Kroger pays $4m for pharmacy jobs after losing job for two weeks
A supermarket chain has been awarded $4 million by a court to pay workers in Australia’s pharmacy industry to help them resume their work after they were laid off by its former employer.
Key points:The Kroger pharmacy jobs deal will help restore a livelihood for workers in the retail sectorKroger said it had paid the workers at least $7.6mThe workers were paid $1,200 for each day they were on the job for one yearThe court ruled that workers were owed compensation for the loss of their jobsThe deal was struck after a three-week trial which saw a judge hear submissions from more than 1,000 workers who claimed their jobs had been lost because of their work at Kroger.
The court heard that some workers at the supermarket chain lost their jobs due to redundancy policies and redundancy letters, which were later rescinded.
Krogasm is a national chain of grocery stores with a market share of about 16 per cent.
It’s owned by Kraft Foods, which owns the likes of McDonalds and Kraft’s burger chain.
The trial, which saw more than 2,000 submissions from about 1,600 workers, heard that about 10 per cent of its staff were laid-off.
Kraft said the company was disappointed the workers’ claims had not been fully heard in the court and that it would continue to defend its position.
Kobell & Sonesta, a Melbourne-based law firm representing the workers, said the court ruling could have a significant impact on Kroger’s ability to resume its work.
“This could have major consequences for the Kroger business, especially as it faces a critical need to boost profits in the short term to keep up with consumer demand,” Mr Kobell said.
“As the world’s largest grocer, Kroger has to do everything in its power to retain its workforce, especially in light of the new climate of uncertainty.”
Krogers decision to appeal against the judgment could have significant ramifications for its long-term future.