Romeo’s settles class actions accusing it of underpaying workers

By Dean Blake | 29 Nov 2021 View comments

Independent superrmarket retailer Romeo’s, which runs IGA and Foodland stores around the country, has reportedly settled two class action lawsuits which allege the business underpaid staff, according to Lawyerly.

Adero Law, which brought the two class action forward on behalf of approximately 700 Romeo’s staff across New South Wales and South Australia, said in an application to the Federal Court Romeo’s will pay $825,000 in costs.

The settlement also involves a further fixed payment to 175 staff, and the opportunity for payments for the remaining ~525 members. Further details of the settlement are unknown, however, and are being kept confidential.

According to Lawyerly, Romeo’s will pay the costs in recognition of the fact that the business is cognisant that employees had concerns around how they were being paid, and that Romeo’s regrets any inconvenience this caused.

Though the final details of any payment are currently unknown, an ABC report said the claims, which date back to 2014, could cost Romeo’s up to $20 million.

At least one worker said they had been underpaid by $60,000 throughout their five-year employment at Romeos.

According to the report, Romeo’s chief executive told the ABC the allegations were “not relevant” and refused to comment further.

This article was first published on Inside FMCG, a sibling website to Inside Franchise Business Executive.

  • Earlier this year the Romeos Group unveiled its European-style food hall Locali, in Sydney’s George Street, and opened a second outlet at the new retail zone Brookfield Place, near Wynyard Station.