South Australian Supermarket Workers Secure $5.5 Million in Settlement

More than 500 current and former supermarket workers in regional South Australia will receive a total of $5.5 million in back pay following a significant court settlement that the Shop, Distributive and Allied Employees' Association (SDA) has heralded as one of the largest retail underpayment settlements in the state's history. The settlement, reached between Eudunda Farmers Limited (EFL) and its subsidiaries, was announced on July 6, 2025, and involves workers from 23 regional supermarkets, primarily under the Foodland brand.

The dispute originated when 64 employees brought their case to the Federal Court in 2021, alleging underpayment and misclassification. Initially, these workers sought approximately $1 million in back pay. However, as the case progressed and more employees joined the claim, the total amount owed ballooned to $5.5 million. Josh Peak, South Australian Secretary of the SDA, confirmed that the union was unwavering in its stance, insisting that the settlement adequately reflects what the workers were owed.

"It's one of the biggest retail underpayment settlements ever achieved in South Australian history," Peak stated, emphasizing the importance of fair pay for workers. On average, each member of the workforce affected will receive nearly $11,000, with some individuals expected to receive in excess of $145,000.

Tahlia Troeth, a former employee at the Kingston South East Foodland, described the settlement as a "huge validation" for the workers. Troeth, who worked at EFL for five years, noted that she was misclassified and underpaid, receiving a level three wage instead of the level five wage she was entitled to. "The underpayment of workers is disappointing for the entire Kingston SE community," she commented, highlighting the supermarket's integral role in the local economy.

The SDA argued that EFL misclassified workers, incorrectly paid overtime and allowances, and breached minimum shift rules over a six-year period. Peak explained that many workers were erroneously classified at a lower wage level than warranted, resulting in pay discrepancies of up to $5 an hour below the legal minimum.

In a joint statement, EFL acknowledged the underpayment issues raised in court and confirmed that they have since reviewed workers' classification levels and increased their pay to comply with award requirements. Franklin Dos Santos, CEO of Foodland Supermarkets, expressed regret for the inconvenience caused and emphasized the company's commitment to rectifying past discrepancies. "We are working closely with our employees and the SDA to resolve these issues as a priority," he stated.

The settlement marks the culmination of a four-year legal battle, with implications not only for the affected workers but also for the broader regional economy. Peak noted that restoring this money to workers will significantly benefit local communities, allowing them to reinvest in their households and contribute to the local economy. "We have to wonder what family holidays were missed out on, what was sacrificed because workers weren’t getting their legal minimum to start with," he said.

The resolution of this case serves as a critical reminder of the ongoing issues surrounding worker rights and fair compensation within Australia’s retail sector. With this settlement, the affected workers can begin to receive the financial restitution they deserve, strengthening the argument for continued vigilance against underpayment practices in the industry.