Chemist Warehouse is the first retailer ordered to negotiate a union agreement for its staff under the new multi-employer bargaining regulations, after the Fair Work Commission found a majority of employees across 13 stores in South Australia supported the move, the AFR reports.

According to the masthead, 300 staff employed by six franchisees in the state backed the Shop Distributive and Allied Employees Association wage-bargaining initiative. The staff are employed as casuals, and paid the award minimum.

The Fair Work Commission’s order could lead to the union coralling other Chemist Warehouse stores across Australia into the resulting agreement.

In April, when the SDA union filed its application in South Australia, SDA secretary Josh Peak said “We believe the employees of the country’s largest pharmacy conglomerate should be able to bargain together.”

The SDA application seeks to negotiate a collective agreement based on a Single Interest Employer Authorisation, which recognises franchisees have a common interest as employers.

Franchisees must consent to any union deal within a nine-month bargaining period or the Fair Work Commission will arbitrate a decision.

Chemist Warehouse merged with Sigma Healthcare earlier this year. The AFR suggests the single-interest bargaining decision could lead to union bargaining at other Sigma brands – Amcal, Discount Drug Stores, Guardian and PharmaSave.

• This story was originally published on Franchise Executives.