The SDA – South Australia’s largest union – has won a pivotal underpayment case in South Australia which could deliver tens of millions of dollars in backpay for Chemist Warehouse workers across Australia.
In a test case before the South Australian Employment Tribunal, four Chemist Warehouse stores were found to have misclassified and underpaid workers who were required to hold a Certificate III in Community Pharmacy.
Under the Pharmacy Award (which outlines the minimum pay and conditions at Chemist Warehouse), workers holding this qualification must be paid as a Level 3 Employee, which attracts an hourly rate of $28.12.
Instead, workers were directed to obtain a Certificate III in Community Pharmacy and perform higher work duties, but were paid at Level 1 or Level 2 rates of $26.55 and $27.16 an hour respectively.
As a result, impacted workers have been underpaid $1.57 per hour, approximately $60 a week.
The test case was pursued by the SDA on behalf of seven employees across the Clovelly Park, Colonnades, Elizabeth City Centre and Modbury stores.
This ruling could have far-reaching consequences for Chemist Warehouse, and could lead to more than $10 million in compensation for impacted workers. A further hearing is scheduled for July 2026.
This decision follows the SDA’s successful application to negotiate a multi-employer agreement at these four stores, along with nine other Chemist Warehouse stores in South Australia.
Quotes attributable to Josh Peak, SDA SA Secretary:
“This ruling has serious implications for Chemist Warehouse stores right across the country.”
“Chemist Warehouse workers could be owed tens of millions in backpay if they’ve been directed to work above their assigned classification.”
“These workers were required to obtain a qualification and do complex tasks above their classification level, including dispensing medication, but this simply wasn’t reflected in their pay.”
“This is a systemic problem at Chemist Warehouse. It’s not isolated to a few pharmacies doing the wrong thing, it is a nationwide issue.”