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The Guardian - AU
The Guardian - AU
Business
Ariel Bogle

Noticing fewer groceries on the shelves at Woolworths? Here’s what you need to know

Emptying shelves at the Woolworths on Smith Street, Collingwood in Melbourne as distribution centre workers continue to strike
Emptying shelves at the Woolworths on Smith Street, Collingwood amid a continuing strike by distribution centre workers. Photograph: Holly Hales/AAP

More than 1,500 Woolworths warehouse workers have been on strike since 21 November, seeking better pay and safety on the job.

Industrial action has affected up to five distribution centres run by Primary Connect, the supermarket giant’s supply chain arm.

The United Workers Union (UWU) is demanding a wage rise for workers. It also wants Woolies to scrap a productivity framework imposed on workers.

In October, Guardian Australia revealed concerns from staff in Woolworths warehouses about the efficiency crackdown, including that they were being tracked and pushed to comply with unrealistic and risky standards.

Why are workers on strike?

The UWU wants a pay increase to at least $38 an hour for staff, with additional percentage increases in following years, as well as consistent wages and conditions across distribution centres.

The union also wants the company to scrap a “Coaching and Productivity Framework” introduced at some sites in late 2023, which aimed to enforce an “efficiency rate” of 100%.

For example, workers who “pick” – a task that involves wearing a headset which directs which items to take from shelves and how long it should take – have their performance tracked and measured.

If they don’t meet efficiency targets, consequences can range from coaching, disciplinary action to even loss of employment, according to documents seen by Guardian Australia.

Workers told the Guardian the framework was a “bullying” tactic, and putting safety at risk. “It’s just pressure, pressure, pressure,” one said. It was paused after worker pushback, but there are fears it will be reintroduced.

At the time, a Primary Connect spokesperson said the framework helped with applying a fair approach for workers, and that it was committed to safety and productivity at its sites.

Where is affected by the strike?

Indefinite strike action began on 21 November at four warehouses across New South Wales and Victoria. They are the Melbourne Liquor Distribution Centre, the Melbourne South Regional Distribution Centre, the Erskine Park Distribution Centre and the Barnawartha North distribution centre.

Since then, staff at the Queensland Heathwood distribution centre, located 20km south-west of Brisbane’s CBD, also commenced industrial action, though have since returned to work.

Staff at Lineage cold storage shed at Laverton, a Melbourne cold storage warehouse that supplies Woolworths stores, have also walked out.

Is the strike having an impact on stores?

Yes, the strikes are affecting the flow of goods into Woolworths retail stores.

Guardian Australia found no supply of cold drinks in one Melbourne CBD Metro location, with a sign in the store advising of delays due to industrial action, while there was a reported shortage of snacks and paper towels at Woolworths Vermont.

A spokesperson for Woolworths confirmed on Sunday there was “limited stock flow” in some stores in Victoria, NSW and the ACT, but did not list them.

What does Woolworths say?

Woolworths has pushed back against UWU demands, and claimed the wages it wants are well above inflation during a time of “cost-of-living pressures” for customers.

On Sunday, Woolworths announced it would reopen its Primary Connect Melbourne South Regional Distribution Centre due to stock issues, leading workers to maintain a picket line Monday.

The reopening has not gone ahead so far.

Has anyone endorsed Woolworths' pay offer?

UWU and Woolworths met for negotiations today, but no agreement was reached.

“We are hopeful of a breakthrough because our workers deserve to be safe at work,” the UWU national secretary, Tim Kennedy, said.

Woolworths said in its statement on Sunday that the Shop, Distributive and Allied Employees’ Association (SDA) had endorsed a “competitive” pay offer from Woolworths, which an SDA spokesperson confirmed, though it was not publicly disclosed. The grocery giant described the offer as “above industry standards, above local market rates, above inflation, and approximately 40% above the Storage Services Award”.

Both the SDA and UWU operate in Primary Connect distribution centres, however SDA is the minority union.

“The other union referred to by Woolworths, which largely represents retail workers, has less than 10 members affected by the framework in this dispute, compared to the 1,500 United Workers Union members on strike,” Kennedy said in a statement.

SDA declined to comment, while Woolworths did not respond to a request for comment by deadline.

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