Why Woolies Wants the Blockade to End: 50 Million Reasons

Supermarket giant Woolworths states that it has incurred a $50 million loss due to a strike, and it is appealing to the Fair Work Commission to prevent employees from blocking its distribution centers.

United Workers Union (UWU) members have been on a picket line outside a distribution center in suburban Melbourne and three other locations for 13 days, resulting in empty shelves as workers demand improved conditions and wages.

Woolworths has apologized to customers for the disruptions in supply, attributing a $50 million loss in food sales to the strike.

The company mentioned that the union is negotiating for pay raises exceeding 25% over three years, at a time when Woolworths is focused on maintaining affordable prices for customers.

Woolworths urgently applied to the Fair Work Commission to address the strike on Tuesday, alleging a violation of good faith bargaining requirements. A hearing for the matter is pending.

Just a day after the union declined to assure safe passage for employees willing to return to work, Woolworths confirmed that the majority of staff at the Dandenong South location are not union members and are eager to resume work and receive payment.

However, the union asserts that 85% of the site’s staff are members, with the majority voting for action, and they intend to continue picketing until a resolution is met.

Workers have set up portable toilets and marquees outside the warehouse to cope with the heat and heavy rain.

Despite Woolworths’ plans to reopen the distribution center on Tuesday, they will heed advice from Victoria Police on safety measures.

As of mid-afternoon, there were no attempts to transport workers to the Dandenong South site, which contributes to over 40% of the combined output of the four closed distribution centers.

During a statement at the Dandenong South site, UWU national secretary Tim Kennedy refuted claims of bad faith bargaining and did not specify how union members would react if Woolworths tried to bring in staff to reopen the center.

He mentioned to reporters, “If Woolworths brings a few workers who wish to work in, it won’t resolve the issue. It won’t operate the warehouse and refill the shelves.”

The Electrical Trades Union donated $50,000 to the United Workers Union strike fund to show solidarity with the striking workers. Kennedy denied allegations that the union is covering wages, stating that the workers are being well supported.

The strike has led to empty supermarket shelves in Victoria, similar to scenes during the COVID-19 pandemic. Stores have reported shortages in items like toilet paper, bread, and refrigerated products.

Shoppers ordering groceries are advised to allow substitutions to ensure they receive desired products amid the strike.

Warehouse employees are protesting against unrealistic productivity expectations, resulting in frequent injuries. They are demanding better wages and equal pay for workers across different sites.

Woolworths argues that abandoning the productivity framework would hinder their ability to manage efficiency.

While the strike has not yet impacted Victorian farmers, essential items like nappies, toilet paper, and beverages have been affected.

Woolworths is implementing contingency plans to mitigate the strike’s effects on customers, such as increasing inventory at stores, utilizing a broader distribution network, and receiving direct deliveries from suppliers.