ALDI is on the hook for MILLIONS in compensation after allegedly underpaying warehouse workers
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ALDI has long been a household name in Australia for a reason. The German supermarket chain has built a reputation for being a no-frills supermarket that offers lower prices than its competitors – and what could be more satisfying than scoring a bargain on your groceries?
However, a recent development has cast a shadow over ALDI’s image. Could this be the end of its golden era?
The mega-retailer could be held liable for millions of dollars in compensation after a Federal Court judge found it had been underpaying its warehouse workers. ALDI has allegedly breached employment laws by forcing employees to begin work 15 minutes before their rostered starting time.
Workers at a Sydney distribution centre were forced to undertake several tasks before clocking in, including completing safety checks on forklifts, checking communication devices, and taking part in a warm-up activity.
ALDI found itself in hot water after allegedly ‘underpaying’ its workers. Source: InDaily
ALDI claimed that it was not underpaying its workers and that it only expects its employees to work at the start of their rostered shifts.
But Judge Douglas Humphreys argued he was convinced there was a ‘clear implied direction’ that employees were made to arrive early and complete their ‘warm up tasks’, which could also potentially warrant disciplinary action if the employees fail to comply.
‘There was no personal benefit to the employee in the activities carried out. Each was to the benefit of the employer.’ Judge Humphreys stated.
‘In these circumstances, the court is satisfied that the activities carried out constitute work.’
The SDA retail and warehouse union claimed that ALDI owes its distribution centre workers up to $10 million in unpaid wages for working an extra 10 minutes per shift.
It says the decision could affect roughly 4000 current and former workers. This was disputed by the supermarket giant.
The company said it respected the court’s decision and was determining the payment owed to four employees directly impacted by the proceedings.
The court declared ALDI liable for up to a million dollars in compensation. Source: ALDI
‘We are reviewing the implication of the court’s decision on other employees across our business and will seek to apply the principles of the court’s decision fairly to any other affected employees.’ an ALDI spokesperson detailed.
‘The numbers quoted by the SDA are significantly inflated and are not representative of the number of employees that we believe are impacted by the decision.’
The SDA said it was still working through calculating individual back-pay amounts for its members.
‘ALDI joins a long list of large employers found to have underpaid their workers,’ NSW branch Secretary Bernie Smith disclosed.
‘Unlike the way the multinational likes to present itself in its advertisements, it turns out ALDI is not good or different. Multinational companies operating in Australia can’t set their own rules.’
Judge Humphreys is yet to make any orders regarding penalties. The parties are set to return to court on Friday for a directions hearing.
What are your thoughts about this article? Should ALDI compensate its employees for being ‘forced’ to work before their starting time or is the penalty unreasonable? Have you encountered this in your workplace before? Let us know in the comments.
However, a recent development has cast a shadow over ALDI’s image. Could this be the end of its golden era?
The mega-retailer could be held liable for millions of dollars in compensation after a Federal Court judge found it had been underpaying its warehouse workers. ALDI has allegedly breached employment laws by forcing employees to begin work 15 minutes before their rostered starting time.
Workers at a Sydney distribution centre were forced to undertake several tasks before clocking in, including completing safety checks on forklifts, checking communication devices, and taking part in a warm-up activity.
ALDI found itself in hot water after allegedly ‘underpaying’ its workers. Source: InDaily
ALDI claimed that it was not underpaying its workers and that it only expects its employees to work at the start of their rostered shifts.
But Judge Douglas Humphreys argued he was convinced there was a ‘clear implied direction’ that employees were made to arrive early and complete their ‘warm up tasks’, which could also potentially warrant disciplinary action if the employees fail to comply.
‘There was no personal benefit to the employee in the activities carried out. Each was to the benefit of the employer.’ Judge Humphreys stated.
‘In these circumstances, the court is satisfied that the activities carried out constitute work.’
The SDA retail and warehouse union claimed that ALDI owes its distribution centre workers up to $10 million in unpaid wages for working an extra 10 minutes per shift.
It says the decision could affect roughly 4000 current and former workers. This was disputed by the supermarket giant.
The company said it respected the court’s decision and was determining the payment owed to four employees directly impacted by the proceedings.
The court declared ALDI liable for up to a million dollars in compensation. Source: ALDI
‘We are reviewing the implication of the court’s decision on other employees across our business and will seek to apply the principles of the court’s decision fairly to any other affected employees.’ an ALDI spokesperson detailed.
‘The numbers quoted by the SDA are significantly inflated and are not representative of the number of employees that we believe are impacted by the decision.’
The SDA said it was still working through calculating individual back-pay amounts for its members.
‘ALDI joins a long list of large employers found to have underpaid their workers,’ NSW branch Secretary Bernie Smith disclosed.
‘Unlike the way the multinational likes to present itself in its advertisements, it turns out ALDI is not good or different. Multinational companies operating in Australia can’t set their own rules.’
Judge Humphreys is yet to make any orders regarding penalties. The parties are set to return to court on Friday for a directions hearing.
What are your thoughts about this article? Should ALDI compensate its employees for being ‘forced’ to work before their starting time or is the penalty unreasonable? Have you encountered this in your workplace before? Let us know in the comments.
