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AAP
AAP
Derek Rose

Woolworths, Coles say underpayment costs could hit $1b

A court has ruled Australia's two biggest supermarkets underpaid some managers for years. (Luis Ascui, Joel Carrett/AAP PHOTOS)

Australia's two biggest supermarket chains may have to fork out more than $1 billion in repayments and other costs between them after a court ruled they underpaid thousands of salaried managers for years.

Friday's Federal Court ruling would also require "significant and widespread changes" to accepted retail practice for both Woolworths Group and Australian businesses, large and small, the company said on Monday.

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