Woolworths Seeks Urgent Intervention as Strike Causes $50m Loss and Empty Shelves

December 6, 2024
Woolworths Seeks Urgent Intervention as Strike Causes $50m Loss and Empty Shelves
  • Woolworths has filed an urgent application with the Fair Work Commission to prevent the United Workers Union (UWU) from blocking access to its Dandenong distribution centre amid ongoing industrial action.

  • The strike, initiated by the UWU due to unsuccessful negotiations, has seen over 1,500 workers walk off the job indefinitely, demanding improved pay and working conditions.

  • This two-week strike has led to empty shelves at Woolworths, affecting four distribution centres in Victoria and causing disruptions at several Dan Murphy's and BWS stores.

  • The industrial action has resulted in widespread shortages across supermarkets and bottle shops in Victoria, New South Wales, and the Australian Capital Territory.

  • Woolworths has reported a significant sales decline of $50 million since the strike began, with further financial impacts expected until a resolution is reached.

  • Approximately 40% of Woolworths' distribution capacity has been disrupted, leading to an estimated loss of eight to nine million tonnes of goods.

  • During the FWC hearing, the situation was likened to having a 'gun to the head' of Woolworths, highlighting the pressure the company is under due to the picketing.

  • Marc Felman KC, representing Woolworths, stated that the UWU's picketing at four Primary Connect distribution centres has severely hindered the company's ability to deliver goods.

  • Tim Kennedy, the UWU national secretary, emphasized that the union has been bargaining in good faith and urged Woolworths to focus on reaching an agreement to restore operations before Christmas.

  • While another union, the Shop, Distributive and Allied Employees’ Association, has reached a new agreement with Woolworths, the UWU has raised concerns over a proposed productivity framework for warehouse staff.

  • Scott Paterson from Woolworths reported that stores began closing on November 21 due to safety concerns and workforce shortages caused by the union's actions.

  • Hugh Crossthwaite, representing the UWU, is scheduled to respond to Woolworths' application on December 6, 2024, as the hearing continues before deputy president Gerard Boyce.

Summary based on 2 sources


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Sources


Picket is ‘gun to head’ of Woolies

news.com.au — Australia’s leading news site • Dec 5, 2024

Picket is ‘gun to head’ of Woolies

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