Share this @internewscast.com
Allegations of rampant employee underpayment at Coles and Woolworths that affected almost 30,000 staff remain unresolved two years after a lengthy trial.
On Friday, the Federal Court handed down a judgment on four cases against the supermarket giants after a watchdog argued there was tacit approval of illegal conduct in many stores.
Woolworths and Coles have repaid $330 million and $7 million respectively to managers who were not properly paid entitlements due to them as salaried employees, justice Nye Perram said.
But the Fair Work Ombudsman and former grocery store employees behind two class actions say the market leaders should be forced to pay more.
The watchdog argued the relevant award set out a 38-hour work week, but there was tacit approval to allow people to work overtime regularly.
It says there were failures in the use of “informal” rosters, time off in lieu and record-keeping on overtime, penalties and allowances.

According to Woolworths, some employees were authorized to work up to 45 hours a week without being required to do overtime beyond that limit.

People walking in and out of a Woolworths supermarket.

Woolworths has already compensated $300 million to managers who were not appropriately paid their entitlements. Source: AAP / Con Chronis

Coles argued managers had autonomy over their hours, and the estimates of working hours and days were overestimated by the Fair Work Ombudsman.

Perram found both supermarket chains did not comply with their obligation to keep accurate employment records.
He noted Coles failed to operate an overtime system for managers and its clocking records were unreliable.
One of the lead litigants, who mostly managed the customer service desk, likely worked on days when she was not rostered, so roster sheets were not indicative of the hours worked, the judge said.
Her phone records could better demonstrate when she was at work, the judge found, while dismissing Coles’ arguments she had not missed unpaid meal breaks.

The woman whose wages were reduced for wearing Coles-branded clothing was entitled to receive a clothing and laundry allowance.

‘Unacceptably complex’

The judge used his 82,000-word judgment to criticise all sides, including the Fair Work Ombudsman, for making the case “unacceptably complex”.
The parties mainly wanted answers about how the general retail award applied, but got bogged down presenting myriad case studies to the court.
The ombudsman’s case against Woolworths involved 32 managers at five locations across Sydney, Melbourne and Brisbane from June 2015 to September 2019.

The case involving Coles concerned 42 managers, some working in several locations, from 2017 to 2020.

The exterior of a Coles supermarket.

Coles did not have an effective overtime system for managers and had unreliable clocking records, as stated by justice Nye Perram. Source: AAP / Con Chronis

“Whilst I would not wish to [be] definitive about how litigation of this kind might be handled in the future, I am confident that they should not be handled the way these four cases were,” Perram said. “This should not be done again.”

A case management hearing will be held in October to address the next steps and compensation for the 27,700 affected employees.

Coles and Woolworths respond

In a statement, Coles said that it has now paid $30 million in remediation to affected employees.
said it hoped Perram’s judgment would provide “much-needed clarification” on the industry award and Fair Work Act.
“We [have] introduced new processes and safeguards to ensure this won’t happen again,” a spokesperson said.
“We again apologise to our team members who were affected.”
Woolworths pointed to the remediation paid to affected employees and said further payments would need to be scrutinised carefully.
“We are focused on resolving these underpayment issues,” chief executive Amanda Bardwell said.
“We are committed to ensuring that our team members are paid correctly.”
Friday’s decision would also provide guidance to other employers and workers affected by the general retail award, particularly those on annualised salaries, the Fair Work Ombudsman said.
The watchdog is seeking both rectification of underpayment as well as penalties against Coles and Woolworths.

Share this @internewscast.com
You May Also Like
Graham Richardson arriving  at Hotel Realm for the Labor Fundraiser.

Prominent Labor Figure Graham Richardson Passes Away at 76

Graham Richardson, a notable figure who played key roles as a former…
Scotland skipper Sione Tuipulotu shows off his country's commemorative jersey for the Murrayfield Test against the All Blacks

Scotland Skipper Tuipulotu Rallies Team Spirit Ahead of Epic Showdown Against All Blacks: 67,000 Fans Expected!

Scotland’s captain, Sione Tuipulotu, is rallying his squad to seize the moment…

Denmark Joins Australia: Pioneering Youth Social Media Restrictions for Safer Digital Spaces

Prime Minister Anthony Albanese has said it’s “important” the country’s social media…
Young racegoers are seen in the rain during Champions Day at Flemington Racecourse.

Sudden Temperature Shift Takes Aussie City by Surprise

Wild weather has lashed Melbourne on the final day of the Melbourne…
James Bond film director Lee Tamahori who also worked with Alec Baldwin and Melanie Griffith dies at 75 after long illness

Veteran Director Lee Tamahori, Known for James Bond and Collaborations with Alec Baldwin and Melanie Griffith, Passes Away at 75 Following Prolonged Illness

Renowned filmmaker Lee Tamahori has passed away at the age of 75…

Princess Anne Set to Visit Australia Amidst Prince Andrew’s Title Removal Controversy

Princess Anne is set to land in Australia in one of the…
Wayne Hunt

Heartfelt Apology: Prison Nurse Addresses Family After Inmate’s Tragic Death

In an emotional moment at an inquest, a prison nurse has issued…
Parilla Fresh has recalled multiple products over Salmonella fears.

Urgent Recall: Popular Salad Brand Linked to Salmonella Outbreak Sickening 44 – Is Your Health at Risk?

Alfalfa sprouts have been pulled from supermarket shelves across the country amid…
Famed film director Lee Tamahori has died at home in New Zealand at the age of 75. The Hollywood stalwart had been battling Parkinson's disease, his family revealed to New Zealand's public broadcasting company on Friday. 'His legacy endures with his whānau, his mokopuna, every filmmaker he inspired, every boundary he broke, and every story he told with his genius eye and honest heart,' his family told RNZ.

Legendary James Bond Director Lee Tamahori Passes Away at 75 After Battling Illness

Renowned filmmaker Lee Tamahori has passed away at the age of 75…
A 37-year-old man is fighting for life after being stabbed while sitting in his car in Melbourne's south-east. The 37-year-old drove away from the 52-year-old when he collided with another car at an intersection about two kilometers away in Cranbourne North.

Suspect Apprehended in Connection with Stabbing Incident in Melbourne’s South-East

A 37-year-old man is fighting for life after being stabbed in his…
Inmate mistakenly released from London prison arrested

Escaped Inmate Recaptured: London Prison’s Mistaken Release Sparks Security Review

A convicted sex offender who was mistakenly released early from a London…

Palestinian Militants Release Israeli Hostage’s Body in Tense Exchange

Israeli Prime Minister Benjamin Netanyahu’s office said a coffin carrying the remains…