenes of supermarkets to ensure that our shopping experiences are convenient and affordable.

However, it looks like discount supermarket chain ALDI is the latest target of a lawsuit, this time facing an enormous $150 million claim in unpaid wages it supposedly ‘systematically’ withheld from tens of thousands of its workers across the country.

The allegation came from the Shop, Distributive and Allied Employees Association (SDA)—Australia’s largest private trade sector union—who lodged the claim in Federal Court on Friday, 26 October.

The complaint claimed that employees were forced to work up to 30 minutes before the start of their shift without pay.

According to the union, tasks that were undertaken with no payment included emptying bins, checking communication devices, performing safety checks and cashing up the register— activities which they state have become a regular habit for staff across the country.

ALDI is facing another lawsuit against the SDA for unpaid wages amounting to $150 million. Credit: Unsplash

'We estimate that over 20,000 workers are owed $150 million in back pay, and we’re seeking proper compensation for impacted workers,' said the SDA.

Back in late 2022, the Federal Court determined that ALDI underpaid distribution workers in Sydney by making them start work up to 15 minutes before their shifts.

According to National Secretary Gerard Dwyer, ALDI’s alleged misconduct was ‘fundamentally unlawful and illegal.’

‘ALDI has had its chance to do the right thing and back pay workers after they lost the Federal Court case in NSW,’ Dwyer said.

‘They’ve fumbled the bag and failed to do it right by their workforce; now they have to face the consequences of these breaches… over $100 million has been ripped out of the pockets of workers and their families by this multi-billion-dollar corporation,’ he added.

The Australian Taxation Office (ATO) revealed in FY 2020-2021 that ALDI increased its revenue from $9.6 billion to $10.7 billion. ALDI also reported that its sales in the last quarter of 2022 increased by 13.2 per cent because consumers opted for the discounter to save money due to higher living costs.

Other major supermarket chains weren’t immune. Woolworths, for instance, was up against over 1,000 criminal charges brought on by Wage Inspectorate Victoria for allegedly failing to pay more than $1 million in long service leave. It was recently reported to have shortchanged workers by nearly $600 million in recent years.

In our previous article, Coles was estimated to owe its employees underpaid wages of $45 million since 2020, as it shortchanged approximately 600 salaried managers, due to the miscalculations of public holiday leave for several years. You can read more about this story here.

In light of these incidents, the government has introduced a bill to criminalise this practice. If this has passed into law, violators who will deliberately underpay their employees will be given a maximum penalty of 10 years’ imprisonment, and fines of up to $7.8 million.

Key Takeaways

• ALDI is facing a class action claim over alleged unpaid wages amounting to approximately $150 million.
• The Shop, Distributive and Allied Employees Association (SDA) alleged that ALDI forced employees to work up to 30 minutes before their shift without pay.
• Investigations suggest that the issue is not limited to a few workers or a few stores, but is a widespread practice within ALDI.
• In response to these incidents, the Australian government has proposed a bill to criminalise the practice, which could result in substantial fines and imprisonment.

What do you think of this story? Share your thoughts in the comments below!

 

[Veggiepatch]

It's a common practice for businesses to require staff to commence work before their "official" start time. All under the guise of "preparation" of the work area, handovers, etc.

It didn't wash with me. I arrived at work no more than five minutes before the start time.

If organisations wanted such tasks to be performed by staff, especially handovers, just overlap the shifts and recompense accordingly.

But oh no! That costs money.

 

[GOM1983]

Most workplaces expect you to be ready for work at the designated starting time, which may require some preparation time. I think most workers think it would be reasonable if that was just 5 or 10 minutes. But 30 minutes is not. When I worked at a large hardware store (guess who, lol) I always started 15 minutes early and usually stayed later if serving a customer - no extra pay. I didn't mind, as I quite enjoyed helping customers. But I was very upset when one of the managers started timing my breaks and would get into me if I was 1 or 2 minutes over. Then she said that I had to ask her permission before taking a break! All take, no give. I eventually left due to that attitude. My observation is that management's attitude toward workers became quite arrogant and uncaring when another corporation's bid at establishing a rival hardware chain failed. (Again, guess who?) With no competition, they feel that they can do whatever they want and can get away with it.

