Woolworths strikes deal with union to end warehouse industrial dispute

Woolworths has struck a deal with the United Workers Union, ending a long-running warehouse worker strike that had stripped the supermarket giant’s shelves bare.

The company announced the deal in a statement on Saturday afternoon, declaring its major Dandenong South distribution centre in Melbourne’s south-east could be open again within hours.

The United Workers Union (UWU) later confirmed workers across three warehouses in Victoria and one in NSW had voted to accept a revised offer after striking for 17 days.

The union said the strike was primarily about the “Woolworths framework”, a worker performance management program that monitors pick rates.

The UWU said negotiations with Woolworths had yielded “real movement” this week, and a new clause would now be added to workplace agreements “that ensures that the workers will not be disciplined for the speed that they can work at” and acknowledges “not everybody can pick at 100 per cent”.

In a statement, the union said it had also secured wage increases above the rate of inflation.

“Today, warehouse workers at Woolworths have saved Christmas,” UWU national secretary Tim Kennedy said. “But more importantly, they have challenged one of the most significant threats to worker safety and wellbeing as we enter a new AI-surveillance era of work. And they have won.”

Woolworths said its four warehouses “will be stood back up to full capacity as soon as possible”.

Chief executive Amanda Bardwell said the supermarket giant was now focused on restocking empty shelves, with just over two weeks before Christmas.

“We are pleased to have endorsed offers for new terms and conditions and a competitive wage for our team at our four distribution centres that have been subject to indefinite industrial action over recent weeks,” she said.

Woolworths distribution workers vote on their new agreement on Saturday afternoon.Credit: Nine News

“Turning back ‘on’ such a large part of our supply chain will mean it will take some time for our stores to look their best and we’ll be ramping up as much as we can to get products to the stores where they’re needed most.”

Earlier on Saturday, a picket line outside the Dandenong South distribution centre stretched across the driveway and prevented Woolworths workers from being able to enter the site, despite a Fair Work Commission ruling on Friday that barred striking workers from blocking access.

However, the picket line was not comprised of UWU members. Instead, it was a group of sympathisers from other unions that stood in a line to block a coach, which contained a group dressed in high-vis vests and arrived just before 8am. The bus quickly departed after the entrance was blocked by 10 people.

The non-UWU group also denied entry to a Veolia rubbish truck that attempted to enter about 10am.

A human barricade at Dandenong South distribution centre on Saturday morning.Credit: Adam Carey

More than 1500 workers began an indefinite strike on November 17. On Tuesday, Woolworths said the action had cost the business $50 million.

The stand-off has also led to alcohol shortages at some Dan Murphy’s and BWS stores in Victoria and southern NSW. Drinks giant Endeavour Group is a customer of Primary Connect, Woolworths’ distribution arm.

The Shop, Distributive and Allied Employees’ Association (SDA) previously endorsed an enterprise agreement that increased wages 12.84 per cent over three years, alongside an upfront cash payment and other boosted penalties, allowances and conditions.

However, that deal did not include a clause stopping workers being disciplined for failing to meet monitored pick rates, which was the impetus of the UWU strike.

The union has said Woolworths’ move to make 100 per cent adherence to pre-determined pick rates mandatory – rather than a non-enforced goal – was chilling, unethical, unsafe, and treated workers like robots.

Woolworths had said it was a necessary tool to ensure adequate productivity. The group previously said it was flexible when it comes to applying these performance standards to personal circumstances or abilities.

On Saturday, UWU secretary Kennedy said the dispute was important because it was about the right of workers to have input into how AI algorithmic systems surveilled them and ensure it was transparent, fair and “respects fundamental humanness of people”.

“Breaking the link between measuring the speed of workers and automatic discipline if they fall behind is a significant achievement of the workers, and a sign that workers will have a say about how work is regulated as we move from the industrial age to the AI digital age,” Kennedy said.

With Colin Kruger and Hannah Hammoud

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