THE LAST QUARTER
Romeo ’ s underpayment settlement under wraps
The supermarket franchisor was alleged to have underpaid hundreds of staff members .
BY DEAN BLAKE
Supermarket franchisor 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 actions forward on behalf of approximately 700 Romeo ' s staff across NSW 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 approximately 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 Romeo ’ s .
According to the report , Romeo ' s chief executive told the ABC the allegations were “ not relevant ” and refused to comment further .