 

[Veggiepatch]

This raises another question.

If an employee is injured in the workplace in these "unofficial" work times, are they entitled to workers compensation?

Think about that.

 

[Gsr]

I work for a large hardware chain, guess who, some of the workers start an hour before we open to get the store ready, registers in, stock on display etc. they get paid for this time. At the end of the day however it is often 5/10 minutes after paid finishing time before the workers get to leave, often due to late minute customers wanting to shop. Usually this is not paid for. Most workers don’t complain as they don’t do the close shifts all the time due to rotating rosters.

 

[AlanQ]

I work for a large hardware chain, guess who, some of the workers start an hour before we open to get the store ready, registers in, stock on display etc. they get paid for this time. At the end of the day however it is often 5/10 minutes after paid finishing time before the workers get to leave, often due to late minute customers wanting to shop. Usually this is not paid for. Most workers don’t complain as they don’t do the close shifts all the time due to rotating rosters.

It's not the public service, it's a profit driven operation that is more answerable to it's shareholders than any employee. Not an uncommon practice for staff to clock on 15 mins and after rostered hours. Given most of the transactions are now done by unpaid 'customers' there little setup required.

 

[Suzanne rose]

Our boss always asked us to be 10 minutes early but that was so we would be ready to clock on at 9am.

If we ever came in to do any work thing then we were paid this included coming in early Friday mornings for a meeting .

Once a year we had a two hour general meeting , again we were paid.

Sometimes I stayed back up to an hour because of a bride going over time or a last minute walk in . But I got paid for it.

I understand bosses asking you to be 5 or 10 minutes early to make sure you are ready to start work on time.
We had someone who arrived exactly 9am and by the time she changed her shoes ect she was not on the floor until 9.10 am . Between 9 and 9 30 was the time to set up , arrange dresses ect

But to ask you to set up ect before or after work and on your own time without pay is so wrong . Your making money for them.

 

[Caly M]

There’s a lot of hard work that goes on behind the scenes of supermarkets to ensure that our shopping experiences are convenient and affordable.

However, it looks like discount supermarket chain ALDI is the latest target of a lawsuit, this time facing an enormous $150 million claim in unpaid wages it supposedly ‘systematically’ withheld from tens of thousands of its workers across the country.

The allegation came from the Shop, Distributive and Allied Employees Association (SDA)—Australia’s largest private trade sector union—who lodged the claim in Federal Court on Friday, 26 October.

The complaint claimed that employees were forced to work up to 30 minutes before the start of their shift without pay.

According to the union, tasks that were undertaken with no payment included emptying bins, checking communication devices, performing safety checks and cashing up the register— activities which they state have become a regular habit for staff across the country.

View attachment 33340

ALDI is facing another lawsuit against the SDA for unpaid wages amounting to $150 million. Credit: Unsplash

'We estimate that over 20,000 workers are owed $150 million in back pay, and we’re seeking proper compensation for impacted workers,' said the SDA.

Back in late 2022, the Federal Court determined that ALDI underpaid distribution workers in Sydney by making them start work up to 15 minutes before their shifts.

According to National Secretary Gerard Dwyer, ALDI’s alleged misconduct was ‘fundamentally unlawful and illegal.’

‘ALDI has had its chance to do the right thing and back pay workers after they lost the Federal Court case in NSW,’ Dwyer said.

‘They’ve fumbled the bag and failed to do it right by their workforce; now they have to face the consequences of these breaches… over $100 million has been ripped out of the pockets of workers and their families by this multi-billion-dollar corporation,’ he added.

The Australian Taxation Office (ATO) revealed in FY 2020-2021 that ALDI increased its revenue from $9.6 billion to $10.7 billion. ALDI also reported that its sales in the last quarter of 2022 increased by 13.2 per cent because consumers opted for the discounter to save money due to higher living costs.

Other major supermarket chains weren’t immune. Woolworths, for instance, was up against over 1,000 criminal charges brought on by Wage Inspectorate Victoria for allegedly failing to pay more than $1 million in long service leave. It was recently reported to have shortchanged workers by nearly $600 million in recent years.

