Industrial relations

Guardian Australia has spoken with several young workers and families who feel their teenagers were pressured to join the Shop, Distributive and Allied Employees’ Association (SDA) in their first days on the job, including a 14-year-old who was recruited in mid-2024 on her first shift at Hungry Jack’s.

[…]

Lachlan, said he got a text from the union around the time his daughter Sarah was signed up, but he did not believe that was sufficient. Lachlan is a union member himself, but in his view the SDA organiser’s manner left no room for his daughter to say no.

He said it was not the right approach for a 14-year-old first-time worker: “I support the unions, but I don’t support predatory tactics.”

He said Sarah is now a member of the Retail and Fast Food Workers Union (RAFFWU), an upstart union that formed in 2016 in opposition to the SDA.

[…]

In the mid-2010s, a series of reports in the Age detailed how part-time workers at McDonald’s, Coles and other retail employers were being underpaid due to deals negotiated by the union, leading to accusations of a “cosy” relationship between the SDA and employers. “[The SDA] has always bargained in the best interests of workers within the industrial relations framework at the time,” the union said at the time.

A number of SDA-brokered deals between workers and employers came under scrutiny at the time. Its 2015 deal with Coles, for example, had to be remedied after the Fair Work Commission decided it failed the “Better-Off Overall Test” (BOOT) because a cut in penalty rates had left a substantial number of workers worse off.

Supermarket giants Coles and Woolworths expect to spend hundreds of millions of dollars more to repay staff the companies underpaid, following a legal judgement experts say could have wide-reaching implications.

Woolworths has flagged potential additional costs topping $500 million after tax, while Coles has put its preliminary estimate at up to $250 million.

The development could see the total cost of the underpayment scandal soar past $1 billion, with Woolworths having already repaid $330 million to thousands of staff, while Coles has repaid $31 million so far, and had set aside a further $19 million before Monday's extra provision.

On Friday, the Federal Court handed down a judgement on the historical underpayments of employees at the two major supermarkets, affecting nearly 30,000 employees.

The dispute centred on annual salary arrangements, where the employees were paid above the award rate over the year, in place of calculating actual entitlements — under what was known as a "set-off" arrangement.