A newly proposed settlement in a class action lawsuit against discount supermarket giant Aldi would take its overall payments above $55 million.
Brought forward by the Shop, Distributive and Allied Employees’ Association (SDA Union), the case alleges that around 32,000 current and former Aldi employees have conducted work both before and after rostered-on shifts without pay.
The case began in the Federal Court in October 2023, following a 2022 investigation into Aldi’s Prestons Distribution Centre, NSW. The supermarket says it has already paid around $28.9 million; the proposed settlement claims that a further $26.3 million is due.
These further payments would also require a separate $1.5 million payment to cover the SDA’s legal costs. Final calculations are subject to court approval.
“This is a major result for tens of thousands of current and former ALDI workers. All workers should be paid for every minute they are required to work,” said SDA national secretary Gerard Dwyer.
“The SDA backed workers from the beginning, funded this class action and pursued the case so that workers would receive the benefit of the outcome. Almost $29 million has already been paid, and more than $50 million in total payments should be delivered to workers under this settlement.”
Aldi has agreed to the settlement without admitting guilt. In previous years, it has claimed that the underpayment issues were isolated and not systemic.
“I am proud that Aldi workers stood together and pursued this case. Work before and after shifts is now properly recognised and paid, making work at Aldi better,” Kelly Boi, former Aldi store employee from 2016 to 2023. “The proposed settlement also means thousands of other employees and I will receive a payment for pre- and post-shift work we performed in the past for no pay.”
“This case proves that when workers are union members and act collectively, we have the strength to take on major employers and get an outcome.”
A formal registration process for former employees seeking repayment will begin if the court grants final approval.
