Four Chemist Warehouse franchisees in South Australia have been found to have underpaid staff, in a ruling which could potentially cost the pharmacy retailer millions.
The decision, made in a test case before the South Australian Employment Tribunal – following proceedings brought forward by the Shop, Distributive and Allied Employees’ Association (SDA Union) – came after a review of the retailer’s implementation of the Pharmacy Award.
This award states that, as level three employees, workers at Chemist Warehouse must be paid a minimum 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,” the SDA said.
The discrepancy between the pay rates could amount to around $60 per week, SDA added.
It has been touted as a potentially “far-reaching” ruling for Chemist Warehouse, with the SDA theorising that examining pay rates beyond the Clovelly Park, Colonnades, Elizabeth City Centre and Modbury stores could lead to more than $10 million in compensation for impacted workers.
Inside Retail sought comment from Chemist Warehouse on the ruling and on whether it was aware of potential underpayments elsewhere in its nationwide store network, but the company declined to comment.
“This ruling has serious implications for Chemist Warehouse stores right across the country,” said SDA SA secretary, Josh Peak. “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.”
Peak alleged that it exposes a “systemic problem” at Chemist Warehouse, describing it as part of a “nationwide issue”. At this moment, however, no proceedings have been brought forward to examine wider allegations.
