Woolworths announces a breakthrough in resolving industrial action that disrupted distribution centres, alleviating empty shelves for customers in Victoria, NSW, and the ACT
Woolworths Reaches Landmark Enterprise Agreement with Striking Workers, Ending 17-Day Disruption
Supermarket giant Woolworths has announced a significant breakthrough in resolving the industrial action that disrupted operations across key distribution centres, leaving customers in Victoria, NSW, and the ACT facing empty shelves.
After 17 days of strikes that crippled supply chains, Woolworths reached a new enterprise agreement with the United Workers Union (UWU) and the Shop, Distributive and Allied Employees’ Association (SDA). The deal ensures the immediate reopening of its Melbourne South Regional Distribution Centre, with other affected sites, including the Melbourne Liquor Distribution Centre, Wodonga Regional Distribution Centre, and Erskine Park Distribution Centre, expected to follow suit.
Impact of the Strike
The industrial action, involving 1,500 workers, caused significant disruption, reducing distribution capacity by approximately 40% and impacting an estimated two million cartons. Woolworths reported a staggering $50 million loss in sales as a result of the strike, which led to stock shortages in stores across multiple regions.
CEO’s Response
Woolworths CEO Amanda Bardwell expressed gratitude to customers and employees for their patience and hard work during this challenging period.
“We sincerely apologise to our customers for the inconvenience caused in recent weeks. We appreciate their understanding and patience. I would also like to thank the teams across Woolworths Group who worked tirelessly to minimise disruptions and take care of our customers,” Bardwell stated.
Key Concessions and Worker Wins
The new agreement includes significant worker-friendly changes, particularly regarding performance metrics. The UWU criticized the company’s controversial “Framework” system, which allegedly penalized workers for not meeting high productivity standards.
Picketing workers held signs reading, “We are not robots!” to protest the system. In the final agreement, Woolworths conceded to introduce new clauses that eliminate automatic disciplinary actions based on work speed. The union hailed this as a victory for worker well-being in the age of AI surveillance and algorithm-driven performance systems.
Tim Kennedy, the national secretary of UWU, emphasized the broader implications of the victory, stating,
“This dispute was about safeguarding workers’ rights and well-being as we transition into an AI-dominated era of work. Breaking the link between productivity metrics and automatic discipline is a landmark achievement that respects the fundamental humanity of workers.”
Wage Increases and Benefits
The SDA highlighted the financial benefits secured in the agreement, including:
- A 12.84% wage increase over three years
- A $1,000 upfront cash payment
- Increased weekend penalty rates for shift workers
- A $500 gift card upfront, followed by an additional $500 gift card for the next two years
A Broader Victory for Labor Rights
Kennedy framed the outcome as not just a win for Woolworths workers but also a precedent for ensuring fair labor practices in the evolving digital age.
“Today, warehouse workers at Woolworths have not only saved Christmas but also set a crucial benchmark for fair work practices in the AI surveillance era,” he said.
Looking Ahead
With operations resuming at the affected distribution centres, Woolworths is now focused on restocking shelves and ensuring a smoother holiday season for its customers. While the resolution marks a victory for both parties, it also underscores the ongoing challenges in balancing productivity demands with worker rights in an increasingly automated workplace.
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