Australia’s Union the Shop, Distributive and Allied Employees Association (SDA) has secured A$5.5m ($3.6m) in backpay for more than 500 current and former regional supermarket workers across South Australia.
This outcome follows a four-year legal struggle with Eudunda Farmers and its subsidiaries, resulting in reimbursement for systematic underpayment across 23 supermarkets.
Most of the supermarkets involved in the underpayment issue were from the Foodland chain. However, not every Foodland store in South Australia has been implicated in the underpayment of workers, as reported by ABC News.
Eudunda Farmers underpaid workers by engaging in practices such as assigning workers to a lower classification than legally required, failing to pay correct overtime rates, neglecting mandatory allowances, breaching minimum shift length requirements and underpaying salaried staff for their hours worked.
Out of the total of A$5.5m in backpay, the average amount per worker is close to A$11,000. One employee is receiving more than A$145,000, and an additional 16 will receive above A$50,000.
Eudunda Farmers operates 20 supermarkets in regional South Australia and employs 700 locals.
The company’s presence extends from Clare and Port Augusta to Barmera and Bordertown.
The SDA initially uncovered the systemic underpayments in 2020, identifying breaches of the General Retail Industry Award at several Eudunda Farmers Supermarkets. The issues ranged from worker classifications to salaried work, overtime and allowances.
In 2021, the SDA filed a federal court claim on behalf of 64 workers, initially seeking A$1m in backpay.
As the case unfolded and more workers came forward, the magnitude of the underpayments grew, with the total owed to workers now quintupling the original claim.
SDA stated: “This case is proof of how powerful and effective we can be when we stand up together.”
In mid July 2025, the SDA also submitted applications targeting McDonald’s and its franchisees nationwide to empower their 115,000 employees with collective bargaining rights for improved wages and conditions.
This move follows the Fair Work Commission’s groundbreaking ruling that approved the SDA’s supported bargaining authorisation application for 5,000 McDonald’s workers across 18 employers and 53 restaurants in South Australia.
The supported bargaining legislation, introduced by the Albanese government, is designed to assist low-paid workers with shared interests in gaining access to collective bargaining opportunities.
“500 supermarket workers in South Australia gain $3.6m in backpay” was originally created and published by Retail Insight Network, a GlobalData owned brand.