In our previous article, Coles was estimated to owe its employees underpaid wages of $45 million since 2020, as it shortchanged approximately 600 salaried managers, due to the miscalculations of public holiday leave for several years. You can read more about this story here.

In light of these incidents, the government has introduced a bill to criminalise this practice. If this has passed into law, violators who will deliberately underpay their employees will be given a maximum penalty of 10 years’ imprisonment, and fines of up to $7.8 million.

Key Takeaways

• ALDI is facing a class action claim over alleged unpaid wages amounting to approximately $150 million.
• The Shop, Distributive and Allied Employees Association (SDA) alleged that ALDI forced employees to work up to 30 minutes before their shift without pay.
• Investigations suggest that the issue is not limited to a few workers or a few stores, but is a widespread practice within ALDI.
• In response to these incidents, the Australian government has proposed a bill to criminalise the practice, which could result in substantial fines and imprisonment.

What do you think of this story? Share your thoughts in the comments below!

Childcare centres exploit their “open” staff in the exact same way. Arrive 30 minutes prior to their shift to do outdoor safety inspections, and general set up for the whole centre WITHOUT pay!!

 

[Clancieblue]

This raises another question.

If an employee is injured in the workplace in these "unofficial" work times, are they entitled to workers compensation?

Think about that.

No ,they are not.

 

[Clancieblue]

Exactly what I was saying about aged care. To many tasks and not enough time.
Start at 6.30 and have breakfast cooked and dining room set by 7, ready for breakfast.
Impossible task.

 

[Suzanne rose]

Childcare centres exploit their “open” staff in the exact same way. Arrive 30 minutes prior to their shift to do outdoor safety inspections, and general set up for the whole centre WITHOUT pay!!

 

[Suzanne rose]

No ,they are not.

I'm sure they would be , you are covered for both paid and unpaid work. Which is why some companies won't take on work experience students , and the insurance premium cover is higher if you take on work experience students

 

[Liz]

When I worked, you often started before the official starting time and worked back late. You were given time in lieu. And we were covered by compensation from the time we left home till the time we got home. Gone are the days. This, I might add, was all before unions came in.

 

[Suzanne rose]

In NSW up until around 8 years ago you were covered by workers compensation if you were injured on your way to work or home .
I fell on the way to work , injured my knee bad but didn't claim compo , I still went to work the next day limping and in alot of pain including my hip.
Turns out it caused cartilage damage and I never claimed at all . It was a few months after this they changed to workers compo to not include going to and going home from work.

 

[MariaG]

There’s a lot of hard work that goes on behind the scenes of supermarkets to ensure that our shopping experiences are convenient and affordable.

However, it looks like discount supermarket chain ALDI is the latest target of a lawsuit, this time facing an enormous $150 million claim in unpaid wages it supposedly ‘systematically’ withheld from tens of thousands of its workers across the country.

The allegation came from the Shop, Distributive and Allied Employees Association (SDA)—Australia’s largest private trade sector union—who lodged the claim in Federal Court on Friday, 26 October.

The complaint claimed that employees were forced to work up to 30 minutes before the start of their shift without pay.

According to the union, tasks that were undertaken with no payment included emptying bins, checking communication devices, performing safety checks and cashing up the register— activities which they state have become a regular habit for staff across the country.

View attachment 33340

ALDI is facing another lawsuit against the SDA for unpaid wages amounting to $150 million. Credit: Unsplash

'We estimate that over 20,000 workers are owed $150 million in back pay, and we’re seeking proper compensation for impacted workers,' said the SDA.

Back in late 2022, the Federal Court determined that ALDI underpaid distribution workers in Sydney by making them start work up to 15 minutes before their shifts.

According to National Secretary Gerard Dwyer, ALDI’s alleged misconduct was ‘fundamentally unlawful and illegal.’

‘ALDI has had its chance to do the right thing and back pay workers after they lost the Federal Court case in NSW,’ Dwyer said.

