A proposed settlement in the SDA’s ALDI Foods class action will finally resolve a long running dispute over what the SDA contended was unpaid work performed before and after rostered shifts.
The proposed settlement, which remains subject to final Federal Court approval, covers approximately 32,000 current and former ALDI store and warehouse employees across Australia.
Under the Class Action, ALDI has advised that it has already paid approximately $28.9 million. Under the proposed settlement methodology, the SDA estimates that approximately a further $26.3 million remains payable to affected workers.
As part of those further payments, ALDI has also agreed to pay interest on relevant amounts. Together with a separate $1.5 million contribution towards the SDA’s legal and project costs, the total value of the outcome is expected to be approximately $55 million, subject to final calculations and final Court approval.
No legal costs or litigation funding commission will be deducted from workers’ compensation.
SDA National Secretary Gerard Dwyer said the proposed settlement was a significant victory for ALDI workers and demonstrated the importance of strong, union-led enforcement.
“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.
“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.
“This outcome sends a clear message to every major employer: work performed before or after a rostered shift is still work, and it must be paid.”
Kelly Boi, Class Action Lead Applicant and former ALDI store employee 2016 to 2023, said:
“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. The proposed settlement also means I and thousands of other employees will receive a payment for pre and post shift work we performed in the past for no pay.
“I encourage every ALDI worker to join the SDA. 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.”
Media contact: Jim Middleton 0418 627066
Background
The history of the case
The dispute followed an earlier SDA case concerning employees at ALDI’s Prestons Distribution Centre in New South Wales.
In 2022, the Federal Circuit and Family Court agreed with the SDA and found that tasks performed by four warehouse employees before the commencement of their rostered shifts constituted work and that the employees were entitled to be paid for that time.
ALDI reviewed pre-shift work performed by some warehouse employees and made payments to some current employees and former employees who applied for payment.
The SDA class action was commenced in the Federal Court in October 2023 on behalf of what the SDA contended were similarly impacted store and warehouse employees nationally.
The settlement is made without admissions by ALDI and remains subject to final approval by the Federal Court.
Workers covered
The proposed settlement applies to eligible current and former:
store employees;
Store Managers and Assistant Store Managers; and
warehouse employees.
The claims concern what the SDA contends was unpaid work performed before rostered shifts and, for store employees, after rostered shifts.
Court approval process
Workers are not presently required to register for payment. A formal registration process for former employees will commence later if the Court grants final approval.
Further information will be available at: https://www.sda.au/campaigns/aldi-class-action/