UPDATE 2-Australia's Woolworths hit with class action for alleged staff underpayments | Health
Summary
Australian grocery giant Woolworths announced Monday that class action proceedings have been filed against it in Federal Court, alleging underpayments to team members in South Australia. The claim, brought by Shine Lawyers, centers around a repealed South Australian law concerning public holidays on Sundays. This follows a previous legal action filed by Dutton Law regarding similar underpayment allegations. Woolworths maintains the action isn't market-sensitive and intends to defend the proceedings.
The company has already set aside A$180 million to A$330 million (approximately $119.65 million to $219.8 million USD) to cover potential liabilities from historical staff underpayment issues, following a preliminary review. The Fair Work Ombudsman (FWO) has also initiated proceedings against both Woolworths and Coles, the country’s largest grocery chains, regarding worker underpayments.
Following the news, Woolworths shares experienced a decline, falling as much as 2.5% to A$28.83, reaching their lowest point since late November.
(Source:Devdiscourse)