Chemist Warehouse faces $10million lawsuit after allegedly underpaying pharmacy workers
- Four SA Chemist Warehouses allegedly underpaid staff
- SDA has taken legal action
Chemist Warehouse could be forced to backpay up to $10million after allegedly underpaying staff.
The South Australian branch of the Shop, Distributive and Allied Employees Association (SDA) has taken legal action against owners of four of the chemist giant’s South Australian franchises in the SA Employment Tribunal.
The stores effected are in Colonnades, Elizabeth City Centre, Modbury and Clovelly Park.
Owners of four Chemist Warehouse franchises in South Australia allegedly underpaid staff
Nine workers across the stores claimed they were paid to complete a Certificate III in Community Pharmacy but were underpaid once they started performing higher duties.
The SDA has claimed the lawsuit could affect 1,000 employees across 350 Chemist Warehouse stores around the country.
The nine workers have claimed $5,000 each in underpayment but the SDA claims this could amount to $600,000 within SA and $10million nationwide if proven.
The retailer had paid for staff to complete the certificate but allegedly failed to pay them accordingly once they started working in higher duties such as handing out medicine.
‘We’re alleging that Chemist Warehouse knowingly ripped thousands out of the pockets of its employees by directing them to work above their classification level,’ SDA SA secretary Josh Peak said.
‘This isn’t a mistake or an oversight, it’s another shocking example of wage exploitation by a national brand.’
The franchisees have denied the allegations and say the workers were promoted to level two positions, not level three.
A spokesperson for the company said that Chemist Warehouse itself was not a party to the proceedings with the SDA.
They said after speaking to the franchisees they ‘reject the allegation of any underpayment and will defend their position vigorously’.
‘Beyond this, as the matter is before the tribunal, neither the franchisees nor Chemist Warehouse will make further comment – as is standard practice.’
The matter will go to trial in August this year.