‘They’ve fumbled the bag and failed to do it right by their workforce; now they have to face the consequences of these breaches… over $100 million has been ripped out of the pockets of workers and their families by this multi-billion-dollar corporation,’ he added.

The Australian Taxation Office (ATO) revealed in FY 2020-2021 that ALDI increased its revenue from $9.6 billion to $10.7 billion. ALDI also reported that its sales in the last quarter of 2022 increased by 13.2 per cent because consumers opted for the discounter to save money due to higher living costs.

Other major supermarket chains weren’t immune. Woolworths, for instance, was up against over 1,000 criminal charges brought on by Wage Inspectorate Victoria for allegedly failing to pay more than $1 million in long service leave. It was recently reported to have shortchanged workers by nearly $600 million in recent years.

In our previous article, Coles was estimated to owe its employees underpaid wages of $45 million since 2020, as it shortchanged approximately 600 salaried managers, due to the miscalculations of public holiday leave for several years. You can read more about this story here.

In light of these incidents, the government has introduced a bill to criminalise this practice. If this has passed into law, violators who will deliberately underpay their employees will be given a maximum penalty of 10 years’ imprisonment, and fines of up to $7.8 million.

Key Takeaways

• ALDI is facing a class action claim over alleged unpaid wages amounting to approximately $150 million.
• The Shop, Distributive and Allied Employees Association (SDA) alleged that ALDI forced employees to work up to 30 minutes before their shift without pay.
• Investigations suggest that the issue is not limited to a few workers or a few stores, but is a widespread practice within ALDI.
• In response to these incidents, the Australian government has proposed a bill to criminalise the practice, which could result in substantial fines and imprisonment.

What do you think of this story? Share your thoughts in the comments below!

It will only be a matter of time after the law suit that you see Aldi prices go up.
The arrogance of the company to insist people work on their own time. It wouldn't surprise me if some folk were stood down because they said, no, I have responsibilities at home before work time".
I would also suggest the management team are not paid hourly, but on a contract. So, they wouldn't care because it doesn't affect them.

 

[Macarj]

Childcare centres exploit their “open” staff in the exact same way. Arrive 30 minutes prior to their shift to do outdoor safety inspections, and general set up for the whole centre WITHOUT pay!!

If they are actually doing work they have to be paid

 

[Ronloby]

The thing is, If you have to start work at a set time you must be there READY to start at the given time. If one has to change into a uniform or other outfit prior to starting work then that time should be paid, not free time.

 

[Veggiepatch]

This raises another question.

If an employee is injured in the workplace in these "unofficial" work times, are they entitled to workers compensation?

Think about that.

Looking at the case in hand, Aldi is obliged to pay overtime to its employees for more than 15 minutes work performed before and/or after their shift as determined by an award, enterprise agreement or employment contract conditions. This implies that workers compensation MUST be paid to the employee for injury incurred while on the job. This may be different for other industries, dependent on the conditions of employment as mentioned above.

 

[Clancieblue]

In NSW up until around 8 years ago you were covered by workers compensation if you were injured on your way to work or home .
I fell on the way to work , injured my knee bad but didn't claim compo , I still went to work the next day limping and in alot of pain including my hip.
Turns out it caused cartilage damage and I never claimed at all . It was a few months after this they changed to workers compo to not include going to and going home from work.

Yes, and a staff member who slipped where I worked was told no one asked her to start before her time. However, it was common knowledge staff were doing this to complete tasks. She was not compensated for injury.

 

[magpie1]

worked for a Service Station for awhile...big brand....always opened at 5.30 every morning, but actually started 15-20 minutes earlier each day, filling watering cans and buckets of soapy water, hanging fire extinguishers up on driveway, pushing out oil trolleys and trolleys laden with packs of soft drink on weekly special outside of shop front, removing all locks on outside petrol pumps, counting out money for daily till on shift, filling hot food warming ovens with food from fridges, checking toilets for cleanliness etc....then would open up for daily trade.....all of that each day was unpaid, because I was already working maximum hours as a casual....had the total hours been added each week, then I would be classified as a permanent employee.....then paid with perks like 4 weeks full paid annual leave and paid sick leave and overtime, but no, so after 8 years told them to stick it......and retired.